Revisiting the social cost of carbon

• Published in: Proceedings of the National Academy of Sciences - PNAS Vol. 114; no. 7; pp. 1518 - 1523
• Main Author: Nordhaus, William D.
• Format: Journal Article
• Language: English
• Published: United States National Academy of Sciences 14.02.2017; National Academy of Sciences, Washington, DC (United States)
• Subjects: Carbon dioxide; Carbon dioxide emissions; Climate change; Climate policy; Comparative analysis; DICE model; economics; Emissions; ENVIRONMENTAL SCIENCES; Physical Sciences; social cost carbon; Social Sciences; DICE model; economics; social cost carbon; climate change
• ISSN: 0027-8424; 1091-6490
• DOI: 10.1073/pnas.1609244114

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.