Improving the assessment and valuation of climate change impacts for policy and regulatory analysis
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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
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