California Department of Transportation Uses the SCC in Project-Level Benefit-Cost Analysis

  • Application

    Project-level benefit cost analysis

  • Date

    July 2021
  • Details

    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.” 

  • SCC Value(s)

    $36/ton CO2 and $38/ton CO2

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