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School of Business, Örebro University Working Papers, School of Business, Örebro University

No 2012:3:
Temporal Aspects of the Social Cost of Greenhouse Gases

Disa Thureson ()

Abstract: The purpose of this study is to investigate the temporal aspects of the social cost of greenhouse gases (GHGs). I am particularly interested in the interaction between time of emissions, discounting, and type of GHG (where different GHGs have different atmospheric lifetimes). I show graphically how the social costs of GHGs depend on different parameter values and how the global damage potential for methane and sulfur hexafluoride evolves over time. I find that that the calculation period ultimately should be modeled to be consistent with the discount rate and that the “global-warming potential” concept is unsuitable for calculating of the social cost of GHGs other than carbon dioxide.

Keywords: Cost benefit analysis; Discount rates; Emissions pricing; Global warming potential; (follow links to similar papers)

JEL-Codes: Q54; (follow links to similar papers)

14 pages, February 27, 2012, Revised February 1, 2016

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