A recent analysis by researchers has supported a higher estimate of the social cost of carbon, contradicting the Trump administration’s plans to eliminate this measure. The study, known as GIVE, found that the social cost of carbon is likely between $100 and $200 per ton, depending on various economic factors. This estimate is significantly higher than the Obama-era estimate of $50 per ton.
The researchers used a variety of discount rates and climate sensitivity estimates to arrive at their conclusion. They also considered alternative approaches to modeling the impact of carbon emissions on global temperatures. In all cases, they found that the costs of climate change outweigh any potential benefits.
However, the study’s authors note that their policy recommendations diverge significantly from the analysis that precedes it. Despite finding higher uncertainty in their estimate, they call for the Trump administration to eliminate the SCC and endorse a new law to prohibit its use in the future. This approach would replace an uncertain range of the SCC with an overly precise estimate of exactly $0.
This proposed omission of the SCC is contrary to federal case law and would be unscientific. The researchers argue that the appropriate response to uncertainty is not to throw up one’s hands, but rather to use appropriate tools to systematically assess and quantify the uncertainty. They also note that homeowners value insurance that protects them against risk exposure to highly uncertain events like fires.
The study’s findings have significant implications for climate policy. With the social cost of carbon estimated at $100 to $200 per ton, policymakers must carefully consider the potential costs and benefits of different policies when making decisions about how to address climate change.
Source: https://www.resources.org/common-resources/when-put-to-the-test-higher-social-cost-of-carbon-stands-firm