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Journal Articles FEEM Working Paper Year : 2012

What Social Cost of Carbon ? A Mapping of the Climate Debate


Given disparate beliefs about economic growth, technical change and damage caused by climate change, this paper starts with the seeming impossibility of determining a unique time profile of the social costs of carbon as a benchmark for climate negotiations and for infrastructure decisions that need to be made now in the absence of an inclusive international accord on climate policies. The paper demonstrates that determining a workable range of the social costs of carbon is however possible in a sequential decision-making framework that permits revising initial decisions in the light of new information. To do so, the paper exploits the results of a stochastic optimal control model run for more than 2000 scenarios that represent the set of beliefs presented about key uncertain parameters in the literature. The paper provides a heuristic mapping of the climate debate in the form of six "clubs of opinions" and shows the possibility of determining a range of social costs of carbon that might permit a compromise between the maximum range of "clubs" and those most likely to emerge in the future. Available at SSRN: http://ssrn.com/abstract=2087456 or http://dx.doi.org/10.2139/ssrn.2087456
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hal-00800865 , version 1 (14-03-2013)


  • HAL Id : hal-00800865 , version 1


Baptiste Perrissin Fabert, Patrice Dumas, Jean Charles Hourcade. What Social Cost of Carbon ? A Mapping of the Climate Debate. FEEM Working Paper, 2012, 2012.034. ⟨hal-00800865⟩
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