Which one of the following statements best describes the term ‘Social Cost of Carbon’? It is a measure, in monetary value, of the
Correct Answer A. long-term damage done by a tonne of CO2 emissions in a given year.
Explanation
In environmental economics, the Social Cost of Carbon (SCC) is defined as the monetized estimate of the long-term economic damages caused by emitting one additional metric tonne of carbon dioxide (CO2) into the atmosphere in a given year:
– It attempts to quantify global impacts including changes in net agricultural productivity, human health risks, property damage from increased flood risk, and changes in energy system costs.
– The metric allows policymakers to perform cost-benefit analysis on climate change mitigation policies.
Therefore, the correct description is Option A.