CarbonPricingHow to start calculating your own price?
Use this tool to calculate a suggested carbon price for your organization, based on the Social Cost of Carbon (SCC), which is estimate of the damages from emitting a ton of carbon dioxide. To do so, define a discount rate which represents how much weight is assigned today to impacts of emissions felt in the future. A higher discount rate results in a lower carbon price, as future damages are considered less valuable. The decision we make about the discount rate determines how the undiscounted marginal damages are converted into a present value of damages, which is the social cost of carbon. This tool is is powered by the open source RFF-Berkeley Greenhouse Gas Impact Value Estimator (GIVE) model developed by UC Berkeley and Resources for the Future.
Learn more about the model (via RFF)
Price overview
The chart shows how the suggested carbon price varies in time based on how future climate damages are discounted. Play with different discount rates to see how the suggested carbon price varies over time.
Choose your discount rate to configure your carbon price
Learn more (via Carbon Brief)
Your carbon price should be
$
494
65
in USD per Ton of CO2
Discount Rate
1%
Reduced Climate Damage
A higher discount rate implies that future generations are valued less than today's generation. A lower discount rate implies a greater value for future generations. It is recommended to keep discount rates to less than 2% to meet this balance.
Go to Output
Model description (GIVE Model)
The RFF-Berkeley Greenhouse Gas Impact Value Estimator (GIVE model) is an integrated assessment model (IAM) of climate change. It is made up of four modules that work in sequence: 1) The Socioeconomic Module, which predicts future population, GDP, and greenhouse gas emissions. 2) The Climate Module, which uses the projections from the first module to generate four outputs that show the different types of changes in the climate system, such as global temperature increase. 3) The Damages Module, which assesses the economic damage caused by changes in the climate system, such as impacts on agriculture and human health. 4) The Discounting Module adds up future economic damages over time and translates them into present-day dollars, producing estimates of the Social Cost of Carbon. The social cost of carbon is the result of the GIVE model that represents the economic damage caused by releasing an additional ton of carbon dioxide into the atmosphere, in present-day dollars. The output is based on the average value instead of the median value, as the average SCC is commonly used as the primary estimate in benefit-cost analysis. The model does not take into account specific inputs or characteristics of an organization to calculate the social cost of carbon because it considers the economic damages caused by emitting one additional ton of carbon dioxide to be the same for any type of activity.
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