Discussion Paper

No. 2011-44 | October 28, 2011
The Time Evolution of the Social Cost of Carbon: An Application of Fund
(Published in Special Issue The Social Cost of Carbon)

Abstract

The authors estimate the growth rate of the social cost of carbon. This is an indication of the optimal rate of acceleration of greenhouse gas emission reduction policy over time. The authors find that the social cost of carbon increases by 1.3% to 3.9% per year, with a central estimate of 2.2%. Previous studies found an average rate of 2.3% and a range of 0.9 to 4.1%. The rate of increase of the social carbon depends on a range of factors, including the pure rate of time preference, the rate of risk aversion, equity weighting, the socioeconomic and emission scenarios, the climate sensitivity, dynamic vulnerability, and the curvature of the impact functions.

Paper submitted to the special issue
The Social Cost of Carbon
 

JEL Classification

Q54

Cite As

David Anthoff, Steven Rose, Richard S. J. Tol, and Stephanie Waldhoff (2011). The Time Evolution of the Social Cost of Carbon: An Application of Fund. Economics Discussion Papers, No 2011-44, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2011-44

Assessment



Comments and Questions


Anonymous - Referee Report
November 16, 2011 - 09:27

see attached file


Anonymous - Referee Report 2
December 07, 2011 - 14:02

See attached file


Robert E. Kopp - Editor's Report
December 20, 2011 - 16:32

see attached file