On 50 Billion Tons of Greenhouse Gas (annually)
The following are recent comments by the U.S government and others about the need to factor in the "social cost of carbon" in greenhouse gas planning.
From U.S. White House (Jan. 20, 2021)
“It is essential that agencies capture the full costs of greenhouse gas emissions as accurately as possible ...
“An accurate social cost [of changes in agricultural productivity, human health, property damage from floods, etc.] is essential... when conducting cost-benefit analyses of regulatory and other actions.”
From “Getting the Social Cost of Carbon Right” (Feb 15, 2021) by Nicholas Stern (London School of Economics) and Joseph Stiglitz (Nobel laureate - economics)
“The social cost of carbon (SCC) gives policymakers and government agencies a basis for evaluating the benefits of public projects and regulations designed to curb CO2 emissions ...
“The way the Obama administration did it was deeply flawed … the likely SCC would be closer to $100 per ton by 2030 than the $50 per ton estimated by the Obama administration ..."
From “Eight priorities for calculating the social cost of carbon" (Nature - Feb. 19, 2021) by researchers at NYU, U. of Maryland, London School of Economics, Yale, Harvard, and others.
"Climate science and economics have advanced since 2010 … researchers can now link many more extreme weather events directly to climate change, and new econometric techniques help to quantify dollar impacts.
“Economic analysis is at the heart of the regulatory process in the U.S. and will therefore play a major role in shaping and informing the ambitious climate goals ..."
Global Greenhouse Gas Emission by Sector (2016)
Source: OurWorldinData.org, ClimateWatch, World Resource Institute
OUR TAKE
The "social cost of carbon" can be a powerful tool in developing public policy approaches. To gain acceptance, their pricing models need to be easily understood.
Clear guidance from the US government can influence businesses, state and local governments, and international partners. The actions of citizens/consumers will be critical in shaping emission mitigation efforts as well.
The impacts of climate change (business/property losses, health risks, etc.) will 1) be felt across many sectors of the economy and 2) drive adaptative and innovative mitigation approaches.