Regional and Sectoral Estimates of the Social Cost of Carbon: An Application of Fund
31 Pages Posted: 15 Dec 2011
Date Written: 2011
Abstract
The social cost of carbon is an estimate of the benefit of reducing CO2 emissions by one ton today. As such it is a key input into cost-benefit analysis of climate policy and regulation. We provide a set of new estimates of the social cost of carbon from the integrated assessment model FUND 3.5 and present a regional and sectoral decomposition of our new estimate. China, Western Europe and the United States have the highest share of harmful impacts, with the precise order depending on the discount rate. The most important sectors in terms of impacts are agriculture and increased energy use for cooling. We present an extensive sensitivity analysis with respect to the discount rate, equity weights, different socio economic scenarios and values for the climate sensitivity parameter.
Keywords: Climate change, social cost of carbon
JEL Classification: Q54
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Equity Weighting and the Marginal Damage Costs of Climate Change
By David Anthoff, Cameron J. Hepburn, ...
-
On the Importance of Equity in International Climate Policy: An Empirical Analysis
By Andreas Lange, Carsten Vogt, ...
-
AD-DICE: An Implementation of Adaptation in the DICE Mode
By Kelly C. De Bruin, Rob Dellink, ...
-
Cooperation in International Environmental Negotiations Due to a Preference for Equity
By Andreas Lange and Carsten Vogt
-
Equity and Justice in Global Warming Policy
By Snorre Kverndokk and Adam Rose
-
The Polluter Pays Principle and Cost-Benefit Analysis of Climate Change: An Application of Fund
-
On the Self-Serving Use of Equity Principles in International Climate Negotiations
By Andreas Lange, Andreas Löschel, ...
-
On the Self-Interested Use of Equity in International Climate Negotiations
By Andreas Lange, Andreas Löschel, ...
-
The Impact of Equity-Preferences on the Stability of Heterogeneous International Agreements
