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Urban and Non-Urban Contributions to the Social Cost of Carbon

Author

Listed:
  • Francisco

    (Instituto de Ciencias de la Atmósfera, Universidad Nacional Autónoma de México, Mexico City 04510, México, Institute for Environmental Studies (IVM) Vrije Universiteit, Amsterdam 1081 HV, the Netherlands Programa de Investigación en Cambio Climático Universidad Nacional Autónoma de México, Mexico City,Mexico)

  • Veronica Lupi

    (Department of Institute for Environmental Studies (IVM), Vrije Universiteit, Amsterdam 1081 HV, the Netherlands, Fondazione Eni Enrico Mattei, Milan)

  • Wouter Botzen

    (Department of Institute for Environmental Studies (IVM), Vrije Universiteit, Amsterdam 1081 HV, the Netherlands)

  • Richard S.J. Tol

    (Department of Economics, University of Sussex, B91 NSL Falmer, United Kingdom)

Abstract

The social cost of carbon (SCC) serves as a concise gauge of climate change's economic impact, often reported at the global and country level. SCC values are disproportionately high for less-developed, populous countries. Assessing the contributions of urban and non-urban areas to the SCC can provide additional insights for climate policy. Cities are essential for defining global emissions, influencing warming levels and associated damages. High exposure and concurrent socioenvironmental problems exacerbate climate change risks in cities. Using a spatially explicit integrated assessment model, the SCC is estimated at USD$137-USD$579/tCO2, rising to USD$262-USD$1,075/tCO2 when including urban heat island (UHI) warming. Urban SCC dominates, with both urban exposure and the UHI contributing significantly. A permanent 1% reduction of the UHI in urban areas yields net present benefits of USD$484-USD$1,562 per urban dweller. Global cities have significant leverage and incentives for a swift transition to a low-carbon economy, and for reducing local warming.

Suggested Citation

  • Francisco & Veronica Lupi & Wouter Botzen & Richard S.J. Tol, 2024. "Urban and Non-Urban Contributions to the Social Cost of Carbon," Working Paper Series 0424, Department of Economics, University of Sussex Business School.
    • Handle: RePEc:sus:susewp:0424
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    References listed on IDEAS

    as
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    2. Lucas Chancel, 2022. "Global carbon inequality over 1990–2019," Nature Sustainability, Nature, vol. 5(11), pages 931-938, November.
    3. Lucas Chancel, 2022. "Global carbon inequality over 1990–2019," Post-Print halshs-04157767, HAL.
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