Estimation of Social Cost of Carbon in Russia

This paper presents research on a climate change impact on the economy of Russia. There is a wide range of publications on climate change economics and social cost of carbon in particular. However, there are no articles focused directly on Russia. Those publications, which include the assessment of SCC, mostly examine world’s indicator, or show the results for Russia without any further immersion in them. Hence, this exact research field seems necessary to explore. The major goal of this research is to estimate the social cost of carbon, which will show the impact of human carbon emissions on the global economy and Russian economy. For this purpose, the so-called Integrated Assessment Model DICE-2016 with 1 original result and 3 sets of parameter changes is being used. To analyze the uncertainty, the Monte-Carlo Analysis is added to the research. Also, the research includes two methods of disaggregation: by GDP and by population. A crucial part of the paper will be an analysis of existing literature on the world’s social cost of carbon, as well as a comparison of existing results with those obtained in this study. As a result this paper introduces the SCC for Russia equal to 0.5-2.6 USD (2010 PPP). Keywords: social cost of carbon, climate change, integrated assessment models, DICE model