The social cost of carbon provides an estimate of the economic damage caused by carbon emissions. A climate economist tells how it's calculated.

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One of the most hotly debated issues in climate policy is the value of the social cost of carbon, which is an estimate of the damage that will come from releasing carbon dioxide into the atmosphere. The social cost of carbon is a useful measure to help us understand the price that should be placed on carbon today to limit carbon dioxide emissions, and minimize the climate-related damages that future generations will face.

Climate economist Gilbert Metcalf explains how the social cost of carbon is calculated, and looks at the factors that economists take into account in arriving at a value. He also discusses why the value of the social cost of carbon is so contentious, and why the cost estimates accepted by the Trump and Obama administrations diverge so widely.

Gilbert Metcalf is a professor of economics at Tufts University and a research associate at the National Bureau of Economic Research. His work focuses on taxation, energy, and environmental economics.

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The social cost of carbon provides an estimate of the economic damage caused by carbon emissions. A climate economist tells how it&apos;s calculated.---One of the most hotly debated issues in climate policy is the value of the social cost of carbon, which is an estimate of the damage that will come from releasing carbon dioxide into the atmosphere. The social cost of carbon is a useful measure to help us understand the price that should be placed on carbon today to limit carbon dioxide emissions, and minimize the climate-related damages that future generations will face.Climate economist Gilbert Metcalf explains how the social cost of carbon is calculated, and looks at the factors that economists take into account in arriving at a value. He also discusses why the value of the social cost of carbon is so contentious, and why the cost estimates accepted by the Trump and Obama administrations diverge so widely.Gilbert Metcalf is a professor of economics at Tufts University and a research associate at the National Bureau of Economic Research. His work focuses on taxation, energy, and environmental economics.Related ContentThe Essential Role of Negative Emissions in Getting to Carbon Neutral <a href='https://kleinmanenergy.upenn.edu/policy-digests/essential-role-negative-emissions-getting-carbon-neutral'>https://kleinmanenergy.upenn.edu/policy-digests/essential-role-negative-emissions-getting-carbon-neutral</a>Robust Carbon Markets: Rethinking Quantities and Prices in Carbon Pricing <a href='https://kleinmanenergy.upenn.edu/policy-digests/robust-carbon-markets'>https://kleinmanenergy.upenn.edu/policy-digests/robust-carbon-markets</a>Why Americans Want a Carbon Tax, But Won’t Support One at the Polls <a href='https://kleinmanenergy.upenn.edu/energy-policy-now/why-americans-want-carbon-tax-wont-support-one-polls'>https://kleinmanenergy.upenn.edu/energy-policy-now/why-americans-want-carbon-tax-wont-support-one-polls</a>

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by the Kleinman Center for Energy Policy at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

Energy Policy Now

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by <a href="https://kleinmanenergy.upenn.edu/podcast/">the Kleinman Center for Energy Policy</a> at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

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