Calculations of the social cost of carbon can be used to
A) set carbon taxes to achieve a socially efficient level of pollution.
B) assist with regulatory impact analysis.
C) guide regulatory decisions by the EPA.
D) all of the above.

Question

Quizplus · Accepted Answer

Calculations of the social cost of carbon can be used to determine the optimal level of a carbon tax that would reduce emissions to a socially efficient level. It can also be used in regulatory impact analysis to evaluate the costs and benefits of potential regulations aimed at reducing carbon emissions. The social cost of carbon can also guide regulatory decisions made by the Environmental Protection Agency (EPA) in setting emission standards and enforcing regulations. Therefore, all of the choices (A, B, and C) are correct.

Calculations of the Social Cost of Carbon Can Be Used