Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50101
Authors: 
Anthoff, David
Tol, Richard S. J.
Yohe, Gary W.
Year of Publication: 
2008
Series/Report no.: 
ESRI working paper 252
Abstract: 
The Stern Review reported a social cost of carbon of over $300/tC, calling for ambitious climate policy. We here conduct a systematic sensitivity analysis of this result on two crucial parameters: the rate of pure time preference, and the rate of risk aversion. We show that the social cost of carbon lies anywhere in between 0 and $120,000/tC. However, if we restrict these two parameters to match observed behavior, an expected social cost of carbon of $60/tC results. If we correct this estimate for income differences across the world, the social cost of carbon rises to over $200/tC.
Document Type: 
Working Paper

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