A reading titled ‘Why do economists describe climate change as a market failure?’ by Alex Bowen, Simon Dietz and Naomi Hicks, that discusses how since climate change does not maximise societal welfare, it is a market failure. The reading focuses on the ‘greenhouse-gas externality’ that describes the indirect impact of climate change on future generations and in developing countries. The reading also discusses the implications of externalities and market failures for economic policies to reduce carbon emissions and switch to low-carbon technologies.
Students will learn about how climate change can influence markets and policies. They will also learn about externalities, market failures and low-carbon initiatives. Students will further learn about how market failures and externalities can influence economic policies with regards to climate change.
Use this tool to help your students find answers to:
How does market failure affect the environment?
What is the ‘greenhouse-gas externality’?
How do market failures influence economic policies?
About the tool
Tool Name
Why do economists describe climate change as a market failure?
An audio conversation with Christopher Knittel, MIT, about carbon pricing and its impact on individual lifestyle. This audio podcast looks at the complexities of carbon pricing, its type, approximate individual cost and public policy around it.
Students will learn about the basics of carbon pricing and be introduced to carbon tax, cap and trade, and how and what such a tax will be used for. They will learn what carbon tax would mean for an individual consumer and what incentives can be used to create lifestyle changes towards a more sustainable consumption. Additionally, students will also look at the alternatives to carbon pricing.
Use this tool to help your students find answers to:
What is carbon pricing?
What are the common policies associated with carbon pricing?
How does carbon tax affect individual consumption?
How should the government use the carbon taxes?
About the Tool
Tool Name
E7: TIL about carbon pricing
Discipline
Economics
Topic(s) in Discipline
Carbon Pricing, Carbon Tax, Cap and Trade, Public Policy
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:
What is ‘willingness to pay’?
How to measure willingness to pay for non-market goods like abatement to pollution?
What is Cronbach’s alpha? How is it used to assess indices for internal consistency?
About the tool
Tool Name
Measuring Willingness to Pay for Climate Change Mitigation
Discipline
Economics
Topic(s) in Discipline
Willingness to Pay (WTP), Likert Scale, Cronbach’s Alpha, Value of Abatement, Contingent Valuation, Climate Change Economics
Climate Topic
Climate Mitigation and Adaptation; Energy, Economics and Climate Change; Policies, Politics and Environmental Governance
A reading titled ‘Global Warming and Economic Externalities’ by Armon Rezai, Duncan K. Foley and Lance Taylor, that discusses greenhouse gases (GHG) as a negative externality in global markets. The reading discusses the effect of mitigation investments on the economic well being of current and future generations. It also demonstrates how equilibrium theory can correct negative externalities through the use of the Keynes-Ramsey growth model.
Students will learn about global warming, equity, and externalities. They will understand concepts such as ‘business-as-usual’ that influence market optimisation and impact climate change. Students will further learn about the market failure of climate change and the required mitigation investment to correct it.
Use this tool to help your students find answers to:
What are negative externalities in economics?
What are the negative externalities associated with climate change?
How can mitigation investments correct negative externalities?
About the tool
Tool Name
Global Warming and Economic Externalities
Discipline
Economics
Topic(s) in Discipline
Economic Externalities, Negative Externalities, Market Failure, Keynes-Ramsey Growth Model
A reading by Holt et al. in the International Review of Economics Education, provided by The Economics Network, UK, that can be used for a classroom/laboratory activity to teach your students to identify and account for opportunity costs in production decisions.
Students will learn about opportunity costs and tradable emission permits as a part of the cap and trade scheme. They will also learn of challenges in decision-making through a role-playing activity in which the students get to set production quantities within the limits of their emissions permits.
Use this tool to help your students find answers to:
Define the following:
Opportunity Cost
Production Cost
Cap and Trade
Pollution/Emissions Permit
What are the advantages and disadvantages of using tradable emissions permits in the context of climate change?
About the tool
Tool Name
Teaching Opportunity Cost in an Emissions Permit Experiment
Discipline
Economics
Topic(s) in Discipline
Opportunity Costs, Consumer Choices, Fixed Market price, Tradable Pollution/ Emission Permits, Emission Permit Allocation, Cap and Trade Schemes, Carbon Emissions
Climate Topic
Energy, Economics and Climate Change
Type of tool
Reading (pp 34 – 42)
Grade Level
Undergraduate
Location
Global
Language
English
Translation
Developed by
Charles Holt, Erica Myers, Markus Wråke, Svante Mandell and Dallas Burtraw
Hosted at
International Review of Economics Education, provided by The Economics Network, UK
A reading titled ‘The Social Cost of Carbon and the Shadow Price of Carbon’ by Richard Price, Simeon Thornton and Stephen Nelson Department for Environment, Food and Rural Affairs (Defra), London, that discusses the topics of social cost of carbon (SCC) and shadow pricing of carbon (SPC) when formulating appraisals and climate change policies. This resource uses the United Kingdom (UK) as the area of study but can also be used for other regions. The reading introduces the concepts of shadow prices and market prices and explains the link between them. It includes discussions on the benefits of calculating both the SCC and the SPC to reflect the overall cost of greenhouse gas emissions to determine a well-informed stabilisation goal. It further includes discussions to understand the importance of climate informed policies in the economic assessment of a country.
Students will learn about the social cost of carbon and the shadow price of carbon. They will learn how to compare the marginal abatement costs and social costs of carbon for different stabilization goals as determined by the Stern Review. Students will further learn the application of the SCC and the SPC when determining cost-effectiveness of resources, the concepts of discounting and discount rates for calculating carbon prices
Use this tool to help your students find answers to:
Carbon pricing is used as an instrument for making climate policies. Explain.
What is the difference between market prices and shadow prices?
What is the importance of shadow pricing in evaluating the costs of greenhouse gases?
About the tool
Tool Name
The Social Cost of Carbon and the Shadow Price of Carbon: what they are, and how to use them in economic appraisal in the UK
Discipline
Economics
Topic(s) in Discipline
Environmental Economics, Social Cost of Carbon, Shadow Price of Carbon, Carbon Pricing, Cost-Benefit Analysis, Market Price, Stabilization Goals, Marginal Abatement Cost, Emissions
A webinar by Carbon Brief on the impacts of the COVID-19 pandemic on global carbon dioxide (CO2) emissions. The webinar includes discussions by the following climate scientist and analysts:
Corinne Le Quéré, University of East Anglia, presented that CO2 released due to human activities fell by seventeen percent by April, 2020. This temporarily brought down the emissions to the levels observed in the year 2006.
Richard Betts, University of Exeter, said that while the CO2 concentrations were only eleven percent of the expected emissions for 2020, they have continued to rise and accumulate in the atmosphere.
Lauri Myllyvirta, Centre for Research on Energy and Clean Air (CREA), discussed his research related to emissions in China and India during the pandemic.
Zeke Hausfather, director of Breakthrough Institute, discusses how 2019 might be the peak year for CO2 emissions.
Students will learn about the perspectives of various researchers and their interpretation of the CO2 concentrations recorded during the pandemic. They will also be introduced to various future predictions of emissions in different sectors, countries and under different policies.
Use this tool to help your students find answers to:
What is the overall global impact of the COVID-19 pandemic on the CO2 concentrations?
How does the change in CO2 concentrations impact climate change?
About the Tool
Tool Name
Webinar: What impact is Covid-19 having on global CO2 emissions?
Discipline
Environmental Science; Economics
Topic(s) in Discipline
Greenhouse Gas Emissions, CO2 emissions, COVID-19, Environmental Economics, Atmospheric CO2, Economic Policies, COVID-19 Pandemic and the Economy
Climate Topic
Greenhouse Effect; Energy, Economics and Climate Change
A policy brief by The Grantham Research Institute on Climate Change and the Environment, London School of Economics and Policy and the Centre for Climate Change Economics and Policy (CCCEP), University of Leeds on the significance of carbon pricing for reducing carbon emissions in the context of post COVID-19 pandemic economic recovery.
Students will learn about carbon pricing, citizen dividend, and green recovery policies. They will be introduced to green economic policies such as zero-carbon investments, removal of fossil-fuel subsidies, and using carbon pricing revenues for economic recovery. Additionally, they will also understand why carbon pricing is an effective strategy to reduce carbon emissions worldwide while simultaneously providing better government revenue than traditional taxation policies.
Use this tool to help your students find answers to:
What is carbon pricing?
How does carbon pricing help to reduce carbon emissions?
What is the significance of carbon pricing in the economic recovery plans from the COVID-19 pandemic?
About the tool
Tool Name
Pricing carbon during the economic recovery from the COVID-19 pandemic
Discipline
Economics
Topic(s) in Discipline
Environmental Economics, Carbon Pricing, Carbon Emissions, Economic Policies, Citizen Dividend, Economic Recovery, COVID-19, COVID-19 Pandemic and the Economy
Climate Topic
Policies, Politics and Environmental Governance; Energy, Economics and Climate Change
Type of tool
Reading
Grade Level
Undergraduate
Location
Global
Language
English
Translation
Developed by
The Grantham Research Institute on Climate Change and the Environment, London School of Economics and Policy and the Centre for Climate Change Economics and Policy (CCCEP), University of Leeds
Hosted at
Centre for Climate Change Economics and Policy (CCCEP) Website
A reading by the World Bank Group that introduces what is carbon pricing and discusses the link between carbon pricing and climate change policies. The reading includes sections on
Main types of carbon pricing
International carbon pricing
Regional, national and subnational carbon pricing
Internal carbon pricing
How to do carbon pricing right
Students will learn about carbon pricing and economic policy, decarbonisation, clean technology and market innovation. They will also learn about how carbon pricing can influence economic development and growth and inform climate change policies. Students will further learn about the types of carbon pricing that governments and businesses refer to in order to make well informed economic decisions.
Use this tool to help your students find answers to:
What is carbon pricing?
How is carbon pricing used as an instrument for climate change policies?
A journal article by William Nordhaus on the critical role of the social cost of carbon (SCC) in determining climate change economics and policies. This paper estimates the SCC using the Dynamic Integrated model of Climate and the Economy (DICE model).
Students will understand the application of the DICE model to calculate the SCC in the development of climate change policies. They will also learn how the SCC is central in climate change regulatory policies.
Use this tool to help your students find answers to:
“The most important single economic concept in the economics of climate change is the social cost of carbon (SCC).” Discuss.
Describe the DICE model and its application in determining the SCC.
How does the SCC affect the economic growth of a country? Explain through examples
About the Tool
Tool Name
Revisiting the social cost of carbon
Discipline
Economics
Topic(s) in Discipline
Social Cost of Carbon, DICE model, Climate Change Policy, Climate Economics, Economic Policy, Econometrics
Climate Topic
Energy, Economics and Climate Change
Type of Tool
Reading
Grade Level
Undergraduate, Graduate
Location
Global
Language
English
Translation
–
Developed by
William D. Nordhaus (Yale University)
Hosted at
Proceedings of the National Academy of Sciences of the United States of America
A model/simulator to understand the prediction of peak global oil production, and to learn about oil as an energy source, its peak and reserves, and the economics and geopolitics of oil.
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:
What are ‘climate commons?
How does willingness to cooperate through voluntary adaptation of green consumer behaviour differ from forceful implementation of costly public policy?
What is the ‘zero-contribution’ proposition and why did the study reject it?
About the tool
Tool Name
Cooperation in the Climate Commons
Discipline
Economics
Topic(s) in Discipline
Economic Theory, Willingness to Cooperate, Public Policy, Climate Commons, Global Commons, Tragedy of the Commons, Mitigation, Economic Policy, Tragedy of the Commons
Climate Topic
Climate Mitigation and Adaptation; Energy, Economics and Climate Change; Policies, Politics and Environmental Governance
Type of tool
Reading (pp 1 – 32)
Grade Level
Undergraduate
Location
Global,
Language
English
Translation
Developed 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. Authored by Stefano Carattini, Simon Levin and Alessandro Tavoni
Hosted at
Centre for Climate Change Economics and Policy, UK
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:
Section 1 describes the characteristics of WTP as an empirical tool for climate stability.
Section 2 discusses literature review on WTP for climate policy, through to social and behavioural aspects.
Section 3 explains calculations used and the results of comparison of various studies.
Section 4 discusses a new research agenda to improve factors for identifying WTP.
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:
What is willingness to pay (WTP)?
How is WTP calculated with regards to climate policy?
What factors are commonly used to define willingness to change and how can they be improved?
About the tool
Tool Name
Willingness to Pay for Climate Policy: A Review of Estimates
Discipline
Economics
Topic(s) in Discipline
Willingness to Pay (WTP), Economic Theory, Public Policy, Integrated Assessment Model, Consumer Psychology, Economic Policy
Climate Topic
Climate Mitigation and Adaptation; Energy, Economics and Climate Change; Policies, Politics and Environmental Governance
Type of tool
Reading (pp 1 – 32)
Grade Level
Undergraduate
Location
Global
Language
English
Translation
Developed by
Evan Johnson and Gregory Nemet, Robert M. La Follete School of Public Affairs at the University of Wisconsin-Madison
A reading by Louise Lerner, The University of Chicago, that summarises the economic cost of carbon as viewed from the perspective of geologists. This research challenges the traditional cost of carbon, which has been priced at $100 per ton of carbon emission, by stating the cost of carbon to be between $10,000 to $750,000 depending on the geophysical and economic scenarios.
Students will learn about the cost of carbon, discount rate, climate models, and socioeconomic costs amongst others. They will learn the difference between short term and long term carbon cost modelling and why a carbon cost of $100 does not give a holistic scenario of the impacts of carbon emissions.
Use this tool to help your students find answers to:
What does ‘cost of carbon’ imply?
What is the difference between the traditional cost of carbon and the new cost of carbon calculated in this reading?
About the tool
Tool Name
Climate change will ultimately cost humanity $100,000 per ton of carbon, scientists estimate
Discipline
Economics
Topic(s) in Discipline
Environmental Economics, Economic Cost, Social Cost of Carbon, Cost of Carbon, Discount Rate
A short video by Hoesung Lee, Korea University and vice-chair of the Intergovernmental Panel on Climate Change (IPCC) on carbon pricing and climate change. The video discusses the importance of putting a price on carbon emissions and related activities since climate change is an example of a global externality. Lee further explains the linkages of the environment with
economic growth and development.
Students will learn the concept of global warming as a negative externality. They will also understand the importance of putting a price on carbon emissions to reduce global warming and the need for global cooperation.
Use this tool to help your students find answers to:
What are negative externalities in economics?
What are the negative externalities associated with climate change?
A reading by Carbon Brief explaining how countries around the world design economic policies for a ‘green recovery’ from the recession due to the COVID-19 pandemic, by reducing carbon emissionswhile boosting their economies.
Students will be introduced to terms such as green recovery, green stimulus, and quantitative easing, among others. Through use of the in-built interactive grid, they will also learn about the measures aimed at reducing carbon emissions – referred to as ‘green’ measures – for several major economies such as the United Kingdom, European Union, China, and India. Additionally, they will understand the application of monetary policy such as stimulus packages, unconditional bailouts, grants, loans, and tax reliefs for a post-pandemic green economic recovery.
Use this tool to help your students find answers to:
What does ‘green recovery’ mean in the context of post-pandemic economic policies?
What are some of the economic stimulus packages designed by governments for a ‘green recovery’ from the COVID-19 pandemic?
What could be the impact of ‘green recovery’ economic policies for climate mitigation?
About the tool
Tool Name
Coronavirus: Tracking how the world’s ‘green recovery’ plans aim to cut emissions
Discipline
Economics
Topic(s) in Discipline
Environmental Economics, Green Recovery, Carbon Emissions, Stimulus Packages, Carbon Taxes, Quantitative Easing, COVID-19 Pandemic and the Economy
Climate Topic
Policies, Politics and Environmental Governance; Energy, Economics and Climate Change; Climate Mitigation and Adaptation
Type of tool
Reading
Grade Level
Undergraduate
Location
Global, USA, Poland, Canada, Sweden, Norway, Chile, Colombia, Ireland, Spain, Italy, New Zealand, France, Nigeria, Finland, United Kingdom, China, India, Denmark, European Union, South Korea, Germany
A reading from the ‘Stern Review: The Economics of Climate Change’ by economist Nicholas Stern for the Government of the United Kingdom which contains predictions on mortality, ecosystems and income levels. This reading includes results of their modelling that states that climate change will cause an average of 5% reduction in the global per capita consumption over the next 2 centuries, with an addition of 145 – 220 million people falling below poverty line in South Asian and sub-Saharan Africa by 2100, and an expected increase in child mortality to 165,000 – 250,000 children per year. The reading is subdivided into four chapters, as follows:
How climate change will affect people around the world: This chapter draws correlations between climate change and potential implications for access to food, water stress, health and well-being, land and the environment. It gives a detailed analysis of global warming implications from 1ºC rise up to temperature change of 5ºC and above. [pp 55 – 91 (as per table of contents) or pp 100 – 136 (as per scrolling)]
Implications of climate change for development: This chapter looks at developing countries and their vulnerability to climate change due to their dependence on climate sensitive sectors such as agriculture. Apart from food insecurity and damage to the healthcare systems, there will be mass migrations and conflict which will hamper growth and development. [pp 92 – 121 (as per table of contents) or pp 137 – 166 (as per scrolling)]
Costs of climate change in developed countries: This chapter looks at the impacts of climate change on the developed countries and explains how for moderate amounts of warming some higher latitude countries will face short-term benefits due to rise in agriculture yields, lower winter mortality, lower heating requirements and possible boosts in tourism. However, they will face disastrous impacts due to climate shocks at higher temperatures. [pp 122 – 142 (as per table of contents) or pp 167 – 187 (as per scrolling)]
Economic modelling of climate change impacts: This chapter details the modelling work conducted for estimating the monetary impact of climate change by using an Integrated Assessment Model with a temperature rise of 2-3ºC as the starting point. [pp 143 – 167 (as per table of contents) or pp 188 – 212 (as per scrolling)]
Students will learn how melting glaciers, crop yield decline, ocean acidification, displacement, malnutrition, rising sea levels and species extinction will impact the global economy through empirical analysis. They will also learn what makes developing countries most vulnerable to climate change. They will understand how certain adverse effects of climate change are already underway and early mitigation may be the only way to control the impacts.
Use this tool to help your students find answers to:
How will a 2ºC temperature rise scenario differ from a 4ºC temperature rise scenario?
Discuss climate vulnerabilities of:
Developed Countries
Developing Countries
Define and explain the ‘Mendelsohn’ model, the ‘Tol’ model, and the ‘Nordhaus’ model.
About the Tool
Tool Name
Part II: The Impacts of climate change on growth and development from Stern Review: The Economics of Climate Change
Discipline
Economics
Topic(s) in Discipline
Economics of Climate Change, Macroeconomics, Microeconomics, International Economics, Econometrics, Integrated Assessment Model, Per Capita Consumption, GDP, Economic Growth
Climate Topic
Energy, Economics and Climate Change; Policies, Politics and Environmental Governance
Type of tool
Reading (pp 55 to 167 ) – as per table of content; (pp 100 – 212) – as per scrolling
Grade Level
Undergraduate, Graduate
Location
Global
Language
English
Translation
Developed by
Nicholas Stern
Hosted at
Grupo de Pesquisa em Mudancas Climaticas (GPMC), Brazil
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:
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)]
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)]
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)]
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)]
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)]
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)]
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:
What will happen if we continue with the ‘business-as-usual’ scenario of greenhouse gas emissions?
State cost-effective methods and techniques to reduce greenhouse gas emission.
How does The Review calculate marginal costs and marginal benefits of climate change policy?
About the Tool
Tool Name
Part III: The economics of stabilisation from Stern Review: The Economics of Climate Change
Discipline
Economics
Topic(s) in Discipline
Economics of Climate Change, Macroeconomics, Microeconomics, International Economics, Integrated Assessment Model, Cost-Benefit Analysis, Economic Policy, Competitive Market Policies
Climate Topic
Energy, Economics and Climate Change; Climate Mitigation and Adaptation; Policies, Politics and Environmental Governance
Type of tool
Reading (pp 168 to 307) – as per table of content; (pp 213 – 352) – as per scrolling
Grade Level
Undergraduate, Graduate
Location
Global
Language
English
Translation
Developed by
Nicholas Stern
Hosted at
Grupo de Pesquisa em Mudancas Climaticas (GPMC), Brazil
A reading from the ‘Stern Review: The Economics of Climate Change’ by economist Nicholas Stern for the Government of the United Kingdom which looks at policy response to climate change. Some of the main policies discussed in this reading are carbon pricing, technology advancement, and policies related to availability of information and consumer behaviour. The reading is subdivided into three chapters, as follows:
Harnessing markets to reduce emissions: This section looks at the types of carbon pricing and policy designs focusing on taxation and trading. It also discusses the difference between the two and how taxation and trading impacts regional and global policy makers differently. [pp 309 – 323 (as per table of contents) or pp 354 – 368 (as per scrolling)]
Carbon pricing and emission markets in practice: This section looks at the practicality of carbon pricing and its application in various sectors. It mainly focuses on the credibility, flexibility and predictability in policy design for carbon pricing. [pp 324 – 346 (as per table of contents) or pp 369 – 391 (as per scrolling)]
Accelerating technological innovation: This section focuses on the motivation behind technology policies specifically focusing on sectors such as power generation, transportation and energy use. It also states the need to invest in R&D for improving existing technologies. [pp 347 – 376 (as per table of contents) or pp 392 – 421 (as per scrolling)]
Beyond carbon markets and technology: This section looks at consumer behaviour and policies that remove barriers that stop individuals from taking action. It also looks at how policies can be used to influence preferences and behaviours – focusing mainly on the energy sector. [pp 377 – 402 (as per table of contents) or pp 422 – 447 (as per scrolling)]
Students will learn about economic policies that focus on reduction of carbon such as carbon pricing, cap and trade, energy production, usage and distribution policies and policies that can change consumer behaviour. They will get a holistic view of how economic policies are designed and how they impact individuals and key economic sectors.
Use this tool to help your students find answers to:
What is ‘Carbon Pricing’?What is the difference between carbon taxation and carbon trading?
Is carbon pricing a practical solution to climate change?
What are some examples of efficient policy making in the energy sector?
About the Tool
Tool Name
Part IV: Policy responses for mitigation from Stern Review: The Economics of Climate Change
Discipline
Economics
Topic(s) in Discipline
Economics of Climate Change, Macroeconomics, Microeconomics, International Economics, Economic Policy, Competitive Market Policies, Economics of Energy, Carbon Pricing, Cap and Trade
Climate Topic
Energy, Economics and Climate Change
Type of tool
Reading (pp 308 to 402) – as per table of content; (pp 353 to 447 ) – as per scrolling
Grade Level
Highschool, Undergraduate
Location
Global
Language
English
Translation
Developed by
Nicholas Stern
Hosted at
Grupo de Pesquisa em Mudancas Climaticas (GPMC), Brazil
A reading from the ‘Stern Review: The Economics of Climate Change’ by economist Nicholas Stern for the Government of the United Kingdom which analyses adaptation as a response to reducing vulnerability to climate change. The reading is subdivided into three chapters, as follows:
Understanding the economics of adaptation: This section states the key adaptation concepts. It also gives an economic framework for the same. [pp 404 – 415 (as per table of contents) or pp 448 – 460 (as per scrolling)]
Adaptation in the developed world: This section looks into the barriers and challenges to adaptation. It focuses on how developed countries can promote adaptation through policy and information dissemination. [pp 416 – 429 (as per table of contents) or pp 461 – 474 (as per scrolling)]
The role of adaptation in sustainable development: This section looks at the challenges faced by developing countries in adapting to climate change and the emphasises the need for support from the international community. [pp 430 – 447 (as per table of contents) or pp 475 – 492 (as per scrolling)]
Students will learn how the cost of adaptation differs depending on the availability of infrastructure, financial capability and access to public services. They will also be able to calculate the cost of adaptation depending on if there are prior mitigation policies and different climate scenarios.
Use this tool to help your students find answers to:
How effective are adaptation strategies to climate change?
How does adaptation differ for developed and developing countries?
About the Tool
Tool Name
Part V: Policy responses for adaptation from Stern Review: The Economics of Climate Change
Discipline
Economics
Topic(s) in Discipline
Economics of Climate Change, Macroeconomics, Microeconomics, International Economics, Economic Policy, Adaptation, Mitigation, Cost-Benefit Analysis
Climate Topic
Energy, Economics and Climate Change; Climate Mitigation and Adaptation
Type of tool
Reading (pp 403 to 447) – as per table of content; (pp 448 to 492) – as per scrolling
Grade Level
Highschool, Undergraduate
Location
Global
Language
English
Translation
Developed by
Nicholas Stern
Hosted at
Grupo de Pesquisa em Mudancas Climaticas (GPMC), Brazil
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