IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2401.00919.html
   My bibliography  Save this paper

Urban and non-urban contributions to the social cost of carbon

Author

Listed:
  • Francisco Estrada
  • Veronica Lupi
  • Wouter Botzen
  • Richard S. J. Tol

Abstract

The social cost of carbon (SCC) serves as a concise gauge of climate change's economic impact, often reported at the global and country level. SCC values are disproportionately high for less-developed, populous countries. Assessing the contributions of urban and non-urban areas to the SCC can provide additional insights for climate policy. Cities are essential for defining global emissions, influencing warming levels and associated damages. High exposure and concurrent socioenvironmental problems exacerbate climate change risks in cities. Using a spatially explicit integrated assessment model, the SCC is estimated at USD$137-USD$579/tCO2, rising to USD$262-USD$1,075/tCO2 when including urban heat island (UHI) warming. Urban SCC dominates, with both urban exposure and the UHI contributing significantly. A permanent 1% reduction of the UHI in urban areas yields net present benefits of USD$484-USD$1,562 per urban dweller. Global cities have significant leverage and incentives for a swift transition to a low-carbon economy, and for reducing local warming.

Suggested Citation

  • Francisco Estrada & Veronica Lupi & Wouter Botzen & Richard S. J. Tol, 2024. "Urban and non-urban contributions to the social cost of carbon," Papers 2401.00919, arXiv.org.
    • Handle: RePEc:arx:papers:2401.00919
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2401.00919
    File Function: Latest version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lucas Chancel, 2022. "Global carbon inequality over 1990–2019," Nature Sustainability, Nature, vol. 5(11), pages 931-938, November.
    2. Lucas Chancel, 2022. "Global carbon inequality over 1990–2019," PSE-Ecole d'économie de Paris (Postprint) halshs-04157767, HAL.
    3. Lucas Chancel, 2022. "Global carbon inequality over 1990–2019," Post-Print halshs-04157767, HAL.
    4. Glen P. Peters & Robbie M. Andrew & Josep G. Canadell & Sabine Fuss & Robert B. Jackson & Jan Ivar Korsbakken & Corinne Le Quéré & Nebojsa Nakicenovic, 2017. "Key indicators to track current progress and future ambition of the Paris Agreement," Nature Climate Change, Nature, vol. 7(2), pages 118-122, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhao, Congyu & Jia, Rongwen & Dong, Kangyin, 2023. "Does financial inclusion achieve the dual dividends of narrowing carbon inequality within cities and between cities? Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    2. Chao, Chi-Chur & Trinh, Cong Tam & Nguyen, Xuan, 2023. "Carbon neutrality and wage inequality in a sustainable economy: New evidence from business dynamism," Economic Modelling, Elsevier, vol. 127(C).
    3. Kostov, Lyuboslav, 2023. "Modern inequalities: a review of the literature," SEER Journal for Labour and Social Affairs in Eastern Europe, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 26(1), pages 81-94.
    4. Mahalik, Mantu Kumar & Patel, Gupteswar & Sahoo, Bimal Kishore & Rahman, Mohammad Mafizur, 2023. "Impact of income inequality on renewable energy demand in south Asian economies," Energy Policy, Elsevier, vol. 180(C).
    5. Azad, Rohit & Chakraborty, Shouvik, 2023. "An Indian Green Deal," Ecological Economics, Elsevier, vol. 209(C).
    6. Mills, Evan, 2023. "Green Remittances: A novel form of sustainability finance," Energy Policy, Elsevier, vol. 176(C).
    7. Lévay, Petra Zsuzsa & Goedemé, Tim & Verbist, Gerlinde, 2023. "Income and expenditure elasticity of household carbon footprints. Some methodological considerations," Ecological Economics, Elsevier, vol. 212(C).
    8. Marco Grasso & J. David Tàbara, 2019. "Towards a Moral Compass to Guide Sustainability Transformations in a High-End Climate Change World," Sustainability, MDPI, vol. 11(10), pages 1-16, May.
    9. Larry Hughes & Moniek Jong & Zach Thorne, 2021. "(De)coupling and (De)carbonizing in the economies and energy systems of the G20," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 5614-5639, April.
    10. Zheng, Jiali & Mi, Zhifu & Coffman, D'Maris & Milcheva, Stanimira & Shan, Yuli & Guan, Dabo & Wang, Shouyang, 2019. "Regional development and carbon emissions in China," Energy Economics, Elsevier, vol. 81(C), pages 25-36.
    11. Mauricio Marrone & Martina K Linnenluecke, 2020. "Interdisciplinary Research Maps: A new technique for visualizing research topics," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-16, November.
    12. Demetrio Guzzardi & Elisa Palagi & Tommaso Faccio & Andrea Roventini, 2023. "In search of lost time: An ensemble of policies to restore fiscal progressivity and address the climate challenge," LEM Papers Series 2023/28, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    13. Marc Germain, 2022. "Limits to green growth [Des limites à la croissance verte]," Working Papers hal-03913177, HAL.
    14. P. A. Turner & C. B. Field & D. B. Lobell & D. L. Sanchez & K. J. Mach, 2018. "Unprecedented rates of land-use transformation in modelled climate change mitigation pathways," Nature Sustainability, Nature, vol. 1(5), pages 240-245, May.
    15. Dafermos, Yannis & Nikolaidi, Maria & Galanis, Giorgos, 2018. "Climate Change, Financial Stability and Monetary Policy," Ecological Economics, Elsevier, vol. 152(C), pages 219-234.
    16. Ponce de Leon Barido, Diego & Suffian, Stephen & Kammen, Daniel M. & Callaway, Duncan, 2018. "Opportunities for behavioral energy efficiency and flexible demand in data-limited low-carbon resource constrained environments," Applied Energy, Elsevier, vol. 228(C), pages 512-523.
    17. Liu, Xiao & Hang, Ye & Wang, Qunwei & Chiu, Ching-Ren & Zhou, Dequn, 2022. "The role of energy consumption in global carbon intensity change: A meta-frontier-based production-theoretical decomposition analysis," Energy Economics, Elsevier, vol. 109(C).
    18. Md. Afzal Hossain & Jean Engo & Songsheng Chen, 2021. "The main factors behind Cameroon’s CO2 emissions before, during and after the economic crisis of the 1980s," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(3), pages 4500-4520, March.
    19. Fanning, Andrew L. & Hickel, Jason, 2023. "Compensation for atmospheric appropriation," LSE Research Online Documents on Economics 119717, London School of Economics and Political Science, LSE Library.
    20. Alessandro Franco & Lorenzo Miserocchi & Daniele Testi, 2023. "Energy Indicators for Enabling Energy Transition in Industry," Energies, MDPI, vol. 16(2), pages 1-18, January.

    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2401.00919. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.