Replication Data for: A Discounting Rule for the Social Cost of Carbon

Replication code for "A Discounting Rule for the Social Cost of Carbon" by Richard Newell, William Pizer, and Brian Prest, accepted at JAERE. The code calibrates discounting parameters (rho and eta) in a Ramsey-like discounting rule for estimating the social cost of carbon. The input data are empirically derived interest rate term structures (based on Bauer and Rudebusch 2020) and econometrically estimated distributions of global economic growth (based on Muller, Stock, and Watson 2019). The result is a set of empirically calibrated discounting parameters. The impact on the SCC is demonstrated in an illustrative calculation applying the parameters to output of the DICE model (relative to constant discounting, as previously embraced by the US government).