22 Pages Posted: 18 Dec 2011
Date Written: 2011
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: 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