Estimation of economic benefits associated with the reduction in the CO2 emission due to COVID-19

Since World War-II, the COVID-19 pandemic is considered the most serious challenge faced by the mankind. This pandemic has not only adversely affected the health systems but has also disrupted the manufacturing and industrial sectors and thus leading to low CO2 emissions. Reduction in the carbon dioxide (CO2) gas emission has been noticed nearly everywhere in the world due to shutdown of industries and lockdown imposed by governments as a consequence of the COVID-19 pandemic. In the year 2019, around 37 billion tons of CO2 emitted globally that has been reduced by 9% in the same period (January to July) for the year 2020 as consequence of COVID-19 pandemic. The Social Cost of Carbon (SCC) of a country reflects the economic damages caused by per ton increase in the CO2 emissions. Economic and environmental benefits are associated with the reduction of CO2 emissions as a result of COVID-19 and their estimation is the main theme of the study. Coupling reduction in the CO2 emissions to the Social Cost of Carbon gives economic benefit for a country. The research presented investigates the long term economic and environmental benefits associated with the reduction in the CO2 emissions for various regions of the world. The economic benefit due to the reduction in the of the CO2 emissions as consequence of the COVID-19 to global economy is estimated as 650 billion US Dollars for the period of 6 months (from January to July). The study mainly focuses on the countries that contribute the high percentage of CO2 emissions to the atmosphere. The first half of year 2020 (from January 2020 to July 2020) is taken into consideration because lockdown was mainly followed in that period. Further, within the country the sectors that contribute the high percentage of CO2 emissions are also taken into account.