Improving the assessment and valuation of climate change impacts for policy and regulatory analysis
- 1.5k Downloads
The social cost of carbon (SCC) is a monetized metric for evaluating the benefits associated with marginal reductions in carbon dioxide (CO2) emissions. It represents the expected welfare loss from the future damages caused by the release of one tonne of CO2 in a given year, expressed in consumption equivalent terms.1 It is intended to be a comprehensive measure, taking into account changes in agricultural productivity, human health risks, loss of ecosystem services and biodiversity, and the frequency and severity of flooding and storms, among other possible impacts. Estimating the SCC requires long-term modeling of global economic activity, the climate system, and the linkages between the two through anthropogenic greenhouse gas (GHG) emissions and the effects of changing climatic conditions on economic activity and human well-being.
The United States government currently uses the SCC in regulatory benefit-cost analyses to assess the welfare effects of changes in CO2emissions (Kopp...
KeywordsClimate Change Impact Climate Sensitivity Equilibrium Climate Sensitivity Community Earth System Model Physical Climate
- Hof AF, Hope CW, Lowe J, Mastrandrea MD, Meinshausen M, Vuuren DP (2011) The benefits of climate change mitigation in integrated assessment models: the role of the carbon cycle and climate component. Climatic ChangeGoogle Scholar
- Interagency Working Group on the Social Cost of Carbon, United States Government (2010) Appendix 15a. Social Cost of Carbon for Regulatory Impact Analysis under Executive Order 12866, in: Final Rule Technical Support Document (TSD): Energy Efficiency Program for Commercial and Industrial Equipment: Small Electric Motors. U.S. Department of EnergyGoogle Scholar
- Kopp RE, Mignone BK (2012) The U.S. government’s social cost of carbon estimates after their first two years: pathways for improvement. Economics 2012:2012–2015Google Scholar
- Kopp R, Tol R, Waldhoff S (eds) (2012a) The social cost of carbon (special issue), economics: The Open-Access, Open-Assessment E-JournalGoogle Scholar
- Kopp RE, Golub A, Keohane NO, Onda C (2012b) The influence of the specification of climate change damages on the social cost of carbon. Economics 6:2012–2013Google Scholar
- Marten AL (2011). Transient Temperature Response Modeling in IAMs: The Effects of Over Simplification on the SCC. Economics: The Open-Access, Open-Assessment E-Journal, 5:2011–18Google Scholar
- NAS (2009), Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use, National Academies Press, Washington, DC.Google Scholar
- Nordhaus WD (2011) “Estimates of the social cost of carbon: background and results from the RICE-2011 Model.” NBER Working Paper No. 17450. http://www.nber.org/papers/w17540
- O’Neill B (2010) Multi-century scenario development and socioeconomic uncertainty, in: improving the assessment and valuation of climate change impacts for policy and regulatory analysis: modeling climate change impacts and Associated Economic Damages. U.S. Environmental Protection Agency and U.S. Department of EnergyGoogle Scholar
- Stern N (2007) The economics of climate change: The Stern review. Cambridge University Press, Cambridge, UK, pp 161–190Google Scholar