The Marginal Costs Of Carbon Dioxide Emissions: An Assessment Of The Uncertainties
Abstract88 estimates of the marginal costs of carbon dioxide emissions were gathered from 22 published studies and combined to form a probability density function. The uncertainty is strongly rightskewed. If all studies are combined, the mode is $5/tC, the mean $104/tC, and the 95 percentile $446/tC. Studies with a lower discount rate have higher estimates and a much greater uncertainties. Similarly, studies, which use equity weighing, have higher estimates and larger uncertainties. Interestingly, studies that are peer-reviewed have lower estimates and smaller uncertainties. Using standard assumptions about discounting and aggregation, the marginal costs of carbon dioxide emissions unlikely to exceed $50/tC, and probably much smaller.
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Bibliographic InfoPaper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-19.
Length: 24 pages
Date of creation: Apr 2003
Date of revision: Apr 2003
Publication status: Published, Energy Policy, 33 (16), 2064-2074
Emission Leakage; Agricultural Sector Model; Greenhouse Gas Policy; Mitigation; Carbon Sequestration;
Find related papers by JEL classification:
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
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