In August 2016, the 7th U.S. Circuit Court of Appeals unanimously upheld the Department of Energy’s (DOE) use of the social cost of carbon during the development of efficiency standards for commercial refrigeration equipment. The decision follows an industry group challenge of the DOE’s authority to use the estimate to quantify benefits of efficiency standards.
This case represents the first ruling on the use of the social cost of carbon in a regulatory cost-benefit analyses. The ruling provides a precedent for the continued use of the social cost of carbon in regulatory proceedings for the federal government. The ruling also may bring credibility to this policy as an accepted standard for other stakeholders such as states or public utility commissions.
E&E Publishing: Court rules for DOE, upholding Obama’s social cost of carbon
U.S. EPA: The Social Cost of Carbon
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