Climate Changed
Select all the answers that apply. The following are basic steps for estimating the social cost of carbon using a typical IAM: Emissions Scenarios. Carbon Cycle. Climate Dynamics. Economic Impacts.
Emissions Scenarios. Carbon Cycle. Climate Dynamics. Economic Impacts.
A critique about IAMs is that it assumes that there is imperfect substitution between manufactured capital and natural capital. True False
FALSE
A well-known benefit of carbon emissions is reduced air quality.
FALSE
A well-known benefit of carbon emissions is the contraction of land for livestock.
FALSE
CBAs do not help to compare mitigation and adaptation programs. True False
FALSE
Climate change CBAs do not include the dynamics of technology because better technology will lower carbon emissions at a faster pace than what we assume today. True False
FALSE
Environmentalist oppose to mitigation programs. Their argument is that mitigation does not stop bad behaviors that are the source of the problem. True False
FALSE
Hypothetical biases refer to the idea that our hypothetical willingness to pay for things is lower than our actual willingness to pay.
FALSE
In a general climate change CBA, the benefits of producing carbon emissions are greater than the costs, therefore carbon emissions are not acceptable and won't continue.
FALSE
Integrated Assessment Models (IAMs) are not a crucial component of CBAs in the climate change debate. True False
FALSE
Some of the benefits of producing carbon emissions are more income and food per capita in the world. True False
FALSE
The social cost of carbon is measured as the welfare gain associated with the total tons of carbon dioxide emitted. True False
FALSE
_________ discount rates imply ____________ social cost of carbon which indicates that we care less about the impact of climate change on future generations. Lower; higher Lower; lower Higher; higher Higher; lower
Lower; higher
Select all the answers that apply. _____________ refers to how errors or uncertainty in one variable multiply when that variable becomes part of a function involving other variables that might involve a certain degree of uncertainty or error as well. IAMs include _______ of the parameters to solve this problem. Propagation of Error; probability distributions Uncertainty Explosions; discount rates Uncertainty Explosions; probability distributions Cascading Uncertainties; discount rates
Propagation of Error; probability distributions. Uncertainty Explosions; discount rates. Cascading Uncertainties; discount rates.
A program-specific CBA will estimate whether the costs of subsidizing electric cars exceed the benefits of this particular program. True False
TRUE
A thin-tail impact means that the damages of climate change due to very minor temperature changes are much smaller than they should be. This is called cascading bias which refers to high risk assessments that do not correspond to what data imply. True False
TRUE
CBA methodologies that are program-specific evaluate projects such as a carbon tax, investment in solar systems, or subsidizing electric cars. True False
TRUE
CBAs compare the benefits from carbon emissions and the costs that climate change creates.
TRUE
Climate change cost-benefit analyses require climate sensitivity parameters from climatology, like forcing functions of carbon dioxide. True False
TRUE
Cost-benefit analysis is usually used to estimate if an investment in the private and public sectors generates more benefits than costs during the lifetime of the investment. True False
TRUE
Estimates of the damage per ton of CO2 emitted vary by 2 orders of magnitude. The main input of the models that generates these variations is the discount rate which is a limitation of the IAM. True False
TRUE
In IAMS, the basic assumptions are that temperature does not cause extreme weather events and sea-level rise. True False
TRUE
The CBA argument that supports the transition to greener technologies is that the costs of producing carbon emissions exceed its benefits.
TRUE
The negative externalities imposed on others by the private use of carbon emissions is often called the Social Cost of Carbon. True False
TRUE
Select all the answers that apply. The last step of an IAM estimates _______________ based on the outcomes of the Climate Projections and Impacts. the carbon dioxide concentrations in the atmosphere the loss generated by climate change in money terms how future carbon dioxide concentrations will change global temperature and weather the damage function
The carbon dioxide concentration in the atmosphere. The loss generated by climate change in money terms The damage functions.
Select all the answers that apply. Integrated assessment models (IAMs) measure: economic damages associated with carbon dioxide (CO2)-induced climate change. the "social cost of carbon" (SCC). the negative externalities of carbon emissions. the benefits of carbon emissions.
economic damages associated with carbon dioxide (CO2)-induced climate change the "social cost of carbon" (SCC). the negative externalities of carbon emissions.
Select all the answers that apply. The inclusion of probability distributions in IAMs generate ____________. fat-tail impacts in the damage function. thin-tail impacts in the damage function. fat-tail impacts in the IPAT equation. thin-tail impacts in the IPAT equation.
fat-tail impacts in the damage function. thin-tail impacts in the damage function. fat-tail impacts in the IPAT equation. thin-tail impacts in the IPAT equation.
_________ discount rates imply ____________ social cost of carbon which indicates that we care more about the impact of climate change on future generations. Lower; higher Lower; lower higher; higher higher; lower
higher; higher
Mitigation programs will __________ energy prices which will __________ the wealth of future generations. CBAs must introduce this trade-off. increase; reduce decrease; reduce increase; increase decrease; increase
increase; reduce
Select all the answers that apply. A discount rate... is used to reduce the loss generated by climate change in money terms by the length of time that passes before these damages are felt. aggregates the impact of climate change over time in one value. disaggregates the damage function. is arbitrary in IAMs.
is used to reduce the loss generated by climate change in money terms by the length of time that passes before these damages are felt. aggregates the impact of climate change over time in one value. is arbitrary in IAMs.
In the Emissions Scenarios Step, _____________ predicts the impact of future carbon dioxide emissions based on the dynamics of population, wealth, technology and energy. the IPAT equation the damage function the carbon equation the climate sensitivity function
the IPAT equation
The problem with program-specific CBAs is that _________________________. the benefits are perceived in the long run but the costs are paid today, tomorrow and in the next 10 years. the costs are paid in the long run but the benefits are received today, tomorrow and in the next 10 years. the benefits are perceived in the long run and are paid today, tomorrow and in the next 10 years. the costs are paid in the long run and today, tomorrow and in the next 10 years.
the benefits are perceived in the long run but the costs are paid today, tomorrow and in the next 10 years.
Select all the answers that apply. The third step of an IAM estimates _______________ based on the net increase in carbon concentrations and an estimate of climate sensitivity. the carbon dioxide concentrations in the atmosphere the loss generated by climate change in money terms how future carbon dioxide concentrations will change global temperature and weather what impact changes in temperature and weather would have on society
the carbon dioxide concentrations in the atmosphere how future carbon dioxide concentrations will change global temperature and weather. what impact changes in temperature and weather would have on society.
Select all the answers that apply. The second step of an IAM estimates _______________ based on the predicted emission streams and what we know about the residence time of carbon dioxide in the atmosphere. the carbon dioxide concentrations in the atmosphere the loss generated by climate change in money terms how future carbon dioxide concentrations will change global temperature and weather the net increase of carbon in the atmosphere
the carbon dioxide concentrations in the atmosphere. the net increase of carbon in the atmosphere.
