Carleton, Tamma and Greenstone, Michael, Updating the United States Government’s Social Cost of Carbon (January 14, 2021). University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2021-04, Available at SSRN: https://ssrn.com/abstract=3764255
In the NewsBloombergFebruary 13, 2021
Why Biden Is Reviving Climate Change’s Magic Number
It’s a number with a name its inventors concede is baffling. But it may also be, as many in the field have called it, the most important number you’ve never heard of. The “social cost of carbon,” or SCC, was created to show policy makers the gap between the market price of fossil fuels and the cost of the environmental damage they cause. The Trump administration all but ignored climate accounting in its regulations, but President Joe Biden has ordered his staff to move promptly to calculate new social cost estimates for CO₂, plus nitrous oxide and methane.
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This paper outlines a two-step process to return the United States government’s Social Cost of Carbon (SCC) to the frontier of economics and climate science.Read