SCC

Question 1

SCC

Answer 1

the estimate of monetized damages due to annual (incremental increases) in carbon emissions

Question 2

scc is useful for

Answer 2

policy analysis
carbon taxes
emission credits
law
utility updates

Question 3

president SCC setup

Answer 3

trump- 5 dollars per ton
democrats: 50 dollars per ton
EPA: 190 dollars per ton

Question 4

types of damages included in scc

Answer 4

value of ecosystem services
property damage
change in crop yields
health costs

Question 5

steps to calculate scc

Answer 5

1. calculate baseline values and associated year-by-year values for changing variables.
   baseline: emissions, gdp, population
   year by year: temp change, consumption
2. for year T, apply a shock value of additional emissions. then, calculate new year-by-year vals based on new emission for T.
3. find yearly marginal damage =
   per capita consumption normal - per capital consumption inc. emissions
4. apply discount value to the year by year marginal damages and then find NPV. your NPV = SCC.

Question 6

SCC uncertainties

Answer 6

• damage function: how to quantify damage from higher global temps
• climate sensitivity: how co2 increases temps
• future GDP and population
• scope and standing: whose damages should be in federal damage functions
• discount rate: unknown for future

Question 7

descriptive approach

Answer 7

• positive analysis
• inferring the discount rate from market rates of return (aka people’s actual choices in markets)

Question 8

prescriptive approach

Answer 8

• normative analysis
• analyst chooses what to incorporate into policy evaluation
• choose how welfare for future should be weighed against the present to be ethical

Question 9

RFF - SP Graph

Answer 9

resources for the future socioeconomic projections graph
graph compares years vs global population predictions, or GDP GROWTH, or emissions