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The "Social Cost of Carbon" Is the Monetary Value of the Damage

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The "social cost of carbon" is the monetary value of the damage done by a ton of carbon dioxide emissions.


Definitions:

Earning Power

An indication of a company's ability to generate profit from its operations, often used by investors to assess financial health.

Inflation

The rate at which the typical cost levels of goods and services elevate, undermining the power to buy.

Real Rate

The interest rate adjusted for inflation, providing a more accurate indication of the borrowing cost or investment return in terms of real purchasing power.

Principal

The original sum of money borrowed in a loan, or the original amount invested, excluding any interest or dividends.

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