NOT SO GREEN  |  Not yet Born

By Steven Keeler | Mar 17, 2017
Source: http://www.pnas.org/content/114/7/1518.full

 

According to a 2013 government update on the SCC ( Social Cost of Carbon ), by applying a discount rate of 5 percent, the cost of carbon in 2020 comes out to $12 a ton; using a 2.5 percent rate, it’s $65. A 7 percent discount rate, which has been used by the EPA for other regulatory analysis, could actually lead to a negative carbon cost, which would seem to imply that carbon emissions are beneficial Once you start to dig into how the numbers are constructed, I cannot fathom how anyone could think it has any basis in reality, says Daniel Simmons, vice president for policy at the American Energy Alliance and a member of the Trump transition team focusing on the Energy Department. “ Depending on what the discount rate is, you go from a large number to a negative number, with some very reasonable assumptions. ”


READ MORE



BACKGROUND

 

Comments (0)
If you wish to comment, please login.