How much should we spend to reduce greenhouse gas emissions? McKinsey & Company says the United States can reduce its emissions to well below recent levels by 2030 if it invests in programs and technologies that cost no more than $50 per metric ton of abated carbon dioxide equivalent emissions. But some might argue that won’t be enough; others may say it is too much.
To provide another answer, the Obama administration has estimated the social cost of carbon. As shown in the above chart, the cost depends on the year the gases are emitted; the discount rate; and whether you believe the average cost estimate or an estimate at the 95th percentile of the high end of costs. Costs rise for gasses emitted in the future because they are supposed to have more serious and irreversible consequences.
