Which of the following statements best describes the term ‘Social Cost of Carbon’?
It is a measure, in monetary value, of the

The correct option is: long-term damage done by a tonne of CO₂ emissions in a given year.

Understanding the Social Cost of Carbon (SCC):
The Social Cost of Carbon (SCC) is an economic metric used to estimate the economic damages associated with an increase in carbon dioxide (CO₂) emissions. Specifically, it represents the net economic cost of emitting one additional metric ton of CO₂ into the atmosphere in a given year.

Why this definition is correct:
1. Monetary Value: The SCC is expressed in monetary terms (e.g., dollars per tonne of CO₂) to help policymakers weigh the economic benefits of reducing greenhouse gas emissions against the costs of implementation.
2. Long-Term Damage: Since CO₂ remains in the atmosphere for a very long period, its emissions today will continue to cause climate-related damages (such as changes in net agricultural productivity, human health risks, property damages from increased flood risk, and changes in energy system costs) far into the future. The SCC calculates the present value of these long-term future damages.
3. Incremental Impact: It measures the marginal impact of exactly one additional tonne of CO₂ emitted in a specific year, reflecting how that small increment alters the global climate pathway and associated damages.