Climate Change Economics
Expert-defined terms from the Professional Certificate in Environmental Economics course at LearnUNI. Free to read, free to share, paired with a professional course.
Abatement cost refers to the cost of reducing environmental pollutants… #
It is a crucial concept in climate change economics as it helps policymakers and businesses understand the economic implications of reducing emissions. Abatement costs can vary depending on the technology, industry, and location. For example, the abatement cost of reducing carbon emissions from a coal-fired power plant might be higher than from a natural gas-fired power plant.
Absolute advantage is a concept in international trade that refers to a country'… #
In the context of climate change economics, absolute advantage can be relevant when considering the production of renewable energy technologies or green goods. Countries with an absolute advantage in these areas may be able to export their products to other countries, promoting sustainable development and reducing greenhouse gas emissions.
Adaptation refers to the process of adjusting to the impacts of climate c… #
Adaptation can involve a range of strategies, including infrastructure development, agricultural changes, and public health measures. In climate change economics, adaptation is often considered in conjunction with mitigation, which involves reducing greenhouse gas emissions to limit the magnitude of climate change.
Adaptive management is an approach to managing complex systems, such as e… #
It involves a cyclical process of planning, implementation, monitoring, and evaluation, with an emphasis on learning and adjusting to new information. Adaptive management can be applied to climate change economics, where it can help policymakers and businesses respond to the uncertainties and complexities of climate change.
Aggregate demand refers to the total demand for goods and services in an… #
In climate change economics, aggregate demand can be influenced by climate change policies, such as carbon pricing or green subsidies, which can affect the demand for fossil fuels, renewable energy, or green products. Understanding aggregate demand is crucial for policymakers to design effective climate change policies that minimize economic disruptions.
Air pollution is a significant problem that affects human health, the env… #
In climate change economics, air pollution is often considered in conjunction with greenhouse gas emissions, as many pollutants that contribute to air pollution also contribute to climate change. Reducing air pollution can have numerous benefits, including improved public health, increased economic productivity, and reduced greenhouse gas emissions.
Alternative energy refers to energy sources that are alternative to fossi… #
Alternative energy sources can help reduce greenhouse gas emissions and dependence on fossil fuels, promoting sustainable development and mitigating climate change. In climate change economics, alternative energy sources are often considered as a key strategy for reducing emissions and promoting energy security.
Anthropogenic refers to human #
induced changes to the environment, such as climate change, deforestation, or pollution. Anthropogenic climate change is caused by human activities, such as burning fossil fuels, deforestation, or land-use changes, which release large amounts of greenhouse gases into the atmosphere. Understanding anthropogenic climate change is crucial for developing effective climate change policies and mitigation strategies.
Asset stranding refers to the loss of value of assets, such as fossil fue… #
In climate change economics, asset stranding can occur when policies or technologies reduce the demand for fossil fuels, making them less valuable or even stranded. Asset stranding can have significant economic implications, including losses for investors and companies.
Avoided cost refers to the cost savings that result from avoiding a parti… #
In climate change economics, avoided costs can be used to evaluate the cost-effectiveness of climate change policies or investments, such as energy efficiency measures or renewable energy projects.
Barriers to entry refer to the obstacles that prevent new companies or in… #
In climate change economics, barriers to entry can limit the development of new industries or companies that specialize in low-carbon technologies or sustainable products. Reducing barriers to entry can promote innovation and competition in the low-carbon sector.
Baseline emissions refer to the level of greenhouse gas emissions that wo… #
Baseline emissions provide a reference point for evaluating the effectiveness of climate change policies or investments, such as the reduction in emissions achieved by a particular policy or project.
Benefit #
cost analysis is a method used to evaluate the benefits and costs of a project, policy, or investment, such as a climate change mitigation measure or a renewable energy project. Benefit-cost analysis can help policymakers and businesses determine whether a particular investment or policy is cost-effective and provides net benefits to society.
Biodiversity refers to the variety of ecosystems, species, and genes that… #
Biodiversity is essential for maintaining ecosystem services, such as air and water purification, soil formation, and climate regulation. In climate change economics, biodiversity can be affected by climate change, which can alter ecosystems, disrupt species interactions, and reduce ecosystem resilience.
Bioenergy refers to energy produced from biomass , such as wood, crops, or… #
Bioenergy can be a low-carbon alternative to fossil fuels, but its production can also have environmental and social impacts, such as land-use changes, water pollution, or competition with food crops.
Blue carbon refers to the carbon stored in marine ecosystems, such as man… #
Blue carbon ecosystems can also provide other benefits, such as shoreline protection, water filtration, and habitat for marine species.
Border tax adjustments refer to the taxes or tariffs imposed on imported… #
Border tax adjustments can help level the playing field for domestic industries and encourage countries to adopt more stringent climate change policies.
Cap #
and-trade refers to a market-based instrument that sets a limit on greenhouse gas emissions and allows companies to buy and sell emission allowances. Cap-and-trade systems can provide a flexible and cost-effective way to reduce emissions, as companies can choose to reduce their emissions or buy allowances from other companies that have reduced their emissions.
Carbon budget refers to the amount of carbon dioxide that can be emitted… #
5°C or 2°C. Carbon budgets can help policymakers and businesses develop strategies to reduce emissions and stay within the allowable carbon budget.
Carbon capture and storage (CCS) refers to the technology that captures c… #
CCS can be a crucial technology for reducing emissions from fossil fuel-based power plants and industrial processes.
Carbon footprint refers to the amount of greenhouse gas emissions associa… #
Carbon footprints can help individuals, companies, and governments understand their contribution to climate change and develop strategies to reduce their emissions.
Carbon intensity refers to the amount of carbon dioxide emitted per unit… #
Carbon intensity can be used to evaluate the effectiveness of climate change policies or investments, such as the reduction in carbon intensity achieved by a particular policy or project.
Carbon leakage refers to the phenomenon where companies or industries rel… #
Carbon leakage can be a challenge for policymakers, as it can undermine the effectiveness of climate change policies and create economic distortions.
Carbon neutrality refers to the state where an individual, company, or co… #
Carbon neutrality can be achieved through a range of strategies, including energy efficiency, renewable energy, and carbon capture and storage.
Carbon offsetting refers to the practice of compensating for greenhouse g… #
Carbon offsetting can be used by individuals, companies, or governments to offset their emissions and achieve carbon neutrality.
Carbon pricing refers to the practice of assigning a monetary value to gr… #
Carbon pricing can provide a financial incentive for companies and individuals to reduce their emissions and invest in low-carbon technologies.
Carbon sequestration refers to the process of capturing and storing carbo… #
Carbon sequestration can help mitigate climate change by reducing the amount of carbon dioxide in the atmosphere.
Carbon sink refers to a reservoir that absorbs more carbon dioxide from t… #
Carbon sinks can help mitigate climate change by sequestering carbon dioxide and reducing the amount of greenhouse gases in the atmosphere.
Carbon tax refers to a tax levied on greenhouse gas emissions, either on… #
Carbon taxes can provide a financial incentive for companies and individuals to reduce their emissions and invest in low-carbon technologies.
Climate change refers to the long #
term warming of the planet due to an increase in average global temperatures, primarily caused by human activities, such as burning fossil fuels, deforestation, or land-use changes. Climate change can have significant impacts on the environment, human health, and the economy, including sea-level rise, more frequent natural disasters, and changes in temperature and precipitation patterns.
Climate change mitigation refers to the efforts to reduce greenhouse gas… #
Climate change mitigation can involve a range of strategies, including energy efficiency, renewable energy, carbon capture and storage, and sustainable land use.
Climate change adaptation refers to the process of adjusting to the impac… #
Climate change adaptation can involve a range of strategies, including infrastructure development, agricultural changes, and public health measures.
Climate finance refers to the financial resources needed to support clima… #
Climate finance can come from a range of sources, including governments, private companies, or international institutions.
Climate justice refers to the fair and equitable distribution of the bene… #
Climate justice can involve issues of human rights, social justice, and environmental justice, particularly for vulnerable populations, such as low-income communities, indigenous peoples, or small island developing states.
Climate policy refers to the laws , regulations, and incentives that aim t… #
Climate policies can include carbon pricing, renewable energy targets, energy efficiency standards, or green subsidies.
Climate resilience refers to the ability of a system, such as a community… #
Climate resilience can involve a range of strategies, including infrastructure development, social protection, or ecosystem-based adaptation.
Co #
benefits refer to the additional benefits that can be achieved by implementing climate change policies or investments, such as improved air quality, increased energy security, or enhanced economic competitiveness. Co-benefits can be an important consideration in climate change economics, as they can help justify the costs of climate change mitigation and adaptation.
Cost #
benefit analysis is a method used to evaluate the costs and benefits of a project, policy, or investment, such as a climate change mitigation measure or a renewable energy project. Cost-benefit analysis can help policymakers and businesses determine whether a particular investment or policy is cost-effective and provides net benefits to society.
Decarbonization refers to the process of reducing the carbon intensity of… #
Decarbonization can involve a range of strategies, including energy efficiency, renewable energy, and carbon capture and storage.
Deforestation refers to the clearing of forests, usually as a result of h… #
Deforestation can contribute to climate change by releasing carbon dioxide into the atmosphere and reducing the ability of forests to act as carbon sinks.
Demand response refers to the ability of consumers to adjust their energy… #
Demand response can be an important strategy for managing energy demand and reducing peak energy consumption.
Disaster risk reduction refers to the efforts to reduce the risks and imp… #
Disaster risk reduction can involve a range of strategies, including early warning systems, emergency preparedness, and infrastructure development.
Discount rate refers to the rate at which future costs and benefits are d… #
Discount rates can be an important consideration in climate change economics, as they can affect the evaluation of long-term costs and benefits of climate change policies or investments.
Ecosystem #
based adaptation refers to the use of ecosystem services, such as coastal protection, water filtration, or soil formation, to help communities adapt to the impacts of climate change. Ecosystem-based adaptation can be a cost-effective and sustainable way to promote climate resilience.
Ecosystem services refer to the benefits that people obtain from function… #
Ecosystem services can be an important consideration in climate change economics, as they can help justify the costs of conservation and sustainable land use.
Elasticity of demand refers to the sensitivity of demand for a particular… #
Elasticity of demand can be an important consideration in climate change economics, as it can affect the evaluation of the impacts of climate change policies or investments on energy demand.
Emissions trading refers to the market #
based instrument that allows companies to buy and sell emission allowances. Emissions trading can provide a flexible and cost-effective way to reduce emissions, as companies can choose to reduce their emissions or buy allowances from other companies that have reduced their emissions.
Energy access refers to the ability of individuals or communities to acce… #
Energy access can be an important consideration in climate change economics, as it can affect the evaluation of the impacts of climate change policies or investments on energy poverty and sustainable development.
Energy efficiency refers to the use of technology or practices that reduc… #
Energy efficiency can be an important strategy for reducing greenhouse gas emissions and promoting sustainable development.
Energy poverty refers to the lack of access to modern energy services, su… #
Energy poverty can be an important consideration in climate change economics, as it can affect the evaluation of the impacts of climate change policies or investments on sustainable development.
Energy security refers to the reliability and accessibility of energy sup… #
Energy security can be an important consideration in climate change economics, as it can affect the evaluation of the impacts of climate change policies or investments on energy systems.
Environmental economics refers to the study of the economic aspects of en… #
Environmental economics can help policymakers and businesses understand the economic implications of environmental policies or investments and develop cost-effective solutions to environmental problems.
Environmental impact assessment refers to the process of evaluating the p… #
Environmental impact assessment can help policymakers and businesses identify potential environmental risks and develop strategies to mitigate them.
Externalities refer to the costs or benefits that are not reflected in th… #
Externalities can be an important consideration in climate change economics, as they can affect the evaluation of the costs and benefits of climate change policies or investments.
Forest carbon refers to the carbon stored in forests, which can be an imp… #
Forest carbon can be affected by deforestation, land-use changes, or forest degradation, which can release carbon dioxide into the atmosphere.
Fossil fuels refer to the energy sources, such as coal, oil, or natural g… #
Fossil fuels can contribute to climate change by releasing carbon dioxide into the atmosphere when burned.
Fuel poverty refers to the lack of access to affordable energy services,… #
Fuel poverty can be an important consideration in climate change economics, as it can affect the evaluation of the impacts of climate change policies or investments on energy poverty and sustainable development.
Game theory refers to the study of strategic decision #
making in situations where the outcome depends on the actions of multiple individuals or parties. Game theory can be an important consideration in climate change economics, as it can help policymakers and businesses understand the incentives and behaviors of different actors in the context of climate change.
Green bonds refer to the bonds that are specifically used to finance envi… #
Green bonds can be an important source of financing for climate change mitigation and adaptation efforts.
Green economy refers to the economy that is based on sustainable developm… #
Green economy can involve a range of strategies, including renewable energy, energy efficiency, and sustainable land use.
Green finance refers to the financial resources that are specifically use… #
Green finance can be an important source of financing for climate change mitigation and adaptation efforts.
Greenhouse gases refer to the gases that trap heat in the atmosphere, suc… #
Greenhouse gases can be emitted by human activities, such as burning fossil fuels, deforestation, or land-use changes.
Human development refers to the process of improving the well #
being and quality of life of individuals or communities, which can involve a range of factors, such as education, health, or economic opportunities. Human development can be an important consideration in climate change economics, as it can affect the evaluation of the impacts of climate change policies or investments on sustainable development.
Impact assessment refers to the process of evaluating the potential impac… #
Impact assessment can help policymakers and businesses identify potential risks and benefits and develop strategies to mitigate them.
Incentives refer to the motivations or rewards that encourage individuals… #
Incentives can be an important consideration in climate change economics, as they can affect the evaluation of the costs and benefits of climate change policies or investments.
Integrated assessment models refer to the models that integrate multiple… #
Integrated assessment models can help policymakers and businesses understand the complex interactions between different systems and develop cost-effective solutions to climate change.
International cooperation refers to the collaboration between countries o… #
International cooperation can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Investment refers to the expenditure of resources, such as money or time,… #
Investment can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Land use refers to the management of land for different purposes, such as… #
Land use can affect the evaluation of the impacts of climate change policies or investments on greenhouse gas emissions, biodiversity, or ecosystem services.
Low #
carbon economy refers to the economy that is based on low-carbon energy sources, such as renewable energy, and low-carbon technologies, such as energy efficiency or carbon capture and storage. Low-carbon economy can involve a range of strategies, including sustainable land use, green infrastructure, or climate-resilient development.
Marginal abatement cost refers to the cost of reducing one additional uni… #
Marginal abatement cost can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Market failure refers to the situation where markets fail to allocate res… #
Market failure can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Mitigation refers to the efforts to reduce greenhouse gas emissions and l… #
Mitigation can involve a range of strategies, including energy efficiency, renewable energy, carbon capture and storage, and sustainable land use.
Monitoring, reporting, and verification (MRV) refer to the processes used… #
MRV can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Natural capital refers to the stocks of natural resources, such as water,… #
Natural capital can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Net present value refers to the value of a project, policy, or investment… #
Net present value can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Non #
market benefits refer to the benefits that are not reflected in market prices, such as the value of ecosystem services, human health, or social justice. Non-market benefits can be an important consideration in climate change economics, as they can affect the evaluation of the costs and benefits of climate change policies or investments.
Opportunity cost refers to the value of the next best alternative that is… #
Opportunity cost can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Participatory governance refers to the process of involving multiple stak… #
Participatory governance can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Payment for ecosystem services (PES) refers to the payments made to indiv… #
PES can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Policy instruments refer to the tools used by governments to implement cl… #
Policy instruments can be an important consideration in climate change economics, as they can affect the evaluation of the costs and benefits of climate change policies or investments.
Polluter pays principle refers to the principle that the polluter should… #
Polluter pays principle can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Poverty reduction refers to the efforts to reduce poverty and improve the… #
Poverty reduction can be an important consideration in climate change economics, as it can affect the evaluation of the impacts of climate change policies or investments on sustainable development.
Public goods refer to the goods or services that are provided by the gove… #
Public goods can be an important consideration in climate change economics, as they can affect the evaluation of the costs and benefits of climate change policies or investments.
Renewable energy refers to the energy sources that are replenished natura… #
Renewable energy can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Resilience refers to the ability of a system, such as a community, econom… #
Resilience can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Risk assessment refers to the process of evaluating the potential risks a… #
Risk assessment can help policymakers and businesses identify potential risks and develop strategies to mitigate them.
Scenario analysis refers to the process of evaluating the potential outco… #
Scenario analysis can help policymakers and businesses understand the complex interactions between different systems and develop cost-effective solutions to climate change.
Social cost of carbon refers to the cost of the impacts of climate change… #
Social cost of carbon can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Stakeholder engagement refers to the process of involving multiple stakeh… #
Stakeholder engagement can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Sustainable development refers to the process of improving the well #
being and quality of life of individuals or communities while protecting the environment and promoting social justice. Sustainable development can be an important consideration in climate change economics, as it can affect the evaluation of the impacts of climate change policies or investments on human development and the environment.
Technology transfer refers to the process of sharing knowledge, skills, a… #
Technology transfer can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Uncertainty refers to the state of uncertainty or ambiguity about the out… #
Uncertainty can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Valuation refers to the process of assigning a monetary value to the bene… #
Valuation can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.
Willingness to pay refers to the amount that individuals or companies are… #
Willingness to pay can be an important consideration in climate change economics, as it can affect the evaluation of the costs and benefits of climate change policies or investments.