Comprehensive evidence implies a higher social cost of CO2.

The social cost of carbon dioxide (SC-CO2) measures the monetized value of the damages to society caused by an incremental metric tonne of CO2 emissions and is a key metric informing climate policy. Used by governments and other decision-makers in benefit-cost analysis for over a decade, SC-CO2 estimates draw on climate science, economics, demography and other disciplines. However, a 2017 report by the US National Academies of Sciences, Engineering, and Medicine1 (NASEM) highlighted that current SC-CO2 estimates no longer reflect the latest research. The report provided a series of recommendations for improving the scientific basis, transparency and uncertainty characterization of SC-CO2 estimates. Here we show that improved probabilistic socioeconomic projections, climate models, damage functions, and discounting methods that collectively reflect theoretically consistent valuation of risk, substantially increase estimates of the SC-CO2. Our preferred mean SC-CO2 estimate is $185 per tonne of CO2 ($44-$413 per tCO2: 5%-95% range, 2020 US dollars) at a near-term risk-free discount rate of 2%, a value 3.6 times higher than the US government's current value of $51 per tCO2. Our estimates incorporate updated scientific understanding throughout all components of SC-CO2 estimation in the new open-source Greenhouse Gas Impact Value Estimator (GIVE) model, in a manner fully responsive to the near-term NASEM recommendations. Our higher SC-CO2 values, compared with estimates currently used in policy evaluation, substantially increase the estimated benefits of greenhouse gas mitigation and thereby increase the expected net benefits of more stringent climate policies.

Climate change damages to Alaska public infrastructure and the economics of proactive adaptation.

Climate change in the circumpolar region is causing dramatic environmental change that is increasing the vulnerability of infrastructure. We quantified the economic impacts of climate change on Alaska public infrastructure under relatively high and low climate forcing scenarios [representative concentration pathway 8.5 (RCP8.5) and RCP4.5] using an infrastructure model modified to account for unique climate impacts at northern latitudes, including near-surface permafrost thaw. Additionally, we evaluated how proactive adaptation influenced economic impacts on select infrastructure types and developed first-order estimates of potential land losses associated with coastal erosion and lengthening of the coastal ice-free season for 12 communities. Cumulative estimated expenses from climate-related damage to infrastructure without adaptation measures (hereafter damages) from 2015 to 2099 totaled $5.5 billion (2015 dollars, 3% discount) for RCP8.5 and $4.2 billion for RCP4.5, suggesting that reducing greenhouse gas emissions could lessen damages by $1.3 billion this century. The distribution of damages varied across the state, with the largest damages projected for the interior and southcentral Alaska. The largest source of damages was road flooding caused by increased precipitation followed by damages to buildings associated with near-surface permafrost thaw. Smaller damages were observed for airports, railroads, and pipelines. Proactive adaptation reduced total projected cumulative expenditures to $2.9 billion for RCP8.5 and $2.3 billion for RCP4.5. For road flooding, adaptation provided an annual savings of 80-100% across four study eras. For nearly all infrastructure types and time periods evaluated, damages and adaptation costs were larger for RCP8.5 than RCP4.5. Estimated coastal erosion losses were also larger for RCP8.5.

Projecting future costs to U.S. electric utility customers from power interruptions.

This analysis integrates regional models of power system reliability, output from atmosphere-ocean general circulation models, and results from the Interruption Cost Estimate (ICE) Calculator to project long-run costs to electric utility customers from power interruptions under different future severe weather and electricity system scenarios. We discuss the challenges when attempting to model long-run costs to utility customers including the use of imperfect metrics to measure severe weather. Despite these challenges, initial findings show that discounted cumulative customer costs, through the middle of the century, could range from $1.5-$3.4 trillion ($2015) without aggressive undergrounding of the power system and increased utility operations and maintenance (O&M) spending and $1.5-$2.5 trillion with aggressive undergrounding and increased spending. By the end of the century, cumulative customer costs could range from $1.9-$5.6 trillion (without aggressive undergrounding and increased spending) and $2.0-$3.6 trillion (with aggressive undergrounding and increased spending). We find that, in some scenarios, aggressive undergrounding of distribution lines and increased O&M spending is not always cost-effective. We conclude by identifying important topics for follow-on research, which have the potential to improve the cost estimates of this model.

Climate Change Impacts on Harmful Algal Blooms in U.S. Freshwaters: A Screening-Level Assessment.

Cyanobacterial harmful algal blooms (CyanoHABs) have serious adverse effects on human and environmental health. Herein, we developed a modeling framework that predicts the effect of climate change on cyanobacteria concentrations in large reservoirs in the contiguous U.S. The framework, which uses climate change projections from five global circulation models, two greenhouse gas emission scenarios, and two cyanobacterial growth scenarios, is unique in coupling climate projections with a hydrologic/water quality network model of the contiguous United States. Thus, it generates both regional and nationwide projections useful as a screening-level assessment of climate impacts on CyanoHAB prevalence as well as potential lost recreation days and associated economic value. Our projections indicate that CyanoHAB concentrations are likely to increase primarily due to water temperature increases tempered by increased nutrient levels resulting from changing demographics and climatic impacts on hydrology that drive nutrient transport. The combination of these factors results in the mean number of days of CyanoHAB occurrence ranging from about 7 days per year per waterbody under current conditions, to 16-23 days in 2050 and 18-39 days in 2090. From a regional perspective, we find the largest increases in CyanoHAB occurrence in the Northeast U.S., while the greatest impacts to recreation, in terms of costs, are in the Southeast.

The Social Costs of Hydrofluorocarbons and the Large Climate Benefits from their Expedited Phasedown.

Hydrofluorocarbons are a potent greenhouse gas, yet there remains a lack of quantitative estimates of their social cost. The present study addresses this gap by directly calculating the social cost of hydrofluorocarbons (SC-HFCs) using perturbations of exogenous inputs to integrated assessment models. We first develop a set of direct estimates of the SC-HFCs using methods currently adopted by the United States Government, and then derive updated estimates that incorporate recent advances in climate science and economics. We compare our estimates with commonly used social cost approximations based on global warming potentials to show that the latter is a poor proxy for direct calculation of hydrofluorocarbon emissions impacts using IAMs. Applying our SC-HFCs to the Kigali Amendment, a global agreement to phase down HFCs, we estimate that it provides $37 trillion (2020USD) in climate benefits over its lifetime. Expediting the phasedown could increase the estimated climate benefits to $41 trillion (2020USD).

Equity weighting increases the social cost of carbon.

New government guidelines could transform benefit-cost analysis of US climate policy.