Looking at the Figure in Rennert et. al. 2022 (the one you linked to) the cost of CO2 appears very sensitive to discounting with lower discount factor making negative costs more likely. I wonder how your criticism of Rennert et. al. is affected by this observation (if any)? They can acknowledge the importance of properly accounting for technology but argue that governmental agencies are underestimating the cost anyway since the discount factor currently in use is too high.
I think the difference between the Biden value and the new one is mostly the change from 3% to 2% discounting, but I don't have an opinion on what discount rate they should be using.
Looking at the Figure in Rennert et. al. 2022 (the one you linked to) the cost of CO2 appears very sensitive to discounting with lower discount factor making negative costs more likely. I wonder how your criticism of Rennert et. al. is affected by this observation (if any)? They can acknowledge the importance of properly accounting for technology but argue that governmental agencies are underestimating the cost anyway since the discount factor currently in use is too high.
I think the difference between the Biden value and the new one is mostly the change from 3% to 2% discounting, but I don't have an opinion on what discount rate they should be using.
Footnote links are not working.