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)

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 Revisiting the social cost of carbon

2017 ◽  
Vol 114 (7) ◽  
pp. 1518-1523 ◽  
Author(s):  
William D. Nordhaus
Keyword(s):  
Carbon Dioxide Emissions ◽  
Social Cost ◽  
Economic Cost ◽  
Social Cost Of Carbon ◽  
Central Concept ◽  
Climate Change Policies ◽  
Current Period ◽  
The Social ◽  
Central Case ◽  
Dice Model

The social cost of carbon (SCC) is a central concept for understanding and implementing climate change policies. This term represents the economic cost caused by an additional ton of carbon dioxide emissions or its equivalent. The present study presents updated estimates based on a revised DICE model (Dynamic Integrated model of Climate and the Economy). The study estimates that the SCC is $31 per ton of CO2 in 2010 US$ for the current period (2015). For the central case, the real SCC grows at 3% per year over the period to 2050. The paper also compares the estimates with those from other sources.

SOME RESEARCH CHALLENGES IN THE ECONOMICS OF CLIMATE CHANGE

2016 ◽  
Vol 07 (02) ◽  
pp. 1650002 ◽  
Author(s):  
MARSHALL BURKE ◽  
MELANIE CRAXTON ◽  
CHARLES D. KOLSTAD ◽  
CHIKARA ONDA
Keyword(s):  
Climate Change ◽  
Integrated Assessment ◽  
Social Cost ◽  
Emissions Reduction ◽  
Social Cost Of Carbon ◽  
Relevant Research ◽  
Climate Policies ◽  
The Social ◽  
The World ◽  
Research Questions

The paper reviews progress in understanding the economics of climate change with an emphasis on identifying promising advances that are both significant and nonmarginal, as well as areas in which there are key gaps in our knowledge. We highlight several important areas in which important policy-relevant research questions remain: improving estimates of climate damage used for determining the social cost of carbon, refining integrated assessment models, and designing better climate policies. As the world moves to understand and implement country emissions reduction pledges in the context of the UNFCCC, understanding the economics of the problem will become even more important. The hope is that the paper is not only informative for existing economists already working in climate change economics, but that it also serves as an inspiration for economists in other areas, or even those in other disciplines, on ways in which to contribute to solving the problem at hand.

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