27 Pages Posted: 15 Dec 2011
Date Written: 2011
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.
Keywords: Climate change, social cost of carbon
JEL Classification: Q54, Q58
Suggested Citation: Suggested Citation
Kopp, Robert E. and Mignone, Bryan K., The US Government's Social Cost of Carbon Estimates after Their First Year: Pathways for Improvement (2011). Economics Discussion Paper No. 2011-16. Available at SSRN: https://ssrn.com/abstract=1972776 or http://dx.doi.org/10.2139/ssrn.1972776