Here is a step-by-step guide to using this lesson plan in the classroom/laboratory. We have suggested these steps as a possible plan of action. You may customize the lesson plan according to your preferences and requirements.

1.Topic introduction and discussion

Teaching Module (30-45 min)

Use the teaching module, ‘Cap and trade environmental policies’ by the CORE Project, to introduce climate change mitigation policies such as carbon pricing. Use the module to teach about economic tools such as carbon taxes and the cap-and-trade policy. Discuss the given examples of the cap-and-trade systems used in the past to highlight its benefits. Use the exercises given in text to enable your students to assess the advantages and disadvantages of the carbon tax and the cap-and-trade systems. Note that these exercises involve some extensive readings.

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2. Apply understanding

Classroom/Laboratory Activity (30-45 min)

Use the working paper, ‘For want of a chair: teaching price formation using a cap and trade game’ by Stefano Carattini et al., provided by the London School of Economics and Political Science, to engage your students in an in-class game to apply their understanding of economic concepts such as price formation, market-based incentives, and trading of quotas/permits. Use this game to highlight key tenets of environmental economics such as carbon pricing and carbon markets. Use this activity to enable your students to play the role of policy makers and extend their understanding of carbon pricing policies such as carbon taxes and the cap-and-trade systems. Follow the instructions as outlined in the paper to engage the students in either a mobile app (ClassEx) or paper-based interaction. A video guide to using the ClassEx software can be found in the additional resources section of this lesson plan. Finally, encourage your students to discuss their understanding of how emissions trading systems work and how they could use this to assess their nation’s environmental economic policies.

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3.Questions/Assignments

Use the tools and the concepts learned so far to discuss and determine answers to the following questions:

• What is a carbon pricing policy?
• What is the cap-and-trade system?
• Compare the carbon tax and the cap-and-trade policies. Which system do you support?
• The cap-and-trade policy would be effective in reducing worldwide emissions if all countries participate. Explain how this would affect the economic growth of your nation.
• Climate change is a global issue and the cap-and-trade policy would raise the cost of living especially affecting the poorer nations. How could governments address this issue through their economic policies?

Use this lesson plan to help your students find answers to:

1. What is a carbon pricing policy?
2. What is the cap-and-trade system?
3. Compare the carbon tax and the cap-and-trade policies. Which system do you support?
4. The cap-and-trade policy would be effective in reducing worldwide emissions if all countries participate. Explain how this would affect the economic growth of your nation.
5. Climate change is a global issue and the cap-and-trade policy would raise the cost of living especially affecting the poorer nations. How could governments address this issue through their economic policies?