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Social Cost of Carbon: A Tool to Measure the Economic Impact of Carbon Emissions and Guide Decision-Making in Climate Adaptation

October 17, 2023 | Earth.org

Climate change, propelled by factors like fossil fuels and deforestation, has far-reaching socioeconomic impacts. Beyond rising temperatures, changing precipitation patterns, and extreme weather events contribute to staggering economic losses. Climate change modeling, though uncertain, is addressed through physical impact and economic models. The Social Cost of Carbon (SCC), a vital metric in climate economics, quantifies the economic costs of emitting an additional ton of carbon dioxide. However, SCC estimation is challenging due to uncertainty, reliant on damage functions and sensitive to climate variables. Climate change imposes costs on healthcare, property damage, and infrastructure. Adapting to climate change requires strategic investments in resilient infrastructure, early warning systems, and healthcare preparedness, offering long-term economic benefits. Addressing climate change involves intricate economic considerations, emphasizing the need for informed decision-making and prioritized actions for a sustainable future.

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