Estimating Benefits of Reducing Greenhouse Gas Emissions

Deck: 

Social Cost of Carbon

Fortnightly Magazine - August 2016
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

In Paris at the end of 2015, the world's governments decided to be more ambitious than ever on climate change. They set their sights on a goal of limiting the increase in average global temperature to well below two degrees Celsius.

"Variation in modeling results in substantial differences in size, location, type, and even sign of future damages." – Steven Rose

As an initial contribution to the long-term climate management objective, each of one hundred eighty-nine countries offered a pledge. The countries committed to constrain their greenhouse gas emissions over the next ten to fifteen years.

In this policy context, thirty-six dollars turns out to be an important number. It is an estimate of future global climate damages from emitting one metric ton of carbon dioxide today, as estimated by the U.S. Government.1

Whether releasing carbon dioxide from burning fuel in cars, trucks, or tractors. Whether from burning coal or natural gas for electricity, heat, or work. Whether from releasing carbon dioxide from trees or soils when using land. The U.S. Government's primary estimate of global damages for each metric ton emitted is thirty-six dollars. With a range of eleven to one hundred-five dollars associated with different discount rates and likelihood.2

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.