The estimation of SCC is fraught with uncertainties in estimating (a) the emissions paths that are likely in the future as that depends on future policy and technology, (b) the parameters that map emissions to climate change, (c) the translation of climate change into physical and economic damage, (d) the choice of the appropriate discount rate. Changing some of these assumptions or introducing something like ecosystem services that are not substitutable with man-made capital changes the policy recommendations radically.
Total world debt was $253 trillion in the third quarter of 2019. Our economy is like a house of cards built using money created by debt. The house of cards has allowed us to reach previously unimaginable heights, albeit with money we don’t have. But at what cost?