Fig. 3.

Social cost of carbon and growth-corrected discount rate in DICE model. The growth-corrected discount rate equals the discount rate on goods minus the growth rate of consumption. The solid line shows the central role of the growth-corrected discount rate on goods in determining the SCC in the DICE model. The square is the SCC from the full DICE model, and the triangle uses the assumptions of The Stern Review (10). A further discussion and derivation of the growth-corrected discount rate is given in Supporting Information.