What is the Social Cost of Carbon Pollution?


How do we define climate pollution’s cost to society? (Elizabeth Shogren, DC Dispatch Jan. 27, 2016)

Also discussed here: Evidence on the Impact of Sustained Exposure to Air Pollution on Life Expectancy from China’s Huai River Policy (53 page pdg, , Yuyu Chen, Avraham Ebenstein, Michael Greenstone and Hongbin Li, Massachusetts Institute of Technology, Department of Economics, Working Paper Series, Jun.20, 2013)

And here: Americans Are Living Longer, Thanks to the Clean Air Act (Melissa C. Lott, Scientific American, Jan. 31, 2016
Today we review a paper by an Interagency Working Group on the Social Cost of Carbon (United States Government) which estimated the economic benefit of carbon pollution reductions, taking into account future discount rates and, using a model, the atmospheric impact of a metric ton of carbon, and how it affects earth temperatures in terms of a range of impacts such stresses to agriculture and increased need for air conditioning etc. Estimated costs to 2050 range from $11 (at a predicted 5% average rate) to $221(at 3% rate) per metric ton of CO2. The opposite side of this issue is the cost of imposing a government policy which results in damages to the public.

 

One example of air pollution policy yielding benefits is the Clean Air Act in the USA which has produced 336 million life-years since 1970. Another example from Northern China (with a 500M population, greater than the entire USA) where an earlier policy (which was reversed in 2007) to burn coal to support industry resulted in health impacts and a loss of 2.5 million life years of life expectancy for the region- or 5.5 years per person. The need to consider this direct cost and benefit, as well as the incentive value of carbon pricing to encourage renewable energy use, is obvious.

social cost poll

To see Key Quotes and Links to key reports about this post, click HERE

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