Reading: The Stern Review on the Economics of Climate Change Part 3

A reading from the ‘Stern Review: The Economics of Climate Change’ by economist Nicholas Stern for the Government of the United Kingdom which contains discussions on the need to stabilise greenhouse gas (GHG) concentrations and the subsequents cost of doing the same. The reading is subdivided into seven chapters, as follows:

  1. Projecting the growth of greenhouse gas emissions: This chapter discusses the past drivers of global emissions growth and a future prediction with ‘business-as-usual’ scenario in case of climate policy inaction.  [pp 169 – 192 (as per table of contents) or pp 214- 237 (as per scrolling)]
  2. The challenge of stabilisation: This chapter details steps that can be taken to stabilise GHG emissions and the cost of delay. [pp 193 – 210 (as per table of contents) or pp 238 – 255 (as per scrolling)]
  3. Identifying the costs of mitigation: This chapter looks at how mitigation costs are identified for various methods to reduce GHG emissions, who will pay for them, and what will be the long-term impacts of GHG cost-cutting. [pp 211 – 238 (as per table of contents) or pp 256 – 283(as per scrolling)]
  4. Macroeconomic models of costs: This chapter goes into the modelling approaches to calculate costs, the factors that may impact these costs, and how GHG emission cost-cutting might affect GDP. [pp 239 – 252 (as per table of contents) or pp 284 – 297 (as per scrolling)]
  5. Structural change and competitiveness: This chapter looks at the impacts of climate-change policies about market structure, trade, location and industrial emissions on market competitiveness.  [pp 253 – 268 (as per table of contents) or pp 298 – 313(as per scrolling)]
  6. Opportunities and wider benefits from climate policies: This chapter looks at the benefits and opportunities of climate change action for various industries and services and how it will impact the overall financial market.  [pp 269 -283 (as per table of contents) or pp 314 – 328 (as per scrolling)]
  7. Towards a goal for climate change policy: This chapter looks at cost-benefit analysis and climate change policy in the long run with a focus on fast changes to avoid adverse risks.  [pp 284 – 307 (as per table of contents) or pp 329 – 352(as per scrolling)]

Students will learn the cause of the rise in greenhouse gas emissions and how, due to advancement in energy technology, income growth is no longer solely dependent on emission growth. They will also learn that the benefits of climate change policies for markets and industries outweigh its costs in the long-run. 

Use this tool to help your students find answers to:

  1. What will happen if we continue with the ‘business-as-usual’ scenario of greenhouse gas emissions?
  2. State cost-effective methods and techniques to reduce greenhouse gas emission.
  3. How does The Review calculate marginal costs and marginal benefits of climate change policy?

About the Tool

Tool NamePart III: The economics of stabilisation from Stern Review: The Economics of Climate Change 
DisciplineEconomics
Topic(s) in DisciplineEconomics of Climate Change, Macroeconomics, Microeconomics, International Economics, Integrated Assessment Model, Cost-Benefit Analysis, Economic Policy, Competitive Market Policies
Climate TopicEnergy, Economics and Climate Change; Climate Mitigation and Adaptation; Policies, Politics and Environmental Governance
Type of toolReading (pp 168 to 307) –  as per table of content; (pp 213 – 352) – as per scrolling
Grade LevelUndergraduate, Graduate
LocationGlobal
LanguageEnglish
Translation
Developed byNicholas Stern
Hosted atGrupo de Pesquisa em Mudancas Climaticas (GPMC), Brazil
LinkLink
AccessOnline/Offline
Computer SkillsBasic

Classroom/ Laboratory activity: Climate Mitigation and Willingness to Pay

A classroom/laboratory activity based on data on citizens’ willingness to pay to reduce carbon emissions as a method of mitigating climate change. This data is collected through an online survey by the German government and is available for download in Excel, R, and Google Sheet formats.

Students will be able to analyse the data to construct indices for measuring attitudes or opinions. They will also learn to use Cronbach’s alpha and Likert scale. Additionally, they will use mean, standard deviation, correlation/correlation coefficient, and confidence interval to analyze the results. Through this activity, they will be able to compare the measures of willingness to pay with climate policymaking. 

Use this tool to help your students find answers to: 

  1. What is ‘willingness to pay’?
  2. How to measure willingness to pay for non-market goods like abatement to pollution?
  3. What is Cronbach’s alpha? How is it used to assess indices for internal consistency?

About the tool

Tool NameMeasuring Willingness to Pay for Climate Change Mitigation
DisciplineEconomics
Topic(s) in DisciplineWillingness to Pay (WTP), Likert Scale, Cronbach’s Alpha, Value of Abatement, Contingent Valuation
Climate Topic Climate Mitigation and Adaptation; Energy, Economics and Climate Change; Policies, Politics and Environmental Governance
Type of tool Classroom/ Laboratory Activity  
Grade LevelUndergraduate
LocationGlobal, Germany
LanguageEnglish 
Translation
Developed byCORE Project
Hosted atCORE Project Website
Linkhttps://www.core-econ.org/doing-economics/book/text/11-01.html
AccessOnline/Offline
Computer SkillsIntermediate

Reading: Willingness to Cooperate and Climate Policy

A reading titled ‘Cooperation in the Climate Commons’ by the Centre for Climate Change Economics and Policy (CCCEP), University of Leeds and The Grantham Research Institute on Climate Change and the Environment, London School of Economics and Policy. This working paper describes the willingness to cooperate as a climate solution and how it is impacted by different mitigation efforts.

Students will learn how mitigation efforts depend either on an individual’s willingness to voluntarily adapt ‘green’ consumer behaviour or through enforcement of costly public policy or a combination of the two. They will further study how various factors, such as peer pressure, social interventions, individual beliefs, trust in economic development, and local punishment policies, impact mitigation efforts. They will also learn how international and domestic climate policy affects individuals’ willingness to cooperate. 

Use this tool to help your students find answers to: 

  1. What are ‘climate commons’?
  2. How does willingness to cooperate through voluntary adaptation of green consumer behaviour differ from forceful implementation of costly public policy?
  3. What is the ‘zero-contribution’ proposition and why did the study reject it?

About the tool

Tool NameCooperation in the Climate Commons
DisciplineEconomics
Topic(s) in DisciplineEconomic Theory, Willingness to Cooperate, Public Policy, Climate Commons, Global Commons, Tragedy of the Commons, Mitigation
Climate Topic Climate Mitigation and Adaptation; Energy, Economics and Climate Change; Policies, Politics and Environmental Governance
Type of tool Reading (pp 1 – 32)
Grade LevelUndergraduate
LocationGlobal, 
LanguageEnglish 
Translation
Developed byThe Centre for Climate Change Economics and Policy (CCCEP), University of Leeds and The Grantham Research Institute on Climate Change and the Environment, London School of Economics and Policy. Authored by Stefano Carattini, Simon Levin and Alessandro Tavoni
Hosted atCentre for Climate Change Economics and Policy, UK
Linkhttps://www.cccep.ac.uk/wp-content/uploads/2017/01/working-paper-259-Carattini-et-al.pdf?from_serp=1
AccessOnline/Offline
Computer SkillsBasic

Reading: Willingness to Pay for Climate Stability

A review article by Evan Johnson and Gregory Nemet, Robert M. La Follete School of Public Affairs at the University of Wisconsin-Madison, on willingness to pay (WTP) for climate policy. This working paper is divided into five sections as follows:

  1. Section 1 describes the characteristics of WTP as an empirical tool for climate stability.
  2. Section 2 discusses literature review on WTP for climate policy, through to social and behavioural aspects.
  3. Section 3 explains calculations used and the results of comparison of various studies.
  4. Section 4 discusses a new research agenda to improve factors for identifying WTP.
  5. Section 5 concludes the study.

Students will learn about WTP in context to climate stability and the need to study it. They will also learn about which factors are commonly used to identify WTP and how they are calculated through empirical assessment. Additionally they will also learn about the challenges of using the current factors in determining the WTP and what can be done to improve its measurement.

Use this tool to help your students find answers to: 

  1. What is willingness to pay (WTP)?
  2. How is WTP calculated with regards to climate policy?
  3. What factors are commonly used to define willingness to change and how can they be improved?

About the tool

Tool NameWillingness to Pay for Climate Policy: A Review of Estimates
DisciplineEconomics
Topic(s) in DisciplineWillingness to Pay (WTP), Economic Theory, Public Policy, Integrated Assessment Model, Consumer Psychology
Climate Topic Climate Mitigation and Adaptation; Energy, Economics and Climate Change; Policies, Politics and Environmental Governance
Type of tool Reading (pp 1 – 32)
Grade LevelUndergraduate
LocationGlobal 
LanguageEnglish 
Translation
Developed byEvan Johnson and Gregory Nemet, Robert M. La Follete School of Public Affairs at the University of Wisconsin-Madison
Hosted atSocial Science Research Network Website
Linkhttps://papers.ssrn.com/sol3/papers.cfm?abstract_id=1626931
AccessOnline/Offline
Computer SkillsBasic

Reading: Conflict and water wars

A guidebook of gender-sensitive approaches to climate change policy for city planning. It discusses the different ways in which women and men are affected by climate change. This guidebook includes discussions on gender inequalities such as gender division of labour, gender differentials in income, gender biases in decision making, and other factors contributing to climate vulnerability.

Students will understand how climate change impacts genders differently. They will also learn the importance of gender sensitivity in formulating climate change policies. Students will be introduced to gender sensitive climate adaptation, mitigation and resilience in cities.

Use this tool to help your students find answers to: 

  1. How does climate change affect genders differently?
  2. Give a few reasons why climate change policies should use a gender-sensitive approach
  3. What are the priorities for gender-sensitive climate policies at urban levels?

About the Tool 

Tool Name Gender and Urban Climate Policy: Gender-Sensitive Policies Make a Difference
Discipline Humanities, Social Sciences
Topic(s) in Discipline Gender, Gender and Climate Change, Gender Inequality, Urban Planning, Public Policy, Climate Change Policy, Climate Vulnerability
Climate Topic Climate and Society, Policies, Politics, and Environmental Governance
Type of Tool Reading
Grade Level Undergraduate, Graduate
Location  Global
Language English
Translation
Developed by Federal Ministry for Economic Cooperation and Development 
Hosted at Giz, UN Habitat, Gender CC 
Link Reading Link
Access Online, Offline
Computer Skills Basic

 

E-Learning Courses on Climate Change

Series of two E-Learning Courses on Introduction to Climate Change and Climate Science

Following are two online courses in Climate Change and Climate Science by the National Resource Centre (NRC) on Climate Change at the Indian Institute of Science Education and Research (IISER), Pune as part of the Annual Refresher Programme in Teaching (ARPIT), Department of Higher Education, Ministry of Human Resources Development, Government of India.

Game: Resource Management for Improving the Climate Resilience of Cities

A game to learn about the planning and management of resources in order to improve the resilience of cities to climate change-related events such as heat waves, ocean acidification, hurricanes, and sea-level rise.

UNESCO Short Course: Climate Change in the Classroom

This is a UNESCO course for secondary teachers on climate change education for sustainable development. As mentioned by UNESCO, this six day course supports teacher education institutions to introduce climate change education into their pre-service and in-service training programme. The course is designed to give teachers confidence in facilitating climate change education for sustainable development across the curriculum and inside and outside the classroom. The course suggests that the teaching of climate change should go beyond the science classroom. It proposes a pedagogical framework, exercises, regional resource and facilitation guidelines to teacher educators.