Parsing the Social Cost of Carbon
February 23, 2022
The Biden administration is having to rethink an array of policy measures aimed at curbing climate change, after a federal judge blocked the government at least temporarily from using the so-called social cost of carbon in quantifying the benefits or costs of proposed actions. As this plays out, a little background might be in order. In Issues, R. David Simpson examines how the social cost of carbon is developed and how policymakers use this figure. He concludes that while debate may continue about its value, “the unknown and unknowable risks of climate change argue for caution.”