"The ‘social cost of carbon’ is an estimate of the costs of carbon pollution to society via climate damages. It’s an important number in terms of setting federal policy. In May 2013, the US government revised its estimate of the social cost of carbon from $22 per ton of carbon dioxide emitted to $37 per ton, to great consternation from the Republican Party. The new figure was based in large part on the average of the estimates from current economic models.
However, Moore and Diaz conclude that when accounting for climate impacts on economic growth, the social carbon cost rises to between about $70 and $400, with a best estimate of over $200 per ton."
"There’s another important take-away from this study. There have been a lot of arguments, based on current economic models, that the costs from climate damages won’t be so large, and that we should instead focus on other problems. By failing to account for the impacts of climate damages on economic growth, to date these models appear to have significantly underestimated their costs.
When accounting for the full impacts of climate damages, there’s a strong economic case for immediate aggressive efforts to cut carbon pollution."