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Does the social Cost of Carbon Matter?: An Assessment of U.S. Policy

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  • Robert w. Hahn
  • Robert A. Ritz

Abstract

we evaluate a recent u.s. initiative to include the social cost of carbon (sCc) in regulatory decisions. To our knowledge, this paper provides the first systematic test of the extent to which applying the SCC has affected national policy. we examine all economically significant federal regulations since 2008, and obtain a surprising result: Putting a value on changes in carbon dioxide emissions does not generally affect the ranking of the preferred policy compared with the status quo. overall, we find little evidence that use of the SCC has affected u.s. policy choices to date. we offer an explanation related to the political economy of regulation.

Suggested Citation

  • Robert w. Hahn & Robert A. Ritz, 2013. "Does the social Cost of Carbon Matter?: An Assessment of U.S. Policy," Cambridge Working Papers in Economics 1346, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1346
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    References listed on IDEAS

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    1. SCC: much ado about nothing?
      by John Whitehead in Environmental Economics on 2013-12-10 16:58:32

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    Keywords

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    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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