Jeroen van den Bergh and Wouter Botzen publish in NATURE CLIMATE CHANGE about the social cost of carbon

An article published today by Jeroen van den Bergh and Wouter Botzen in NATURE CLIMATE CHANGE critically evaluates estimates of the social cost of carbon and proposes a lower bound to the real cost of CO2 emissions. Many studies have estimated the social cost of carbon (SCC). We critically evaluate SCC estimates, focusing on omitted cost categories, discounting, uncertainties about damage costs and risk aversion. This allows for the calculation of a lower bound to the SCC, namely US$125 per ton CO2. Dominant SCC values turn out to be gross underestimates, notably, but not only, for a low discount rate. The validity of this lower bound is supported by a precautionary approach to reflect risk aversion against extreme climate change. The results justify a more stringent climate policy than is suggested by most influential past studies. The full article can be found here: http://www.nature.com/nclimate/journal/v4/n4/full/nclimate2135.html