Which one of the following statements best describes the term ‘Social Cost of Carbon’?
It is a measure, in monetary value, of the
Answer & explanation
Answer: (a) long-term damage done by a tonne of CO2 emissions in a given year.
The Social Cost of Carbon is the money value of the long-term damage caused by one extra tonne of carbon dioxide emitted in a given year. Governments use it to weigh the benefits of cutting emissions against the costs of a policy.
- ✓ (a) This is the standard definition: a measure, in money terms, of the long-term damage done by a tonne of CO2 emitted in a given year; the same figure equals the damage avoided by cutting that tonne.
- ✗ (b) This describes a country's fossil-fuel demand, which is not a monetary damage measure.
- ✗ (c) The cost of adaptation by a climate refugee is not what the term measures; it values damage from emissions.
- ✗ (d) An individual's contribution is a personal carbon footprint, not the Social Cost of Carbon.
Remember · Social Cost of Carbon = money value of the long-term damage from one extra tonne of CO2 emitted in a year; equally, the benefit of avoiding it.
Sources
- EPA Fact Sheet: Social Cost of Carbon (December 2016), US Environmental Protection Agency ↗ “The SC-CO2 is a measure, in dollars, of the long-term damage done by a ton of carbon dioxide (CO2) emissions in a given year.”
Question and answer: UPSC's official GS Paper I (2020, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·