The Social Cost of Carbon: Trends, Outliers and Catastrophes
23 Pages Posted: 29 Nov 2010
Date Written: 2007
211 estimates of the social cost of carbon are included in a meta-analysis. The results confirm that a lower discount rate implies a higher estimate; and that higher estimates are found in the gray literature. It is also found that there is a downward trend in the economic impact estimates of the climate; that the Stern Review's estimates of the social cost of carbon is an outlier; and that the right tail of the distribution is fat. There is a fair chance that the annual climate liability exceeds the annual income of many people.
Keywords: Climate change, social cost of carbon
JEL Classification: Q54
Suggested Citation: Suggested Citation