The US Government's Social Cost of Carbon Estimates after Their First Year: Pathways for Improvement

Abstract:     
In 2010, the U.S. government adopted its first consistent estimates of the social cost of carbon (SCC) for government-wide use in regulatory cost-benefit analysis. Here, we examine a number of the limitations of the estimates identified in the U.S. government report and elsewhere and review recent advances that could pave the way for improvements. We consider in turn socioeconomic scenarios, treatment of physical climate response, damage estimates, ways of incorporating risk aversion, and consistency between SCC estimates and broader climate policy.

Number of Pages in PDF File: 27

Keywords: Climate change, social cost of carbon

JEL Classification: Q54, Q58

working papers series