Cross-Sector

Social Cost of Carbon

The social cost of carbon (SC-GHG) is a monetary estimate of the societal damages caused by each additional ton of greenhouse gases emitted. It is used to quantify and monetize climate damages, representing the net social and economic cost of climate pollution to society. The cost per ton of carbon dioxide emissions typically accounts for socioeconomic factors, such as economic activity and related emissions; climate factors, such as projections related to temperature, sea level, and ocean acidification; and monetary damages from climatic changes.

The SC-GHG is often used in cost-benefit analyses of climate mitigation policies, including environmental, transportation, energy, and agricultural rulemakings, as well as electric utility resource planning, natural resource valuation, government procurement, and carbon pricing. Many states use the SC-GHG established by the federal Interagency Working Group on Social Cost of Greenhouse Gases for federal policymaking, however they are also able to set their own values.

States with Policy Enacted

In Progress

Partially Enacted

See States List

Key Resources

Report on the Social Cost of Greenhouse Gases: Estimates Incorporating Recent Scientific Advances

A technical report explaining the methodology underlying the new set of estimates for the social costs of carbon dioxide, methane, and nitrous oxide.

The Social Cost of Carbon: Options for Applying a Metric in Flux

A policy brief that explores options for different social cost of carbon estimates that states and other entities may use.

The Social Cost of Greenhouse Gases: A Guide for State Officials

A policy guide that explains why the social cost of greenhouse gases is a useful policy tool and how it can be applied for state decision-makers considering the societal and environmental impacts of GHG emissions.

States Using the Social Cost of Greenhouse Gases

A resource listing examples where states have used the social cost of greenhouse gases.
2024
Source:

Model States

California

The California Air Resources Board (CARB) must incorporate the social cost of carbon when adopting rules and regulations around emissions reductions.

2016
Establishing Policies

Colorado

The Colorado Public Utilities Commission must consider the social cost of carbon in utility resource planning.

2019
Establishing Policies

Nevada

Utilities must incorporate the social cost of carbon in utility resource planning.

Washington

Electrical and gas companies must incorporate the social cost of carbon in utility resource planning.

2019
Establishing Policies

The State Climate Policy Dashboard tracks only passed policies and does not include bills currently proposed in legislative sessions. The website is intended to illustrate the current status of policies for each state, as well as key resources and model states for each policy.

Much of the information contained in this database is derived from the public domain, with links to resources provided. The information provided is made available solely for general information purposes and does not constitute legal advice. Click here for full Terms of Use.

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