States Using the SCC

Although the federal climate-damage estimates were developed for use in federal analysis, there is widespread support for use of the SC-GHG in other contexts. For state-level policymakers, the SC-GHG is appropriate for evaluating nearly all regulations and other policies that affect or price greenhouse gas emissions. These include:

  • State environmental, transportation, or energy rulemakings
  • Electricity ratemaking and regulation
  • Natural resource valuation and royalty setting
  • Government procurement
  • Environmental impact statements
  • Setting carbon emissions caps or taxes.

Numerous states are already using the SC-GHG to account for the impact of greenhouse gas emissions. There is a widespread consensus that the updated SC-GHG estimates developed by EPA are the best available estimates. Accordingly, state regulators should apply these values when legally permitted.

The following list compiles examples where states have used the social cost of greenhouse gases, but it is likely incomplete. To report additional examples, please contact Max Sarinsky at [email protected].