Monetizing the Value of Measurements of Equilibrium Climate Sensitivity Using the Social Cost of Carbon

2019 ◽  
Vol 25 (1) ◽  
pp. 59-72 ◽  
Author(s):  
Roger M. Cooke ◽  
Alexander Golub ◽  
Bruce Wielicki ◽  
Martin Mlynczak ◽  
David Young ◽  
...  
Keyword(s):  
Climate Sensitivity ◽  
Social Cost ◽  
Social Cost Of Carbon ◽  
Equilibrium Climate Sensitivity ◽  
The Social

scholarly journals EMPIRICALLY CONSTRAINED CLIMATE SENSITIVITY AND THE SOCIAL COST OF CARBON

2017 ◽  
Vol 08 (02) ◽  
pp. 1750006 ◽  
Author(s):  
KEVIN DAYARATNA ◽  
ROSS McKITRICK ◽  
DAVID KREUTZER
Keyword(s):  
Climate Sensitivity ◽  
Integrated Assessment ◽  
Social Cost ◽  
Climate Model ◽  
Temperature Response ◽  
Social Cost Of Carbon ◽  
Ocean Heat Uptake ◽  
Monte Carlo Experiments ◽  
The Social ◽  
Dice Model

Integrated Assessment Models (IAMs) require parameterization of both economic and climatic processes. The latter includes Equilibrium Climate Sensitivity (ECS), or the temperature response to doubling CO2 levels, and Ocean Heat Uptake (OHU) efficiency. ECS distributions in IAMs have been drawn from climate model runs that lack an empirical basis, and in Monte Carlo experiments may not be constrained to consistent OHU values. Empirical ECS estimates are now available, but have not yet been applied in IAMs. We incorporate a new estimate of the ECS distribution conditioned on observed OHU efficiency into two widely used IAMs. The resulting Social Cost of Carbon (SCC) estimates are much lower than those from models based on simulated ECS parameters. In the DICE model, the average SCC falls by approximately 40–50% depending on the discount rate, while in the FUND model the average SCC falls by over 80%. The span of estimates across discount rates also shrinks substantially.

scholarly journals The Risk-Adjusted Carbon Price

2021 ◽  
Vol 111 (9) ◽  
pp. 2782-2810
Author(s):  
Ton S. Van den Bremer ◽  
Frederick Van der Ploeg
Keyword(s):  
Perturbation Theory ◽  
Climate Sensitivity ◽  
Social Cost ◽  
Carbon Price ◽  
Numerical Results ◽  
Social Cost Of Carbon ◽  
Economic Risk ◽  
Present Value ◽  
Analytical Results ◽  
The Social

The social cost of carbon is the expected present value of damages from emitting one ton of carbon today. We use perturbation theory to derive an approximate tractable expression for this cost adjusted for climatic and economic risk. We allow for different aversion to risk and intertemporal fluctuations, skewness and dynamics in the risk distributions of climate sensitivity and the damage ratio, and correlated shocks. We identify prudence, insurance, and exposure effects, reproduce earlier analytical results, and offer analytical insights into numerical results on the effects of economic and damage ratio uncertainty and convex damages on the optimal carbon price. (JEL E12, G22, H23, O44, Q35, Q51, Q54)

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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