Video/Microlecture: Introduction to Climate Change Economics

A video micro lecture by David Archer, The University of Chicago, titled ‘The Economics of Climate Change’ which is  a part of an e-learning course on science and modelling of climate change. This video discusses the ‘tragedy of commons’ to understand how climate change impacts society. The lecture also introduces concepts like ‘external cost’, ‘internal cost’, ‘carbon tax’ and ‘cap and trade’ when discussing carbon emissions and pollution. Archer discusses the advantages of using economic mechanisms to ensure carbon emissions are controlled. 

Students will be introduced to the basic economics of climate change. They will also learn about the advantages of various economic schemes that can help ensure reduced carbon emissions and control environmental damage. Students will further learn about the ethical concerns that arise in the debate between the cost of climate change and the cost of mitigating climate change. 

 Use this tool to help your students find answers to: 

  1. What is the ‘tragedy of commons’?
  2. Discuss the economics of climate change.
  3. Discuss the ethical concerns that arise due to climate change mitigation policies.

About the tool

Tool NameThe Economics of Climate Change from ‘Week 12: Mitigations’ of ‘Global Warming I: The Science and Modeling of Climate Change’ Coursera Course 
DisciplineEconomics
Topic(s) in DisciplineClimate Change Economics, Tragedy of the Commons, External Cost, Carbon Tax, Cap and Trade, Carbon Emissions
Climate Topic Energy, Economics and Climate Change; Climate Mitigation and Adaptation 
Type of tool Video/Microlecture (9 min)
Grade LevelHigh School, Undergraduate
LocationGlobal
LanguageEnglish
Translation
Developed byDavid Archer, University of Chicago
Hosted atCoursera
LinkLink
AccessOnline
Computer SkillsBasic 

Reading: Long-term Cost of Climate Change

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: 

  1. What does ‘cost of carbon’ imply?
  2. What is the difference between the traditional cost of carbon and the new cost of carbon calculated in this reading?

About the tool

Tool NameClimate change will ultimately cost humanity $100,000 per ton of carbon, scientists estimate
DisciplineEconomics
Topic(s) in DisciplineEnvironmental Economics, Economic Cost, Social Cost of Carbon, Cost of Carbon, Discount Rate
Climate Topic Energy, Economics and Climate Change
Type of tool Reading
Grade LevelHigh School, Undergraduate
LocationGlobal
LanguageEnglish
Translation
Developed byLouise Lerner,  University of Chicago
Hosted atPhys.org by Science X Network
Linkhttps://phys.org/news/2020-09-climate-ultimately-humanity-ton-carbon.html
AccessOnline
Computer SkillsBasic

Reading: Post-pandemic Economic Policies

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 emissions while 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: 

  1. What does ‘green recovery’ mean in the context of post-pandemic economic policies?
  2. What are some of the economic stimulus packages designed by governments for a ‘green recovery’ from the COVID-19 pandemic?
  3. What could be the impact of ‘green recovery’ economic policies for climate mitigation?

About the tool

Tool NameCoronavirus: Tracking how the world’s ‘green recovery’ plans aim to cut emissions 
DisciplineEconomics
Topic(s) in DisciplineEnvironmental Economics, Green Recovery, Carbon Emissions, Stimulus Packages, Carbon Taxes, Quantitative Easing
Climate Topic Policies, Politics and Environmental Governance; Energy, Economics and Climate Change; Climate Mitigation and Adaptation
Type of tool Reading
Grade LevelUndergraduate
LocationGlobal, 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
LanguageEnglish 
Translation
Developed bySimon Evans and Josh Gabbatiss, Carbon Brief
Hosted atCarbon Brief Website
Linkhttps://www.carbonbrief.org/coronavirus-tracking-how-the-worlds-green-recovery-plans-aim-to-cut-emissions
AccessOnline
Computer SkillsBasic

Reading: Economic Recovery post COVID-19

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: 

  1. What is carbon pricing?
  2. How does carbon pricing help to reduce carbon emissions? 
  3. What is the significance of carbon pricing in the economic recovery plans from the COVID-19 pandemic?

About the tool

Tool NamePricing carbon during the economic recovery from the COVID-19 pandemic
DisciplineEconomics
Topic(s) in DisciplineEnvironmental Economics, Carbon Pricing, Carbon Emissions, Economic Policies, Citizen Dividend, Economic Recovery, COVID-19
Climate Topic Policies, Politics and Environmental Governance; Energy, Economics and Climate Change
Type of tool Reading
Grade LevelUndergraduate
LocationGlobal
LanguageEnglish 
Translation
Developed byThe 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 atCentre for Climate Change Economics and Policy (CCCEP) Website
Linkhttps://www.cccep.ac.uk/wp-content/uploads/2020/05/Pricing-carbon-during-the-recovery-from-the-COVID-19-pandemic.pdf
AccessOnline/Offline
Computer SkillsBasic

Video: COVID-19 and CO2 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:

  1. 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.
  2. 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.
  3. Lauri Myllyvirta, Centre for Research on Energy and Clean Air (CREA), discussed his research related to emissions in China and India during the pandemic.
  4. 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:

  1. What is the overall global impact of the COVID-19 pandemic on the CO2 concentrations?
  2. How does the change in CO2 concentrations impact climate change?

About the Tool

Tool NameWebinar: What impact is Covid-19 having on global CO2 emissions?
DisciplineEnvironmental Science; Economics
Topic(s) in DisciplineGreenhouse Gas Emissions, CO2 emissions, COVID-19, Environmental Economics, Atmospheric CO2, Economic Policies
Climate TopicGreenhouse Effect; Energy, Economics and Climate Change
Type of toolVideo (66 mins)
Grade LevelHighschool, Undergraduate
LocationGlobal
LanguageEnglish
Translation
Developed byCarbon Brief 
Hosted atCarbon Brief Website
Linkhttps://www.carbonbrief.org/webinar-what-impact-is-covid-19-having-on-global-co2-emissions?utm_source=Web&utm_medium=contentbox&utm_campaign=Covid-box
AccessOnline
Computer SkillsBasic

Reading: The COVID-19 Pandemic, Recession and Economic Policies

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 emissions while 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: 

  1. What does ‘green recovery’ mean in the context of post-pandemic economic policies?
  2. What are some of the economic stimulus packages designed by governments for a ‘green recovery’ from the COVID-19 pandemic?
  3. What could be the impact of ‘green recovery’ economic policies for climate mitigation?

About the tool

Tool NameCoronavirus: Tracking how the world’s ‘green recovery’ plans aim to cut emissions 
DisciplineEconomics
Topic(s) in DisciplineEnvironmental Economics, Green Recovery, Carbon Emissions, Stimulus Packages, Carbon Taxes, Quantitative Easing
Climate Topic Policies, Politics and Environmental Governance; Energy, Economics and Climate Change; Climate Mitigation and Adaptation
Type of tool Reading
Grade LevelUndergraduate
LocationGlobal, 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
LanguageEnglish 
Translation
Developed bySimon Evans and Josh Gabbatiss, Carbon Brief
Hosted atCarbon Brief Website
Linkhttps://www.carbonbrief.org/coronavirus-tracking-how-the-worlds-green-recovery-plans-aim-to-cut-emissions
AccessOnline
Computer SkillsBasic

Reading: The COVID-19 Pandemic, Carbon Pricing, and Economic Recovery

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: 

  1. What is carbon pricing?
  2. How does carbon pricing help to reduce carbon emissions? 
  3. What is the significance of carbon pricing in the economic recovery plans from the COVID-19 pandemic?

About the tool

Tool NamePricing carbon during the economic recovery from the COVID-19 pandemic
DisciplineEconomics
Topic(s) in DisciplineEnvironmental Economics, Carbon Pricing, Carbon Emissions, Economic Policies, Citizen Dividend, Economic Recovery
Climate Topic Policies, Politics and Environmental Governance; Energy, Economics and Climate Change
Type of tool Reading
Grade LevelUndergraduate
LocationGlobal
LanguageEnglish 
Translation
Developed byThe 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 atCentre for Climate Change Economics and Policy (CCCEP) Website
LinkLink
AccessOnline/Offline
Computer SkillsBasic

Video/Micro lecture: Karl Marx and Climate Change

A short video titled ‘Marxist theory: Relevant to climate change today?’ by Graham Murdock, Loughborough University, that discusses the impact of capitalism on climate change. Murdock discusses Marx’s commentary on the breakdown of the relationship of humans with nature due the industrialization of agricultural practices.

Students will learn the foundations of Marx’s theory of Capitalism and its historical development and  capitalism’s influence on climate change. They will also learn about how rapid industrialization and capitalism have contributed to global warming. They will further learn how Marx’s analysis on ecology could also provide the solutions to problems in the context of climate change

Use this tool to help your students find answers to: 

  1. What are Marx’s main tenets about Capitalism?
  2. What are Marx’s fundamental problems with Capitalism?
  3. Discuss how industrialization and capitalism have contributed to global warming.

About the tool

Tool NameMarxist theory: Relevant to climate change today?
DisciplineEconomics, Social Sciences
Topic(s) in DisciplineMarxist Theory of Capitalism, Marx, Capitalism, Political Science
Climate Topic Energy, Economics and Climate Change, Policies, Politics and Environmental Governance 
Type of tool Video/ Microlecture (11 mins) 
Grade LevelUndergraduate
LocationGlobal 
LanguageEnglish 
Translation
Developed byCGTN
Hosted atYouTube 
Linkhttps://www.youtube.com/watch?v=l-i242fEKyY
AccessOnline
Computer SkillsBasic 

Reading: Marxism and Carbon Markets

A reading titled ‘Greening Capitalism? A Marxist Critique of Carbon Markets’ by Steffan Bohm, Maria Misoczky and Sandra Moog that discusses a Marxist assessment of carbon markets and their role in the evolution of global capitalism and climate change. The reading discusses four major marxist concepts: metabolic rift, capitalism and world ecology, uneven development and accumulation through dispossession, sub-imperialism, to establish a structure for an analysis of carbon markets. The reading further discusses the importance of understanding historical global capitalism development and its link to nature, especially within the Global South. 

Students will learn about Marx’s theories and carbon markets and their role in mitigating climate change. They will also learn about the concept of ‘greening capitalism’ and its role in the future of economic growth and development. Students will further learn about the importance of mapping and acknowledging historical global capitalism development to understand the current state of climate change in the Global South. 

Use this tool to help your students find answers to: 

  1. What is Greening Capitalism? 
  2. Explain the link between history, capitalism and nature in the Global South
  3. Carbon markets could affect capitalist dynamics to achieve a global sustainable economy. Discuss 

About the tool

Tool NameGreening Capitalism? A Marxist Critique of Carbon Markets
DisciplineEconomics, Social Sciences
Topic(s) in DisciplineMarxist Theory of Capitalism, Marx, Capitalism, Greening Capitalism, Historical Materialism
Climate Topic Energy, Economics and Climate Change, Policies, Politics and Environmental Governance 
Type of tool Reading 
Grade LevelUndergraduate, Graduate
LocationGlobal 
LanguageEnglish 
Translation
Developed bySteffan Bohm, Maria Misoczky and Sandra Moog
Hosted atResearch Gate
Linkhttps://www.researchgate.net/publication/239735675_Greening_Capitalism_A_Marxist_Critique_of_Carbon_Markets
AccessOnline/Offline
Computer SkillsBasic 

Video/ Microlecture: Global Warming – A Negative Externality

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: 

  1. What are negative externalities in economics?
  2. What are the negative externalities associated with climate change?

About the tool

Tool NameHoesung Lee on carbon pricing
DisciplineEconomics
Topic(s) in DisciplineExternality, Negative Externality, Carbon Pricing, Carbon Tax, Environmental Protection
Climate Topic Energy, Economics and Climate Change
Type of tool Video/ Microlecture (2 mins)
Grade LevelHigh School, Undergraduate
LocationGlobal 
LanguageEnglish 
Translation
Developed byCarbon Brief
Hosted atYouTube
Linkhttps://www.youtube.com/watch?v=9Wm8-eYdMm0
AccessOnline
Computer SkillsBasic 

Reading: Climate Change – A Market Failure

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: 

  1. How does market failure affect the environment?
  2. What is the ‘greenhouse-gas externality’?
  3. How do market failures influence economic policies?

About the tool

Tool NameWhy do economists describe climate change as a market failure?
DisciplineEconomics
Topic(s) in DisciplineMarket Failure, Carbon Pricing, Carbon Tax, Externalities, Emissions Trading System (ETS), Environmental Protection
Climate Topic Energy, Economics and Climate Change
Type of tool Reading
Grade LevelUndergraduate
LocationGlobal 
LanguageEnglish 
Translation
Developed byAlex Bowen, Simon Dietz and Naomi Hicks
Hosted atGrantham Research Institute on Climate Change and the Environment at The London School of Economics and Political Science (LSE) 
Linkhttps://www.lse.ac.uk/granthaminstitute/explainers/why-do-economists-describe-climate-change-as-a-market-failure/
AccessOnline
Computer SkillsBasic 

Classroom/Laboratory Activity: The Global Climate Change Game

An interactive classroom activity ‘The Global Climate Change Game’ by James Copestake and Tom Ellum, University of Bath, that applies theoretical economic concepts in the context of climate change. The game involves role-play by students to understand.international climate change negotiations between countries influenced by ethics and morals. The game introduces concepts like ‘green spending’ and ‘carbon tax’ and requires students to maximize their countries’ net benefit to avoid catastrophes. 

Students will learn about economic concepts that relate to climate change as well as understand how these concepts function in a global market. They will also learn about the economic decisions and incentives that countries take to reduce the effect of climate change on economic growth and development. Students will further learn about how public good and benefit influences these economic decisions. 

Use this tool to help your students find answers to: 

  1. What is ‘green spending’?
  2. How does public good and benefit influence climate change negotiations?
  3. Compare countries and their greenhouse gas emissions and net economic growth.

About the tool

Tool NameThe Global Climate Change Game
DisciplineEconomics
Topic(s) in DisciplineGreen Spending, Carbon Tax, Climate Change Negotiations, Economic Growth
Climate Topic Energy, Economics and Climate Change
Type of tool Classroom/Laboratory Activity 
Grade LevelUndergraduate
LocationGlobal 
LanguageEnglish 
Translation
Developed byJames Copestake and Tom Ellum
Hosted atThe Economics Network 
Linkhttps://www.economicsnetwork.ac.uk/showcase/copestake_climate#Relating_the_game_to_theoretical_issues
AccessOnline/Offline
Computer SkillsBasic 

Classroom/ Laboratory Activity: Carbon Pricing Dashboard of the World Bank

An interactive visualization tool with map, data and downloadable graphs to understand the carbon pricing initiatives of various nations over a thirty-year period from 1991 to 2021. The tool ‘Carbon Pricing Dashboard- Map & Data’ of the World Bank includes greenhouse gas emissions, carbon prices implemented across different countries and the value of the carbon pricing initiatives  (ETS or Carbon Tax).

Students will be able to  explore data from different regions or countries, download the data/graphs on their carbon pricing data and draw comparisons to improve understanding of the real-world scenario of carbon pricing across various geographies. They will also be able to determine which carbon pricing initiative is most suitable for that region. 

Use this tool to help your students find answers to: 

  1. Discuss the share of the global greenhouse gas emissions by regions from 1991 to 2021 
  2. Carbon pricing is used as an instrument for making climate change policies. Discuss. 

About the tool

Tool NameCarbon Pricing Dashboard 
DisciplineEconomics
Topic(s) in DisciplineEnvironmental Economics, Carbon Pricing, Emissions Trading Systems (ETS) Cost-Benefit Analysis, Greenhouse Gas Emissions 
Climate Topic Energy, Economics and Climate Change 
Type of tool Classroom/ Laboratory Activity  
Grade LevelUndergraduate
LocationGlobal 
LanguageEnglish 
Translation
Developed byThe World Bank
Hosted atThe World Bank
Linkhttps://carbonpricingdashboard.worldbank.org/map_data
AccessOnline
Computer SkillsBasic 

Reading: The Social Cost of Carbon

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: 

  1. Carbon pricing is used as an instrument for making climate policies. Explain.
  2. What is the difference between market prices and shadow prices?
  3. What is the importance of shadow pricing in evaluating the costs of greenhouse gases?

About the tool

Tool NameThe Social Cost of Carbon and the Shadow Price of Carbon: what they are, and how to use them in economic appraisal in the UK 
DisciplineEconomics
Topic(s) in DisciplineEnvironmental Economics, Social Cost of Carbon, Shadow Price of Carbon, Carbon Pricing, Cost-Benefit Analysis, Market Price, Stabilization Goals, Marginal Abatement Cost, Emissions 
Climate Topic Energy, Economics and Climate Change 
Type of tool Reading 
Grade LevelUndergraduate, Graduate
LocationUnited Kingdom 
LanguageEnglish 
Translation
Developed byRichard Price, Simeon Thornton and Stephen Nelson
Hosted atMunich Personal RePEc Archive (MPRA)
Linkhttps://mpra.ub.uni-muenchen.de/74976/1/MPRA_paper_74976.pdf
AccessOnline/Offline 
Computer SkillsBasic 

Reading: Introduction to Carbon Pricing

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 

  1. Main types of carbon pricing
  2. International carbon pricing
  3. Regional, national and subnational carbon pricing
  4. Internal carbon pricing
  5. 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: 

  1. What is carbon pricing?
  2. How is carbon pricing used as an instrument for climate change policies?

About the tool

Tool NameWhat is Carbon Pricing?
DisciplineEconomics
Topic(s) in DisciplineEnvironmental Economics, Carbon Pricing, Carbon Tax, Economic Growth, Climate Change Policies, Decarbonisation 
Climate Topic Energy, Economics and Climate Change; Policies, Politics, and Environmental Governance 
Type of tool Reading 
Grade LevelUndergraduate
LocationGlobal
LanguageEnglish 
Translation
Developed byThe World Bank  
Hosted atThe World Bank
Linkhttps://carbonpricingdashboard.worldbank.org/what-carbon-pricing
AccessOnline
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 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: Pollution Permits and Opportunity Costs

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: 

  1. Define the following:
    1. Opportunity Cost
    2. Production Cost
    3. Cap and Trade
    4. Pollution/Emissions Permit
  2. What are the advantages and disadvantages of using tradable emissions permits in the context of climate change?

About the tool

Tool NameTeaching Opportunity Cost in an Emissions Permit Experiment
DisciplineEconomics
Topic(s) in DisciplineOpportunity Costs, Consumer Choices, Fixed Market price, Tradable Pollution/ Emission Permits, Emission Permit Allocation, Cap and Trade Schemes
Climate Topic Energy, Economics and Climate Change
Type of tool Reading (pp 34 – 42)
Grade LevelUndergraduate
LocationGlobal 
LanguageEnglish 
Translation
Developed byCharles Holt, Erica Myers, Markus Wråke, Svante Mandell and Dallas Burtraw
Hosted atInternational Review of Economics Education, provided by The Economics Network, UK
LinkLink
AccessOnline/Offline
Computer SkillsBasic

Reading: Economic Externalities

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: 

  1. What are negative externalities in economics?
  2. What are the negative externalities associated with climate change?
  3. How can mitigation investments correct negative externalities? 

About the tool

Tool NameGlobal Warming and Economic Externalities
DisciplineEconomics
Topic(s) in DisciplineEconomic Externalities, Negative Externalities, Market Failure, Keynes-Ramsey Growth Model
Climate Topic Energy, Economics and Climate Change
Type of tool Reading
Grade LevelUndergraduate
LocationGlobal 
LanguageEnglish 
Translation
Developed byArmon Rezai, Duncan K. Foley and Lance Taylor
Hosted atResearch Gate
LinkLink
AccessOnline/Offline
Computer SkillsBasic 

Reading: The Stern Review on the Economics of Climate Change Part 1

A reading from the ‘Stern Review: The Economics of Climate Change’ by economist Nicholas Stern for the Government of the United Kingdom which contains a compilation of the scientific evidence of human caused climate change, its analysis through economic theory, and discussion on possible alternatives for development. The reading is subdivided into three chapters, as follows:

  1. The Science of Climate Change: This chapter provides scientific evidence to link the increase in greenhouse gases to climate change along with its impact at the regional and global level. [pp 1 – 22 (as per table of contents) or pp 46 – 67 (as per scrolling)]
  2. Economics, Ethics and Climate Change: This chapter discusses the externalities and the cost-benefit analysis of climate change. It focuses on the risks and uncertainty it may pose to free markets, economic policies, welfare, equity, justice, freedoms and rights. [pp 23 – 40 (as per table of contents) or pp 68 – 85 (as per scrolling)]
  3. Ethical Frameworks and Intertemporal Equity:​​ This chapter looks at the relevance of some technical frameworks such as – intertemporal appraisal, cost-benefit analysis, and discounting, in tackling various challenges posed by climate change. [pp 41 – 54 (as per table of contents) or pp 86 – 99 (as per scrolling)]

Students will learn how to analyse climate change through the lens of economics. They will also learn about the economic activities that have contributed most to greenhouse gas emissions and the possible policy challenges that may arise from it.

Use this tool to help your students find answers to:

  1. How does an increase in the concentration of greenhouse gases cause global warming?
  2. State some of the economic risks and uncertainties caused due to a rise in greenhouse gas emissions?
  3. What is discounting? How is this method used to calculate the economic risks in the Stern Review?

About the Tool

Tool NamePart I: Climate Change: Our Approach from Stern Review: The Economics of Climate Change 
DisciplineEconomics
Topic(s) in DisciplineEconomics of Climate Change, Greenhouse Gas Emissions, Economic Risk, Economic Policy, Cost-Benefit analysis, Discounting, Uncertainty
Climate TopicEnergy, Economics and Climate Change
Type of toolReading (pp 1 to 54 ) –  as per table of contents; (pp 46 – 99) – as per scrolling
Grade LevelHighschool, Undergraduate
LocationGlobal
LanguageEnglish
Translation
Developed byNicholas Stern
Hosted atGrupo de Pesquisa em Mudancas Climaticas (GPMC), Brazil
LinkLink
AccessOnline/Offline
Computer SkillsBasic