This paper aims at providing a consistent framework to appraise alternative modeling choices that have driven the so-called “when flexibility” controversy since the early 1990s dealing with the optimal timing of mitigation efforts and the Social Cost of Carbon (SCC)…
Étiqueté : Social Cost of Carbon
We evaluate a recent U.S. initiative to include the social cost of carbon (SCC) in regulatory decisions. To our knowledge, this paper provides the first systematic test of the extent to which applying the SCC has affected national policy. We examine all economically significant federal regulations since 2008, and obtain a surprising result: Putting a value on changes in carbon dioxide emissions does not generally affect the ranking of the preferred policy compared with the status quo…
A plethora of integrated assessment models (IAMs) have been con- structed and used to estimate the social cost of carbon (SCC) and evaluate alternative
abatement policies. These models have crucial flaws that make them close to useless as tools for policy analysis…
“Economic growth over the coming centuries is one of the major determinants of today’s optimal greenhouse gas mitigation policy. At the same time, long-run economic growth is highly uncertain. This paper is the first to evaluate optimal mitigation policy under long-term growth uncertainty in a stochastic integrated assessment model of climate change…”
This FEEM paper aims at appraising the relative impacts of such key drivers of the controversy on the social cost of carbon and climate policy recommendations
This FEEM paper demonstrates that determining a workable range of the social costs of carbon is however possible in a sequential decision-making framework that permits revising initial decisions in the light of new information
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%.
This NBER study describes the development of the concept of social cost of carbon as well as its analytical background
An OIES working paper
The U.S. government’s estimate of the social cost of carbon is flawed, according to a new E3 Network report.
Drawing upon climate change damage functions previously proposed in the literature that the authors have calibrated to a common level of damages at 2.5 C, the paper examine the effect upon the social cost of carbon (SCC) of varying the specification of damages in a DICE-like integrated assessment model
David Anthoff, Stephanie Waldhoff, Richard S. J. Tol, and Steven Rose’s paper submitted to the special issue “”The Social Cost of Carbon” of Economics. E-journal
We first examine the necessary conditions for climate finance to trigger a virtuous circle of confidence among investors. Then we show that an agreement at a future COP on the value of the Social Cost of Carbon (SCC) and the recognition of resulting carbon assets by central banks as new legal reserves is decisive to leverage investments for LCPs