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 

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 DisciplineMarxism, Marxist 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 

Audio/Reading: Air Travel and Carbon Offset

A short audio and reading by MPR News on ‘Carbon Offset’ that gives an overview of what carbon offsets mean and how you can purchase them. It talks about the emission reduction that is linked to the travel industry through the principle of carbon credit.

Students will learn about carbon credit, emissions reduction, and carbon offset in the airline travel industry. They will also learn how consumers of air travel can buy carbon offsets to reduce individual carbon footprint and reduce deforestation.

Use this tool to help your students find answers to:

  1. What is carbon offsetting?
  2. How can buying carbon credit reduce individual carbon emission?

About the Tool

Tool NameCarbon offsets 101: How they work and how to get the biggest bang for your buck
DisciplineEconomics
Topic(s) in DisciplineCarbon Credit, carbon Offset, Emission reduction, Greenhouse Gas Reduction, Carbon Footprint
Climate TopicEnergy, Economics and Climate Change
Type of toolAudio (7 mins)
Grade LevelUndergraduate, Graduate
LocationGlobal
LanguageEnglish
Translation
Developed byPaul Huttner and Megan Burks
Hosted atMPR News
LinkLink
AccessOnline
Computer SkillsBasic

Teaching Module: Economic Trade-offs

A teaching module titled ‘Choices’ from a course on climate change by the Fraser Institute. This teaching module will help students understand the importance of trade-offs and evaluate the costs and benefits of climate change proposals.

Students will learn about carbon emissions, trade-offs, opportunity costs, and resource use. They will be exposed to two types of trade-offs: resource trade-offs and policy trade-offs. Through the ‘Birthday Money’ activity, students will learn how cost can be managed given a fixed income and how increase in costs can impact overall resource use and distribution.

Use this tool to help your students find answers to:

  1. Given the annual income of your household, how will housing costs change with a 10% rise in costs due to climate change?
  2. What are the trade-offs made by policy makers in order to meet the demands of stakeholders?

About the Tool

Tool NameChapter 6: Choices from Understanding Climate Change: Lesson Plans for the Classroom
DisciplineEconomics
Topic(s) in DisciplineTrade-offs, Cost-Benefit Analysis, Opportunity Costs, Emission Costs, Carbon Trade-offs, Economic Policy
Climate TopicEnergy, Economics and Climate Change
Type of toolTeaching Module
Grade LevelUndergraduate, Graduate
LocationGlobal
LanguageEnglish
Translation
Developed byFraser Institute
Hosted atFraser Institute Website
LinkLink
AccessOnline/ Offline
Computer SkillsBasic

Classroom/ Laboratory Activity: Climate Change and Trade Policies

A classroom/ laboratory activity by Alan Green, Stetson University, that uses a team debate approach for a two-step discussion on trade policies. The first step is a discussion on the long term trend of declining employment in manufacturing in the U.S. The second step is a discussion on the challenge of climate change and international trade agreements.

Students will learn to apply economic models and analysis to support their arguments on relevant policy issues. They will also learn about protectionist measures, demand-supply analysis, direct and indirect compensation, manufacturing trends, and international trade. 

Use this tool to help your students find answers to:

  1. What are some protectionist policies to counter decline in manufacturing?
  2. How is international trade impacted by climate change?
  3. How can trade agreements be more inclusive of climate change threats?

About the Tool

Tool NameTrade Applications: Addressing the Decline of Manufacturing and the Challenge of Climate Change Through Trade Policy
DisciplineEconomics
Topic(s) in DisciplineEconomic Trade, Trade Policy, Trade Agreements, Demand and Supply, International Trade
Climate TopicEnergy, Economics and Climate Change; Policies, Politics and Environmental Governance
Type of toolClassroom/ Laboratory Activity (50-75 mins)
Grade LevelUndergraduate, Graduate
LocationGlobal
LanguageEnglish
Translation
Developed byAlan Green, Stetson University
Hosted atStarting Point: Teaching and Learning Economics
LinkLink
AccessOnline
Computer SkillsBasic

Audio: Climate Action and Capitalism

An audio conversation between Jason Jay, director of the MIT Sloan Sustainability Initiative, and Rajesh Kasturirangan and Curt Newton, from The Climate Conversations, to discuss the role of market forces and government regulation in climate action. They discuss the theoretical framework of capitalism – its heroic value as well as exploitative nature. They also analyse geopolitical interests in fossil fuels and alternative energies, and the challenges of transitioning to green energy.

Students will learn about climate action and climate justice at an individual level through parallels from geopolitical discussions. They will also learn about the limitations and challenges of capitalism in enabling ‘authentic’ conversations around climate action. Students will also learn how to create conversation around climate change by the use of shared values to understand and discover better solutions.

Use this tool to help your students find answers to:

  1. What is capitalism and how has it impacted climate action?
  2. Why is it difficult to have open and authentic conversations about climate action?

About the Tool

Tool NameClimate Conversations S2E12: Market Forces and Climate Action
DisciplineEconomics
Topic(s) in DisciplineCapitalism, Climate Action, Climate Justice, Market Forces
Climate TopicClimate and Society; Energy, Economics and Climate Change
Type of toolAudio (35 mins)
Grade LevelUndergraduate, Graduate
LocationGlobal
LanguageEnglish
Translation
Developed byClimateX Team
Hosted atClimate Portal
LinkLink
AccessOnline
Computer SkillsBasic

Reading: Overview of the “Stern Review: The Economics of Climate Change”

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 possible climate policies. This comprehensive documents is divided into six main sections as mentioned below:

  1. Part I: Climate change: our approach
    1. The science of climate change
    2. Economics, ethics and climate change
    3. Technical annex: ethical frameworks and intertemporal equity
  2. Part II: The Impacts of climate change on growth and development
    1. How climate change will affect people around the world
    2. Implications of climate change for development 
    3. Costs of climate change in developed countries 
    4. Economic modelling of climate change impacts
  3. Part III: The economics of stabilisation
    1. Projecting the growth of greenhouse gas emissions 
    2. Annex: Climate change and the environmental Kuznets curve 
    3. The challenge of stabilisation 
    4. Identifying the costs of mitigation 
    5. Macroeconomic models of costs 
    6. Structural change and competitiveness 
    7. Annex: Key statistics for 123 UK production sectors 
    8. Opportunities and wider benefits from climate policies 
    9. Towards a goal for climate change policy
  4. Part IV: Policy responses for mitigation
    1. Harnessing markets to reduce emissions 
    2. Carbon pricing and emission markets in practice 
    3. Accelerating technological innovation 
    4. Beyond carbon markets and technology 
  5. Part V: Policy responses for adaptation
    1. Understanding the economics of adaptation 
    2. Adaptation in the developed world 
    3. The role of adaptation in sustainable development
  6. Part VI: International collective action
    1. Framework for understanding international collective action for climate change 
    2. Creating a global price for carbon 
    3. Supporting the transition to a low carbon global economy 
    4. Promoting effective international technology co-operation 
    5. Reversing emissions from land use change 
    6. International support for adaptation 
    7. Conclusions 

Use this tool to help your students find answers to:

  1. State how the current rate of climate change is linked to anthropogenic activities.
  2. How does climate change impact developed and developing countries differently?
  3. What is carbon pricing? How effective is it in tackling the issue of climate change and economic development?
  4. What are some effective policy frameworks for sustainable development?

About the Tool

Tool NameStern Review: The Economics of Climate Change 
DisciplineEconomics
Topic(s) in DisciplineClimate Change Economics, Macroeconomics, Microeconomics, International Economics, Economic Policy, Competitive Market Policies, Economics of Energy, Carbon Pricing
Climate TopicEnergy, Economics and Climate Change
Type of toolReading
Grade LevelHighschool, Undergraduate
LocationGlobal
LanguageEnglish
Translation
Developed byNicholas Stern
Hosted atGrupo de Pesquisa em Mudancas Climaticas (GPMC), Brazil
LinkLink
AccessOnline/Offline
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, COVID-19 Pandemic and the Economy, Economic Recovery, Economic Policy
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: Naomi Klein on Capitalism and Climate Change

This reading is a comprehensive overview of how capitalism has shaped our response and reaction to climate change. This book is divided into three parts – Bad Timing, Magical thinking and Starting Anyway. Bad timing deals with how Free Market Fundamentalism, Invisible Hand and similar economic ideologies are used to fuel and promote climate denial culture and ecological amnesia. Magical Thinking tackles the issues of the ‘carbon credit’ scam led by a merger between Big Business and Big Green and how it allows consumers to buy into the philosophy of pollution being the solution to pollution. Starting Anyway points to the achievements by climate warriors, incidents where democracy has won, and the power of Indigenous Rights movements. This book also includes how economies and policies can move away from ‘extractivism’ and towards renewals.

Each of these sections will introduce students to a school of thought within capitalism and how that is being used to manipulate the consumer perspective towards Climate Change. It will help them understand the psychological implications of Free Market, Invisible Hands, Green Billionaire, and Extractivist Policies. Students will also be introduced to Atmospheric Commons, Ecological Amnesia, and Climate Denial Science. It will provide them with a good balance of which economics practices have worked and which haven’t to help get a full picture of how capitalism affects climate change.

Use this tool to help your students find answers to:

  1. What is Capitalism? Name some Capitalist ideologies and Theories.
  2. How has capitalism shaped our perception of and response to climate change?
  3. What can we learn from success stories to help make economic practices and policies sustainable?

About the Tool

Tool Name Naomi Klein: This Changes Everything – Capitalism vs. The Climate
Discipline Economics, Social Sciences, Humanities
Topic(s) in Discipline Capitalism, Free Market Economy, Invisible Hand, Green Economy, Atmospheric Commons, Social Theory, Culture and Cultural Studies
Climate Topic Energy, Economics and Climate Change, Climate and Society, Climate and Food Security, Policies, Politics and Environmental Governance
Type of Tool Reading (505 pages)
Grade Level Undergraduate, Graduate
Location Global
Language English
Translation
Developed by Naomi Klein (author)
Hosted at Internet Archive Python library 0.6.3
Link Link
Access Online and Offline (downloadable)
Computer Skills Basic

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 

Video: Naomi Klein discusses ‘This Changes Everything’

A video by award-winning journalist, author and filmmaker, Naomi Klein, at the Cambridge Forum about her book titled, ‘This Changes Everything’. In this video, Naomi Klein summarizes her book and explains why she thinks that capitalism is the real cause for climate change.

Students will learn how capitalism, specifically the ‘free-market’ ideology, has ultimately led to the current climate crisis. They will further learn, through examples and case studies, about the benefactors of the market-economy, current power structures and how they impact the political economy. They will also learn about the challenges faced to restructure the global economy and current political systems.

Use this tool to help your students find answers to:

  1. What is capitalism?
  2. How have capitalistic policies caused climate change?
  3. What economic reforms can transform market practices?

About the Tool

Tool NameNaomi Klein: This Changes Everything – Capitalism vs. The Climate
DisciplineEconomics, Social Sciences
Topic(s) in DisciplineCapitalism, Free Market Economy, Invisible Hand Theory, Green Economy, Economic Policies, Economic Mergers, Atmospheric Commons
Climate TopicPolicy, Politics and Environmental Governance; Energy, Economics and Climate Change; Climate and Society
Type of toolVideo (73 mins)
Grade LevelHigh School, Undergraduate
LocationGlobal, USA
LanguageEnglish
Translation
Developed byNaomi Klein at the Cambridge Forum, recorded by GBH Forum Network
Hosted atYouTube
Linkhttps://www.youtube.com/watch?v=Q8Yyd5dxTGE
AccessOnline
Computer SkillsBasic

Audio: Economic solutions for Climate Change

 

As a teacher of Economics, this podcast can teach your students about Environmental Resources and Energy Economics, and use of carbon tax policy as a possible economic solution to climate change.

This audio will help students understand the relationship between economics and climate change. Additionally, they will learn about carbon pricing theory and its effectiveness. They will be exposed to initiatives such as the Portfolio Decarbonization Coalition and will learn about the dynamics between technology, economics and politics.

Use this tool to help your students find answers to:

What is Environmental Economics?

  1. How has economics played a role in creating the current climate change crisis?
  2. What is carbon pricing and how does it work?
  3. What is ‘dirty’ infrastructure and how does it impact climate change?
Tool Name Can Economics save Climate Change?
Discipline Economics
Topic(s) in Discipline Environmental Economics, Climate Change Economics, Carbon Pricing, Economics of Fossil Fuels
Climate Topic Energy, Economics, and Climate Change; Climate Mitigation and Adaptation
Type of Tool Audio (51 mins)
Grade Level Undergraduate
Location  Global
Language English
Translation
Developed by The Elephant (Cameron Hepburn, Oxford University)
Hosted at Player FM
Link Audio Link
Access Online
Computer Skills Basic

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: 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 Change Economics
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: 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: 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, Carbon Emissions
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: 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 

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, COVID-19 Pandemic and the Economy
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: 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, COVID-19 Pandemic and the Economy
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

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