CHECKING THE PRICE TAG ON CATASTROPHE: THE SOCIAL COST OF CARBON UNDER NON-LINEAR CLIMATE RESPONSE

Research into the social cost of carbon emissions — the marginal social damage from a ton of emitted carbon — has tended to focus on “best guess” scenarios. Such scenarios generally ignore the potential for low-probability, high-damage events, which are critically important to determining optimal climate policy. This paper uses the FUND integrated assessment model to investigate the influence of three types of non-linear climate responses on the social cost of carbon: the collapse of the thermohaline circulation; the dissociation of oceanic methane hydrates; and climate sensitivities above “best guess” levels. We find that incorporating these impacts can increase the social cost of carbon by a factor of 20. Furthermore, our results suggest that the exclusive focus on thermohaline circulation collapse in the non-linear climate response literature is unwarranted, because other potential non-linear climate responses appear to be significantly more costly.climate change, catastrophe, non-linearity, impacts

Checking the price tag on catastrophe: The social cost of carbon under non-linear climate response. ESRI WP392, June 2011

Research into the social cost of carbon emissions — the marginal social damage from a tonne of emitted carbon — has tended to focus on “best guess” scenarios. Such scenarios generally ignore the potential for low-probability, high- damage events, which are critically important to determining optimal climate policy. This paper uses the FUND integrated assessment model to investigate the influence of three types of low-probability, high-impact climate responses on the social cost of carbon: the collapse of the Atlantic Ocean Meridional Overturning Circulation; large scale dissociation of oceanic methane hydrates; and climate sensitivities above “best guess” levels. We find that incorporating these events can increase the social cost of carbon by a factor of over 3

Checking the price tag on catastrophe: The social cost of carbon under non-linear climate response

Research into the social cost of carbon emissions - the marginal social damage from a tonne of emitted carbon - has tended to focus on best guess scenarios. Such scenarios generally ignore the potential for low-probability, high-damage events, which are critically important to determining optimal climate policy. This paper uses the FUND integrated assessment model to investigate the influence of three types of low-probability, high-impact climate responses on the social cost of carbon: the collapse of the Atlantic Ocean Meridional Overturning Circulation; large scale dissociation of oceanic methane hydrates; and climate sensitivities above best guess levels. We find that incorporating these events can increase the social cost of carbon by a factor of over 3

Clashing strategic cultures and climate policy

Kagan (2002) argues that the different responses of Europeans and Americans to major strategic and international challenges is not simply due to differences in the current administrations, but rather results from (i) a power gap and (ii) differing ideologies. This article applies Kagan's theory to climate policy, employing terrorism policy as a point of comparison. We argue that the power gap between Europe and America is unable to explain the differences in climate policy. In contrast, the ideology gap may indeed have some explanatory value. Furthermore, we argue that one additional feature is critical - the costs and benefits imposed by climate change and terrorism prevention, and the process by which such costs and benefits are evaluated, differ between America and Europe

Checking the Price Tag on Catastrophe: The Social Cost of Carbon Under Non-linear Climate Response

Research into the social cost of carbon emissions ? the marginal social damage from a tonne of emitted carbon ? has tended to focus on "best guess" scenarios. Such scenarios generally ignore the potential for low-probability, high-damage events, which are critically important to determining optimal climate policy. This paper uses the FUND integrated assessment model to investigate the influence of three types of low-probability, high-impact climate responses on the social cost of carbon: the collapse of the Atlantic Ocean Meridional Overturning Circulation; large scale dissociation of oceanic methane hydrates; and climate sensitivities above "best guess" levels. We find that incorporating these events can increase the social cost of carbon by a factor of over 3.Social cost of carbon/cost/scenarios/Climate policy/Policy

Comments on the U.S. Social Cost of Carbon

Our organizations respectfully submit these comments regarding EPA’s use of the Interagency Working Group’s valuation of the Social Cost of Carbon to assess the costs and benefits of its greenhouse gas emissions guidelines for existing fossil fuel-fired power plants (the Clean Power Plan). Our organizations have separately and independently submitted other comments regarding the proposed emissions guidelines themselves. We strongly affirm that the current Social Cost of Carbon (SCC) values are sufficiently robust and accurate to continue to be the basis for regulatory analysis going forward. As demonstrated below, if anything, current values are significant underestimates of the SCC. As economic and scientific research continues to develop in the future, the value should be revised, and we also offer recommendations for that future revision