The Social Cost of Carbon with Economic and Climate Risks
By Yongyang Cai, T. Lontzek. Journal of Political Economy, 2019
314 citations recorded by the source corpus.
Uncertainty about future economic and climate conditions substantially affects the choice of policies for managing interactions between the climate and the economy. We develop a framework of dynamic stochastic integration of climate and economy, and show that the social cost of carbon is substantially affected by both economic and climate risks and is a stochastic process with significant variation. We examine a wide but plausible range of values for critical parameters with robust results and show that large-scale computing makes it possible to analyze policies in models substantially more complex and realistic than usually used in the literature.
Subfields: Economics and Econometrics, Global and Planetary Change, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/08fba7c98e5e910f349f48729910fb88d87b5e7b
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In Economics and Econometrics
- Richard S. J. Tol
- David Anthoff
- Gary W. Yohe
- Francesco Bosello
- Partha Dasgupta
- Roberto Roson
- J. Hamilton
- P. Link
In Global and Planetary Change
- Richard S. J. Tol
- David Anthoff
- Chris Hope
- Gary W. Yohe
- Partha Dasgupta
- Claudia Kemfert
- Michael Greenstone
- Joel B. Smith
In Renewable Energy, Sustainability and the Environment
- Richard S. J. Tol
- David Anthoff
- Gary W. Yohe
- Partha Dasgupta
- Robert J. Nicholls
- Katrin Rehdanz
- Roberto Roson
- P. Link
Citations in the corpus
- A social cost of carbon for (almost) every country (2019, background): “See Deryugina and Hsiang (2017) and Lemoine (2018) for the, rather strict, conditions under which weather variability is informative about climate change.”