More than Meets the Eye

This policy brief examines the calculation and application of the social cost of carbon (SCC) within the U.S. federal government's regulatory process, highlighting the role of economic assumptions and the impact of different SCC values on the stringency of climate regulations.

• The social cost of carbon (SCC) is a monetary estimate of the benefit gained by avoiding the damage caused by one additional metric ton of carbon dioxide (CO2) emitted into the atmosphere. It incorporates global societal costs including agricultural changes, economic dislocation, and health impacts.
• The U.S. federal government uses the SCC as part of a cost-benefit analysis for significant rules, a practice required by presidents since Ronald Reagan. The specific SCC value chosen acts as a policy decision that determines the potential cost ceiling for federal regulations aimed at curbing CO2.
• Different SCC values lead to different levels of regulatory action: a 2009 U.S. interagency team reported a range of $5 to $65 per tonne, where $5 would allow for very little regulation and $65 would allow for significantly more. In comparison, the United Kingdom uses a higher range of $41–$124 per tonne (central value of $83), which would justify more rigorous regulation from an economic standpoint.
• Calculating the SCC is problematic because it relies on complex economic models and judgment calls that extend beyond standard science or economics, often remaining invisible to stakeholders and policymakers.

APA

World Resources Institute (n.d.). More than Meets the Eye. https://www.wri.org/more-meets-eye

Chicago

World Resources Institute. More than Meets the Eye. n.d. https://www.wri.org/more-meets-eye.

Wikipedia

{{cite report |author=World Resources Institute |title=More than Meets the Eye |url=https://www.wri.org/more-meets-eye |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendmore, author = {{World Resources Institute}}, title = {{More than Meets the Eye}}, institution = {World Resources Institute}, url = {https://www.wri.org/more-meets-eye}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }