California Department of Transportation Uses the SCC in Project-Level Benefit-Cost Analysis
Project-level benefit cost analysis
The California Department of Transportation (DOT) uses the social cost of greenhouse gases, as appropriate, into its analysis of projects including: operational improvement, transportation management, highway expansion, and rail/transit. The DOT applies the IWG SCC values (adjusted for inflation) at the 3 percent discount rate, and a 2 percent “uprater,” to reflect the IWG conclusion that “future emissions are expected to produce larger incremental damages as physical and economic systems become more stressed.” 1
$36/ton CO2 and $38/ton CO2
- Cal. Dept. of Trans., Cal-B/C Parameter Guide Version 7.1, at 19-20 (Nov. 2019), available at https://dot.ca.gov/-/media/dot-media/programs/transportation-planning/documents/transportation-economics/cal-bc/cal-bc_parameter_guide_ada_final- a11y.pdf, citing Interagency Working Group on Social Cost of Carbon, Technical Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866, May 2013, Revised July 2015. ↩︎
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