The Institute for Policy Integrity produces three types of publications: policy briefs, reports, and working papers. Geared to an audience of political decisionmakers, our policy briefs provide incisive and focused analysis on timely policy topics. Our report series develops deeper research and examination of our core issues. Our working papers give an opportunity for extensive and original scholarly research and analysis from established experts as well as fresh new voices.
The social cost of carbon is an estimate of the economic damage done by each ton of carbon dioxide spewed into the air. Howard examines the Integrated Assessment Models used to produce the social cost of carbon estimate and gives a comprehensive review of what each model accounts for and what each model misses.
The author responds to an argument made by Cass Sunstein that administrative agencies should use breakeven analysis when unable to quantify benefits of a specific regulation. Breakeven analysis seeks to determine how high nonquantifiable benefits of a regulation would have to be for the benefits to justify the costs. In this Comment, the author argues that breakeven analysis can be useful but is always a second-best technique. The first-best approach is to quantify the benefit.