At What Cost? Examining the Social Cost of Carbon

The social cost of carbon, SCC, is a metric used to value the damage caused by emitting 1 ton of carbon dioxide into the atmosphere in a year. It provides a consistent value for all federal agencies to use for their cost-benefit analysis on regulatory efforts that reduce carbon dioxide emissions. The Government Accountability Office and independent peer review by the National Academy of Sciences have validated it many times. Federal courts have also upheld that the methodology used to develop the SCC is based on robust science and sound economic analysis. The social cost of carbon is not a product of a single President, a single scientific study, or a single legal action. It is rooted in overwhelming scientific consensus on climate change, an effort spanning 30 years from both the executive and judicial branches of the Federal Government. These factors, coupled with a transparent development process and strong economic analysis, form the basis of the SCC metric that has been used in at least 79 federal regulations, including fuel economy standards for vehicles, energy efficiency measures for home appliances, and regulations such as the Clean Power Plan.