A journal article by William Nordhaus on the critical role of the social cost of carbon (SCC) in determining climate change economics and policies. This paper estimates the SCC using the Dynamic Integrated model of Climate and the Economy (DICE model).
Students will understand the application of the DICE model to calculate the SCC in the development of climate change policies. They will also learn how the SCC is central in climate change regulatory policies.
Use this tool to help your students find answers to:
- “The most important single economic concept in the economics of climate change is the social cost of carbon (SCC).” Discuss.
- Describe the DICE model and its application in determining the SCC.
- How does the SCC affect the economic growth of a country? Explain through examples
About the Tool
|Tool Name||Revisiting the social cost of carbon|
|Topic(s) in Discipline||Social Cost of Carbon, DICE model, Climate Change Policy, Climate Economics, Economic Policy, Econometrics|
|Climate Topic||Energy, Economics and Climate Change|
|Type of Tool||Reading|
|Grade Level||Undergraduate, Graduate|
|Developed by||William D. Nordhaus (Yale University)|
|Hosted at||Proceedings of the National Academy of Sciences of the United States of America|