In Focus: The US Environmental Protection Agency’s New Social Cost of Carbon

Earlier this month, the US Environmental Protection Agency announced an updated estimate of the social cost of carbon. The new estimate asserts that each ton of carbon dioxide emitted into the atmosphere costs society $190—almost four times higher than the government-wide estimate of $51 per ton. The new estimate will be used to help determine the benefits and costs of the agency’s rules and regulations going forward. Brian C. Prest, a fellow at Resources for the Future (RFF) and director of RFF’s Social Cost of Carbon Initiative, shares his thoughts on the new estimate and how it may inform future regulations.