The Time Evolution of the Social Cost of Carbon: An Application of Fund

22 Pages Posted: 18 Dec 2011  

David Anthoff

University of California, Berkeley - Energy and Resources Group

Steven Rose

Electric Power Research Institute

Richard S. J. Tol

VU University Amsterdam - Institute for Environmental Studies (IVM); Carnegie Mellon University - Center for Integrated Study of the Human Dimensions of Global Change; University of Hamburg - Centre for Marine and Climate Research (ZMK); Princeton University

Stephanie T. Waldhoff

affiliation not provided to SSRN

Date Written: 2011

Abstract

The authors estimate the growth rate of the social cost of carbon. This is an indication of the optimal rate of acceleration of greenhouse gas emission reduction policy over time. The authors find that the social cost of carbon increases by 1.3% to 3.9% per year, with a central estimate of 2.2%. Previous studies found an average rate of 2.3% and a range of 0.9 to 4.1%. The rate of increase of the social carbon depends on a range of factors, including the pure rate of time preference, the rate of risk aversion, equity weighting, the socioeconomic and emission scenarios, the climate sensitivity, dynamic vulnerability, and the curvature of the impact functions.

Keywords: social cost of carbon

JEL Classification: Q54

Suggested Citation

Anthoff, David and Rose, Steven and Tol, Richard S. J. and Waldhoff, Stephanie T., The Time Evolution of the Social Cost of Carbon: An Application of Fund (2011). Economics Discussion Paper No. 2011-44. Available at SSRN: https://ssrn.com/abstract=1974112 or http://dx.doi.org/10.2139/ssrn.1974112

David Anthoff (Contact Author)

University of California, Berkeley - Energy and Resources Group ( email )

United States

Steven Rose

Electric Power Research Institute

3412 Hillview Avenue
P.O. Box 10412
Palo Alto, CA 94304-1395
United States

Richard S. J. Tol

VU University Amsterdam - Institute for Environmental Studies (IVM) ( email )

De Boelelaan 1115
Amsterdam, 1081 HV
Netherlands
+31 20 444 9555 (Phone)
+31 20 444 9553 (Fax)

Carnegie Mellon University - Center for Integrated Study of the Human Dimensions of Global Change

Pittsburgh, PA 15213-3890
United States

University of Hamburg - Centre for Marine and Climate Research (ZMK)

Troplowitzstrasse 7
D-22529 Hamburg
Germany

Princeton University ( email )

22 Chambers Street
Princeton, NJ 08544
United States

Stephanie T. Waldhoff

affiliation not provided to SSRN

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