Coupling system of carbon emission and social economy: A review

With increasing international attention on the coupling system of carbon emission and social economy, governments need to formulate relevant policies and measures to control carbon dioxide and other greenhouse gas emissions. The social cost of carbon (SCC) can form the basis for such steps. To investigate research on SCC, this paper examines relevant literature in China and abroad for different methods to measure carbon emissions. It further reviews research methods for studying SCC, the effects of model parameters on SCC, and the application of SCC to policymaking. The purpose of researching the measurement of carbon emissions is to select the most appropriate, accurate, and precise methods to enhance data support for research on carbon emissions (including the measurement of social costs). Recording different models facilitates the estimation of SCC for more suitable and exact estimation methods. Analyzing the effects of model parameters on SCC clarifies decision-making and exogenous variables regarding estimating SCC, including the impact of equity weight, uncertainty, risk aversion, and discount and time preference rates on the value of SCC. Therefore, this paper reviews existing research on SCC policy to help frame policymaking appropriately, using the social cost of carbon emissions.