Using and Improving the Social Cost of Carbon

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Date

Feb. 4, 2014

Authors

William Pizer, Matthew Adler, Joseph E. Aldy, David Anthoff, Maureen L. Cropper, Kenneth Gillingham, Michael Greenstone, Brian Murray, Richard G. Newell, R. Richels, A. Rowell, S. Waldhoff, and Jonathan Wiener

Publication

Journal Article

Reading time

1 minute

The social cost of carbon (SCC) is a crucial tool for economic analysis of climate policies. The SCC estimates the dollar value of reduced climate change damages associated with a one-metric-ton reduction in carbon dioxide (CO2) emissions. Although the conceptual basis, challenges, and merits of the SCC are well established, its use in government cost-benefit analysis (CBA) is relatively new. In light of challenges in constructing the SCC, its newness in government regulation, and the importance of updating, we propose an institutional process for regular SCC review and revision when used in government policy-making and suggest how scientists might contribute to improved SCC estimates.

Topics

Social Cost of Carbon

Authors

William A. Pizer

President and CEO, Resources for the Future

Billy Pizer is President and CEO of Resources for the Future.

Matthew Adler

Joseph E. Aldy

University Fellow

Joe Aldy is a university fellow at RFF and professor of the practice of public policy at Harvard’s Kennedy School. His research focuses on climate change policy, energy policy, and mortality risk evaluation.

David Anthoff

University Fellow

David Anthoff is a university fellow at RFF and assistant professor in the Energy and Resources Group at the University of California, Berkeley. As an environmental economist, he studies climate change and environmental policy.

Maureen L. Cropper

Senior Fellow

Maureen Cropper is a a senior fellow at RFF, professor of economics at the University of Maryland, a member of the Board of Directors at the National Bureau of Economic Research, and a member of the National Academy of Sciences.

Kenneth Gillingham

Michael Greenstone

Brian Murray

Richard G. Newell

Senior Advisor; Former President and CEO, Resources for the Future

Richard G. Newell

R. Richels

A. Rowell

S. Waldhoff

Jonathan B. Wiener

University Fellow

Jonathan Wiener is a university fellow at RFF and is an expert on US, European, and international environmental law and risk regulation

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