This paper derives the social cost of carbon (SCC) and its rate of change. It does so in a deterministic Ramsey model of optimal economic growth with carbon emissions from burning fossil fuels. It is shown that the determinants of the rate of change of the SCC are substantially almost identical...

When a producer manufactures a polluting product that is demanded by a consumer, who is causing that pollution? The producer, the consumer, or both? And if the state then imposes policies to mitigate the emissions but the producer passes the abatement costs onto its customers, does this...