It's The Externalities, Stupid — Climate Edition (Video)

Among the important provisions of President Biden's Executive Order on Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis is the requirement to review and revise estimates of the social cost of carbon (and nitrous oxide and methane). The order establishes a working group, co-chaired by the Chair of the Council of Economic Advisers, the Director of OMB, and the Director of the Office of Science and Technology Policy. The working group has been directed to provide interim updates within 30 days, and a revised SCC, SCN, and SCM by January 2022.

There's little doubt that the SCC will be greater than $50/ton, and it could be substantially higher. In fact, the Bloomberg Environmental and Energy Report (subscription required) published an interview last Friday with Michael Greenstone, who is now at the University of Chicago, but was one of the developers of the SCC in the Obama administration. As of last year, that formula