The Time Evolution of the Social Cost of Carbon: An Application of FUND
AbstractWe estimate the growth rate of the social cost of carbon. This is an indication of the optimal rate of acceleration of greenhouse gas emission reduction policy over time. We find that the social cost of carbon increases by 1.3% to 3.9% per year, with a central estimate of 2.2%. Previous studies found an average rate of 2.3% and a range of 0.9-4.1%. The rate of increase of the social carbon depends on a range of factors, including the pure rate of time preference, the rate of risk aversion, equity weighting, the socio-economic and emission scenarios, the climate sensitivity, dynamic vulnerability, and the curvature of the impact functions.
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Bibliographic InfoPaper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP405.
Date of creation: Sep 2011
Date of revision:
agency/cost/equity/Greenhouse Gas emission reduction/growth/Policy/protection/risk/risk aversion/scenarios/Social cost of carbon;
Other versions of this item:
- Anthoff, David & Rose, Steven & Tol, Richard S. J. & Waldhoff, Stephanie, 2011. "The time evolution of the social cost of carbon: An application of fund," Economics Discussion Papers 2011-44, Kiel Institute for the World Economy.
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-22 (All new papers)
- NEP-ENE-2011-09-22 (Energy Economics)
- NEP-ENV-2011-09-22 (Environmental Economics)
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