Discounting and climate policy

The social rate of discount is a crucial driver of the social cost of carbon (SCC), i.e. the expected present discounted value of marginal damages resulting from emitting one ton of carbon today. Policy makers should set carbon prices to the SCC using a carbon tax or a competitive permits market. Th...

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Bibliographic Details
Main Author: Van der Ploeg, R
Format: Working paper
Published: University of Oxford 2020