As an undergraduateEconomics teacher, you can use this set of computer-based tools to help you in teaching cost-benefit analysis.
This lesson plan will help students to understand the principles of cost-benefit analysis. The activities will allow students to apply cost-benefit analysis to global climate change, in general, and to carbon abatement (an action to mitigate climate change).
Thus, the use of this lesson plan allows you to integrate the teaching of a climate science topic with a core topic in Economics.
Questions
Use this lesson plan to help your students find answers to:
Explain the principles of cost-benefit analysis
What are the possible limitations of measuring the costs of climate change in terms of the GDP?
How can cost-benefit analysis be applied to carbon emissions abatement?
Video Tutorial : How to use this Lesson Plan
Please note, the first 3 min 52 sec of the video introduce how to use TROP ICSU resources followed by description of this Lesson Plan.
Global Greenhouse Gas Abatement Cost Curve for 2030
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
Introduce the topic with the help of a reading
Introduce the topic of cost-benefit analysis and its principles by using the reading “An Introduction to Cost Benefit Analysis” from Thayer Watkins, Department of Economics, San Jose State University.
2
Discuss the topic in more detail by using another reading
Next, introduce the economic analysis of climate change and discuss cost-benefit studies of global climate change by using the reading in Ch. 2 (pg. 15-25) of “Economic Analysis of Climate Change: Cost-Benefit Studies of Global Climate Change” from “The Economics of Global Climate Change”.
Note: If the file is not properly readable in your browser, try to first download it and then open it. Download the file by using right-click on Windows or Control+click on Mac, followed by selecting "Save link as" on following link: Download PDF File
This reading explores and compares the methodology used by various economic models for cost-benefit analysis of climate change.
The original reading in English, its French version is available here.
3
Conduct a Classroom/activity
Now, explore the topic further through a hands-on activity, “Abating Carbon Emissions”, to perform cost-benefit analysis for carbon emissions abatement.
The classroom/laboratory activity “Abating Carbon Emissions” is developed by Gautam Sethi (Bard College), Curt Gervich (SUNY Plattsburgh), and Robyn Smyth (Bard College).
In this activity, carbon abatement is considered to be an action that will mitigate climate change, and the costs and benefits of abating carbon emissions are calculated.
Download the teaching materials and reading material, and conduct the activities as described in Part 1 and Part 2 of the unit 5.
Use the tools and the concepts learned so far to discuss and determine answers to the following questions:
Explain the principles of cost-benefit analysis.
What are the possible limitations of measuring the costs of climate change in terms of the GDP?
How can cost-benefit analysis be applied to carbon emissions abatement?
The tools in this lesson plan will enable students to:
describe cost-benefit analysis
apply cost-benefit analysis to global climate change
apply cost-benefit analysis to carbon emissions abatement
If you or your students would like to explore the topic further, these additional resources will be useful.
1
micro-lecture (video)
A micro-lecture (video), “Quantifying the Economic Cost of Climate Change”, delivered by Solomon M. Hsiang, Climate Risk Expert and U.C. Berkeley Professor of Public Policy, from RMSConnection: https://www.youtube.com/watch?v=yNYZJD_llno
1
Reading, “An Introduction to Cost Benefit Analysis”
Thayer Watkins, Department of Economics, San Jose State University
2
Reading, “Economic Analysis of Climate Change: Cost-Benefit Studies of Global Climate Change” from “The Economics of Global Climate Change”
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
