Working Paper: NBER ID: w16913
Authors: Michael Greenstone; Elizabeth Kopits; Ann Wolverton
Abstract: The United States Government recently concluded a year-long process to develop a range of values representing the monetized damages associated with an incremental increase in carbon dioxide (CO2) emissions, commonly referred to as the social cost of carbon (SCC). These values are currently used in benefit-cost analyses to assess potential federal regulations. For 2010, the central value of the SCC is $21 per ton of CO2 emissions and sensitivity analyses are to be conducted at $5, $35, and $65 (2007$). This paper summarizes the methodology and process used to develop the SCC values, complemented with our own commentary about how the SCC can be used to inform regulatory decisions and areas where further research would be particularly useful.
Keywords: social cost of carbon; regulatory analysis; integrated assessment models
JEL Codes: Q51; Q54; Q58
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| carbon emissions (Q54) | economic damages (K13) |
| carbon emissions (Q54) | higher temperatures (Q54) |
| higher temperatures (Q54) | adverse effects on agricultural productivity (Q11) |
| higher temperatures (Q54) | adverse effects on human health (I12) |
| higher temperatures (Q54) | property damages from flooding (Q54) |
| higher temperatures (Q54) | adverse effects on ecosystem services (Q57) |
| SCC (L96) | regulatory decision-making (D91) |