The Private Benefit of Carbon and its Social Cost

Richard Tol

Working Paper Series from Department of Economics, University of Sussex Business School

Abstract: The private benefit of carbon is the value, at the margin, of the energy services provided by the use of fossil fuels. It is the weighted average of the price of energy times the carbon dioxide emission coefficient, with energy used as weights. The private benefits is here estimated, for the first time, at $411/tCO2. The private benefit is lowest for coal use in industry and highest for residential electricity; it is lowest in Kazakhstan and highest in Norway. The private benefit of carbon is much higher than the social cost of carbon.

Keywords: private benefit of carbon; social cost of carbon; climate policy (search for similar items in EconPapers)
JEL-codes: Q54 (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-cis, nep-ene, nep-env and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:sus:susewp:0717

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