If turned on, the module 51_internalizeDamages calculates in between iterations the social cost of carbon based on the damages calculated in module 50_damages. These are then stored in the parameter pm_taxCO2eqSCC which is to the carbon tax, endogenizing the social cost of carbon into the model. The method is described in Schultes et al. (2020). There are the options off, DiceLikeItr and BurkeLikeItr, corresponding to the damages calculated in module 50_damages. Aside from the damages, a temperature impulse response is required, which is calculated with MAGICC based on the given emissions pathway. The calculation is done with an annual time step, input from REMIND is interpolated to that. The parameter p51_sccConvergenceMaxDeviation is an indicator for the difference of the SCC to that of the previous iteration, assessing convergence.
| Description | Unit | A | B | C | |
|---|---|---|---|---|---|
| cm_damages_BurkeLike_persistenceTime | persistence time in years for Burke-like damage functions | x | |||
| cm_damages_SccHorizon | Horizon for SCC calculation. Damages cm_damagesSccHorizon years into the future are internalized. | x | x | ||
| cm_startyear | first optimized modelling time step | \(year\) | x | x | |
| pm_consPC (tall, all_regi) |
Consumption per capita | x | x | ||
| pm_damage (tall, all_regi) |
damage factor (reduces GDP) | x | |||
| pm_damageGrowthRate (tall, all_regi) |
damage function for growth rate of GDP | x | |||
| pm_damageMarginal (tall, all_regi) |
damage function derivative | x | x | ||
| pm_GDPGross (tall, all_regi) |
gross GDP (before damages) | x | x | ||
| pm_prtp (all_regi) |
Pure rate of time preference | x | x | ||
| pm_taxCO2eqSCC (ttot, all_regi) |
carbon tax component due to damages (social cost of carbon) | x | x | x | |
| pm_temperatureImpulseResponseCO2 (tall, tall) |
temperature impulse response to CO2 | \(K/GtCO2\) | x | x | |
| pm_tempScaleGlob2Reg (tall, all_regi) |
scaling factor from global to regional temperature | x | |||
| pm_ttot_2_tall (ttot, tall) |
mapping from ttot to tall | x | x |
Based on the analytic expression derived in Schultes et al. (2020) the social cost of carbon corresponding to the Burke-based damages calculated in module 50_damages/BurkeLike are calculated.
Limitations There are no known limitations.
Based on the analytic expression derived in Schultes et al. (2020) the social cost of carbon corresponding to the DICE-based damages calculated in module 50_damages/DiceLike are calculated.
Limitations There are no known limitations.
The off-realization of the internalizeDamages module sets the parameter pm_taxCO2eqSCC to zero, meaning no social costs of carbon are included in the optimization.
Limitations There are no known limitations.
| Description | Unit | A | B | C | |
|---|---|---|---|---|---|
| p51_marginalDamageCumul (tall, tall, all_regi) |
marginal cumulative damage damages | x | |||
| p51_scc (tall) |
Social cost of carbon (due to GDP damages) | \(\$/tCO2eq\) | x | x | |
| p51_sccConvergenceMaxDeviation | max deviation of SCC from last iteration | \(percent\) | x | x | |
| p51_sccLastItr (tall) |
Social cost of carbon (due to GDP damages) from last iteration | \(\$/tCO2eq\) | x | x | |
| p51_sccParts (tall, tall, all_regi) |
Social cost of carbon components (time, region) | x |
| description | |
|---|---|
| all_regi | all regions |
| iteration | iterator for main (Negishi/Nash) iterations |
| modules | all the available modules |
| regi(all_regi) | all regions used in the solution process |
| tall | time index |
| ttot(tall) | time index with spin up |
Anselm Schultes
Schultes, Anselm, Gunnar Luderer, Franziska Piontek, Bjoern Soergel, Joeri Rogelj, Elmar Kriegler, and Ottmar Edenhofer. 2020. “Persistent Economic Damages Determine Social Costs of Carbon.”