The Social Cost of Carbon

The Social Cost of Carbon (SCC) is an estimate of the economic damages caused by emitting one additional ton of carbon dioxide into the atmosphere. It reflects the monetary value of negative impacts like climate change effects—such as extreme weather, health issues, and environmental degradation—over time. Essentially, it helps policymakers understand the true cost of carbon emissions, encouraging actions that reduce emissions now to avoid greater costs in the future. The SCC is a key tool for integrating environmental impacts into economic decision-making to promote sustainable and responsible choices.