scholarly journals Climate Impacts on Economic Growth as Drivers of Uncertainty in the Social Cost of Carbon

2014 ◽  
Vol 43 (2) ◽  
pp. 401-425 ◽  
Author(s):  
Elisabeth J. Moyer ◽  
Mark D. Woolley ◽  
Nathan J. Matteson ◽  
Michael J. Glotter ◽  
David A. Weisbach
Keyword(s):  
Economic Growth ◽  
Social Cost ◽  
Climate Impacts ◽  
Social Cost Of Carbon ◽  
The Social

scholarly journals Climate Impacts on Economic Growth as Drivers of Uncertainty in the Social Cost of Carbon

2013 ◽  
Author(s):  
Elisabeth J. Moyer ◽  
Mark D. Woolley ◽  
Michael Glotter ◽  
David A. Weisbach
Keyword(s):  
Economic Growth ◽  
Social Cost ◽  
Climate Impacts ◽  
Social Cost Of Carbon ◽  
The Social

scholarly journals The Social Cost of Carbon, Greenhouse Gas Policies, and Politicized Benefit/Cost Analysis

2018 ◽  
Vol 6 (1) ◽  
pp. 59-76
Author(s):  
Benjamin Zycher
Keyword(s):  
Cost Analysis ◽  
Social Cost ◽  
Climate Impacts ◽  
Cost Calculation ◽  
Substantial Part ◽  
Social Cost Of Carbon ◽  
Benefit Cost Analysis ◽  
Climate Policies ◽  
The Social ◽  
Benefit Cost

Benefit/cost analysis can be a powerful tool for examination of proposed (or alternative) public policies, but, unsurprisingly, decisionmakers’ policy preferences can drive the analysis, rather than the reverse. That is the reality with respect to the Obama Administration computation of the social cost of carbon, a crucial parameter underlying the quantitative analysis of its proposed climate policies, now being reversed in substantial part by the Trump Administration. The Obama analysis of the social cost of carbon suffered from four central problems: the use of global benefits in the benefit/cost calculation, the failure to apply a 7% discount rate as required by Office of Management and Budget guidelines, the conflation of climate and GDP effects of climate policies, and the inclusion of non-climate effects of climate policies as co-benefits, as a tool with which to overcome the trivial temperature and other climate impacts of those policies. Moreover, the Obama analysis included in its “market failure” analysis the fuel price parameter that market forces are likely to incorporate fully. This Article suggests that policymakers and other interested parties would be wise to concentrate on the analytic minutia underlying policy proposals because policy analysis cannot be separated from politics.

scholarly journals Climate-economy feedbacks, temperature variability, and the social cost of carbon

2020 ◽  
Author(s):  
Jarmo Kikstra ◽  
Paul Waidelich ◽  
James Rising ◽  
Dmitry Yumashev ◽  
Chris Hope ◽  
...  
Keyword(s):  
Climate Change ◽  
Social Cost ◽  
Climate Change Impacts ◽  
Climate Impacts ◽  
Temperature Variability ◽  
Policy Implications ◽  
Social Cost Of Carbon ◽  
Intergovernmental Panel ◽  
Country Level ◽  
The Social

<p>A key statistic describing climate change impacts is the “social cost of carbon” (SCC), the total market and non-market costs to society incurred by releasing a ton of CO<sub>2</sub>. Estimates of the SCC have risen in recent years, with improved understanding of the risk of climate change to various sectors, including agriculture [1], mortality [2], and economic growth [3].</p><p>The total risks of climate impacts also depend on the representation of human-climate feedbacks such as the effect of climate impacts on GDP growth and extremes (rather than a focus only on means), but this relationship has not been extensively studied [4-7]. In this paper, we update the widely used PAGE IAM to investigate how SCC distributions change with the inclusion of climate-economy feedbacks and temperature variability. The PAGE model has recently been improved with representations of permafrost thawing and surface albedo feedback, CMIP6 scenarios, and empirical market damage estimates [8]. We study how changes from PAGE09 to PAGE-ICE affected the SCC, increasing it up to 75%, with a SCC distribution with a mean around $300 for the central SSP2-4.5 scenario. Then we model the effects of different levels of the persistence of damages, for which the persistence parameter is shown to have enormous effects. Adding stochastic interannual regional temperature variations based on an analysis of observational temperature data [9] can increase the hazard rate of economic catastrophes changes the form of the distribution of SCC values. Both the effects of temperature variability and climate-economy feedbacks are region-dependent. Our results highlight the importance of feedbacks and extremes for the understanding of the expected value, distribution, and heterogeneity of climate impacts.</p><p> </p><p>[1] Moore, F. C., Baldos, U., Hertel, T., & Diaz, D. (2017). New science of climate change impacts on agriculture implies higher social cost of carbon. Nature communications, 8(1), 1607.</p><p>[2] Carleton, et al. (2018). Valuing the global mortality consequences of climate change accounting for adaptation costs and benefits.</p><p>[3] Ricke, K., Drouet, L., Caldeira, K., & Tavoni, M. (2018). Country-level social cost of carbon. Nature Climate Change, 8(10), 895.</p><p>[4] Burke, M., et al. (2016). Opportunities for advances in climate change economics. Science, 352(6283), 292–293. https://doi.org/10.1126/science.aad9634</p><p>[5] National Academies of Sciences Engineering and Medicine. (2017). Valuing climate damages: updating estimation of the social cost of carbon dioxide. National Academies Press.</p><p>[6] Stiglitz, J. E., et al.. (2017). Report of the high-level commission on carbon prices.</p><p>[7] Field, C. B., Barros, V., Stocker, T. F., & Dahe, Q. (2012). Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation: Special Report of the Intergovernmental Panel on Climate Change (Vol. 9781107025). https://doi.org/10.1017/CBO9781139177245.009</p><p>[8] Yumashev, D., et al. (2019). Climate policy implications of nonlinear decline of Arctic land permafrost and other cryosphere elements. Nature Communications, 10(1). https://doi.org/10.1038/s41467-019-09863-x</p><p>[9] Brierley, C. M., Koch, A., Ilyas, M., Wennyk, N., & Kikstra, J. S. (2019, March 12). Half the world's population already experiences years 1.5°C warmer than preindustrial. https://doi.org/10.31223/osf.io/sbc3f</p>

scholarly journals Inequality, climate impacts on the future poor, and carbon prices

2015 ◽  
Vol 112 (52) ◽  
pp. 15827-15832 ◽  
Author(s):  
Francis Dennig ◽  
Mark B. Budolfson ◽  
Marc Fleurbaey ◽  
Asher Siebert ◽  
Robert H. Socolow
Keyword(s):  
Social Cost ◽  
Climate Change Impacts ◽  
Carbon Price ◽  
Integrated Model ◽  
Climate Impacts ◽  
Social Cost Of Carbon ◽  
Fine Grained ◽  
The Social ◽  
Common Observation ◽  
Carbon Prices

Integrated assessment models of climate and the economy provide estimates of the social cost of carbon and inform climate policy. We create a variant of the Regional Integrated model of Climate and the Economy (RICE)—a regionally disaggregated version of the Dynamic Integrated model of Climate and the Economy (DICE)—in which we introduce a more fine-grained representation of economic inequalities within the model’s regions. This allows us to model the common observation that climate change impacts are not evenly distributed within regions and that poorer people are more vulnerable than the rest of the population. Our results suggest that this is important to the social cost of carbon—as significant, potentially, for the optimal carbon price as the debate between Stern and Nordhaus on discounting.

The social cost of carbon in a non-cooperative world

2021 ◽  
pp. 103490
Author(s):  
Christoph Hambel ◽  
Holger Kraft ◽  
Eduardo Schwartz
Keyword(s):  
Social Cost ◽  
Social Cost Of Carbon ◽  
The Social
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