Abstract:Traditional climate change economics has concluded that "the slower the action to reduce emissions, the greater the future costs and consequences." In contrast, new climate change economics focuses on how to assess climate impacts, making the introduction and evaluation of the social cost of carbon crucial for formulating climate change policies. This paper first defines the basic concept and main characteristics of the social cost of carbon (SCC), then introduces the integrated assessment models currently used for evaluating SCC, and discusses the key indicators and factors that influence SCC. It can be found that the policy application of SCC is already reflected in the policy designs of developed economies, indicating its broad potential for application. However, there are still challenges in understanding and applying the concept, as well as in continuously researching and exploring ways to reduce uncertainties. There need to further enhance the understanding of the concepts, as well as to continuously reduce and optimize the parameter setting and model construction in the assessment work, so as to better serve the decision-making of the relevant carbon policies.