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Environmental Economics: Cap-and-Trade


As an Undergraduate Economics teacher, you can use this set of computer-based tools to help you in teaching climate mitigation environmental policies and specifically about the cap-and-trade system.

This lesson plan allows you to teach about economic policy responses to climate change. This lesson plan includes resources to explain various policy approaches to mitigating climate change such as carbon taxes and cap-and-trade systems, their differences, and advantages. It includes an engaging classroom activity to help your students to apply economical concepts such as price formation, market-based incentives, and transferable quotas/permits; and learn about carbon pricing, carbon taxes, and the cap-and-trade environmental policy. 

Thus, the use of this lesson plan allows you to integrate the teaching of a climate science topic with a core topic in Economics

Learning Outcome

The tools in this lesson plan will enable students to:

  1. Learn about climate change mitigation through carbon pricing policies
  2. Describe and differentiate between carbon tax and cap-and-trade systems
  3. Explain the advantages and disadvantages of the cap-and-trade carbon policy
  4. Discuss the importance of the cap-and-trade policy for global climate change mitigation.

Mapped Sustainable Development Goal(s), apart from 4 and 13


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