Costs, Confusion, and Climate Change

The article examines the use of the social cost of carbon (SCC) and marginal abatement cost (MAC) in climate policy, specifically addressing proposals to use MAC as an alternative to SCC in the United States. It argues that while MAC-based approaches are used in some jurisdictions like the U.K., MAC is not a substitute for the SCC. The text frames this discussion within the broader debate of prices versus quantities in policy formulation and the distinction between cost-benefit analysis and cost-effectiveness analysis.

• The social cost of carbon (SCC) serves as the primary tool in the United States for valuing greenhouse gas emissions reductions within cost-benefit analysis by estimating the monetary damages of climate change.
• Although some experts suggest using a "marginal abatement cost" (MAC) as an alternative to the SCC, and the U.K. has integrated MAC-based approaches into its policymaking, the MAC is not a substitute for the SCC.

APA

Livermore, J. G. A. M. (2022). Costs, Confusion, and Climate Change. Institute for Policy Integrity. https://policyintegrity.org/publications/detail/costs-confusion-and-climate-change

Chicago

Livermore, Justin Gundlach and Michael. Costs, Confusion, and Climate Change. Institute for Policy Integrity, 2022. https://policyintegrity.org/publications/detail/costs-confusion-and-climate-change.

Wikipedia

{{cite report |last1=Livermore |first1=Justin Gundlach and Michael |title=Costs, Confusion, and Climate Change |publisher=Institute for Policy Integrity |date=14 June 2022 |url=https://policyintegrity.org/publications/detail/costs-confusion-and-climate-change |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{livermore2022costs, author = {Livermore, Justin Gundlach and Michael}, title = {{Costs, Confusion, and Climate Change}}, institution = {Institute for Policy Integrity}, year = {2022}, month = jun, url = {https://policyintegrity.org/publications/detail/costs-confusion-and-climate-change}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }