This working paper by Brian C. Prest examines the social cost of carbon, which is a measure of the economic damage caused by greenhouse gas emissions. The author investigates the role of growth uncertainty, discounting, and the climate beta in determining the social cost of carbon. The paper finds that growth uncertainty and the climate beta have a significant impact on the social cost of carbon, while the effect of discounting is less clear. The author concludes that policymakers should take into account the role of these factors when setting carbon pricing policies.
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