The Environmental Protection Agency, other government agencies and various scientists contend that fossil fuels and carbon dioxide emissions are causing dangerous global warming and climate change. They use this claim to justify repressive regulations for automobiles, coal-fired power plants and other facilities powered by hydrocarbon energy.
Because these rules are costing millions of jobs and billions of dollars, a federal Interagency Working Group (IWG) devised the “social cost of carbon” concept – which attaches arbitrary monetary values to the alleged impacts of using hydrocarbons and emitting carbon dioxide. SCC estimates represent the supposed monetized damages associated with incremental increases in “carbon pollution” in a given year.
With little publicity, debate or public input, in 2010 the IWG set the cost at $22 per ton of carbon dioxide emitted. Then, in 2013 (again with little notice), it arbitrarily increased the SCC to $36/ton, enabling agencies to proclaim massive, unacceptable damages from “carbon,” and enormous benefits from their regulations. Recently, the Department of Energy used the $36 formula to justify proposed standards for microwave ovens, cell phone chargers and laptops!
The SCC allows unelected bureaucrats to wildly amplify the alleged impacts of theoretical manmade climate disasters, exaggerate the supposed benefits of rules, minimize their costs, and ignore the value to society of the facility, activity or product they want to regulate. That is exactly what is happening.
Fundamental flaws in the SCC concept and process make the agencies’ analyses – and proposed rulemakings – questionable, improper, and even fraudulent and illegal. A new Management Information Services, Inc. (MISI) analysis examines this in detail.
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