Working Papers, School of Business, Örebro University
Temporal Aspects of the Social Cost of Greenhouse Gases
Abstract: The purpose of this study is to investigate the temporal
aspects of the social cost of greenhouse gases (GHGs). I am particularly
interested in the interaction between time of emissions, discounting, and
type of GHG (where different GHGs have different atmospheric lifetimes). I
show graphically how the social costs of GHGs depend on different parameter
values and how the global damage potential for methane and sulfur
hexafluoride evolves over time. I find that that the calculation period
ultimately should be modeled to be consistent with the discount rate and
that the “global-warming potential” concept is unsuitable for calculating
of the social cost of GHGs other than carbon dioxide.
Keywords: Cost benefit analysis; Discount rates; Emissions pricing; Global warming potential; (follow links to similar papers)
JEL-Codes: Q54; (follow links to similar papers)
14 pages, February 27, 2012, Revised February 1, 2016
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