Should International Benefits Count? Open Access
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Should federal regulatory benefit-cost analysis (BCA) include benefits realized by residents of other nations? When it comes to valuing the effects of climate change, the federal government has recently decided that it should. A May 2013 technical update of an interagency working group established a revised range of values agencies are expected to use for the social cost of carbon (SCC) in regulatory analyses. Based on the working group’s earlier guidance on this subject, the Environmental Protection Agency’s (EPA) analysis of greenhouse gas and fuel economy standards for 2017 and later cars and light duty trucks includes $126 billion in benefits, primarily carbon reductions, less than a quarter of which are domestic benefits.