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Temporal Aspects of the Social Cost of Greenhouse Gases

Author

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  • Thureson, Disa

    (Department of Business, Economics, Statistics and Informatics)

Abstract

The purpose of this study is to investigate the temporal aspects of the social cost of greenhouse gases (GHGs). I am particularly interested in the interaction between time of emissions, discounting, and type of GHG (where different GHGs have different atmospheric lifetimes). I show graphically how the social costs of GHGs depend on different parameter values and how the global damage potential for methane and sulfur hexafluoride evolves over time. I find that that the calculation period ultimately should be modeled to be consistent with the discount rate and that the “global-warming potential” concept is unsuitable for calculating of the social cost of GHGs other than carbon dioxide.

Suggested Citation

  • Thureson, Disa, 2012. "Temporal Aspects of the Social Cost of Greenhouse Gases," Working Papers 2012:3, Örebro University, School of Business, revised 01 Feb 2016.
    • Handle: RePEc:hhs:oruesi:2012_003
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    File URL: https://www.oru.se/globalassets/oru-sv/institutioner/hh/workingpapers/workingpapers2012/wp-3-2012-rev-2016.pdf
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    Cited by:

    1. Marten, Alex L. & Newbold, Stephen C., 2012. "Estimating the social cost of non-CO2 GHG emissions: Methane and nitrous oxide," Energy Policy, Elsevier, vol. 51(C), pages 957-972.

    More about this item

    Keywords

    Cost benefit analysis; Discount rates; Emissions pricing; Global warming potential;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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