On Simple Rules for the Social Cost of Carbon

Abstract The objective of this paper is to assess the use simple rules for social cost carbon. It shown that several interrelated objections may apply. main issues are following. First, underlying theoretical models typically assume economy finds itself on a balanced growth path, implying addressing issue designing policies short run, which play role in actual policy debate, neglected. Second, some cases assumptions made regarding marginal damages high temperature or arge atmospheric $$CO_{2}$$ C O 2 stocks be incompatible with other made. Third, follow from an optimal model and associate particular year GDP year, but it not always acknowledged should rather than year. I also go into performance as compared first-best.