Barrage, Lint, and William Nordhaus. Policies, projections, and the social cost of carbon Results from the DICE-2023 model. Proceedings of the National Academy of Sciences 121.13 (2024)

Objective:

• Calculate social cost of carbon

Case:

• Global

Methodology:

• Dynamic integrated model of climate and the economy: (DICE model)
  • Social welfare function
  • Production function
  • Quadratic function for demage
  • Abatement function
  • Carbon function and climate equations

Data Source

• In model

Findings:

• Current policy baseline implies increasing emissions in the coming decades

• Net present value of economic benefits around $120 trillion from the cost-benefit optimal policy
• Social cost of carbon is $66/tCO2 for 2020

Coding Reference:

• GAMS and Data