Foes of Obama climate policy prepare battle over cost of carbon
Stephen Brown, head of government affairs for Tesoro, said in an interview that companies and some industry groups may seek petitions to change the calculation, file direct legal challenges to the SCC or file an indirect legal challenge by suing the EPA for rules using "unvetted" SCC figures.
Frank Ackerman, a senior economist at research firm Synapse Energy Economics who supports strong climate regulations, said the "anonymous task force" that calculated the first SCC in 2010 using three criticized economic models and scenarios failed to improve the process.
"The bad news is that behind the veil of secrecy, the same nonsensical methodology was used both times," he said.
Rachel Cleetus, a senior climate economist at the Union of Concerned Scientists, agreed that the models used by the interagency group were not perfect. But she said there are ways to improve the process for making the estimates.
She said the government could set up a transparent external expert review process that would allow for public comments.
"While the economic models we use to examine climate change and its impacts and costs will keep being updated, it would be a mistake to throw the baby out with the bath water," she said.