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Comment on ‘Climate sensitivity, agricultural productivity and the social cost of carbon in FUND’

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  • Philip Meyer

Abstract

Dayaratna et al. (Environ Econ Policy Stud 22:433–448, 2020) proposes several improvements to economic- and climate-simulating IAMs and to their input variables. They show that an empirically based ECS estimate, agricultural damage estimates from recent literature, and discount rates as low as 2.5%, when used within the FUND model, yield a negative social cost of carbon through mid-twenty-first century. Five of their propositions, that “fat-tails” of the ECS distribution are improperly simulated by IAMS, FUND does not simulate enough benefits for agriculture, the ECS is near 1.5 °C, DICE and PAGE overestimate the SCC, and the marginal cost of public funds for carbon taxes has a value of at least a few dollars, are more closely analyzed. Estimates of ECS from a recent paper and a 5% discount rate applied to FUND result in an SCC estimated to lie within the range of about −$1 to $2.50 per metric ton CO2 for the year 2020.

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  • Philip Meyer, 2023. "Comment on ‘Climate sensitivity, agricultural productivity and the social cost of carbon in FUND’," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(2), pages 285-290, April.
    • Handle: RePEc:spr:envpol:v:25:y:2023:i:2:d:10.1007_s10018-022-00355-9
    DOI: 10.1007/s10018-022-00355-9
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