The Economics of Climate Change | Quizlet

Natural Climate Change

Climate change caused by natural forces and phenomena (i.e., sun, volcanic eruptions, etc.).

Man made climate change

Environmental changes caused by human activities.

The greenhouse effect

warming that results when solar radiation is trapped by the atmosphere

Enhanced Greenhouse Effect

Rising global temperatures due to greenhouse gases being put into the atmosphere because of human activities

Economic resources

Land, Labour, Capital, Entrepreneurship

Opportunity Cost

Cost of the next best alternative use of money, time, or resources when one choice is made rather than another

supply and demand

relationship between the amount of product and the desire for the product

Scarcity

Although we have boundless needs and wants, the resources available to us are limited. So having more of one thing usually means having less of another.

Incentives

Factors that motivate individuals to make decisions, they can be tangible (e.g. money) or intangible (e.g. extra holidays)

Resource Allocation

Assigning available resources, or factors of production, to specific uses chosen among many possible and competing alternatives. It involves answering "What to produce" and "How to produce".

Public Goods

Goods, such as clean air and clean water, that everyone must share.

Government Intervention

The practice of government to intervene in markets, often when markets fail to produce equitable or efficient outcomes

price cap

A government limit on prices that (in theory) makes markets fairer to consumers

subsidy

A government payment that supports a business, individuals or market

voucher

A right to spend a certain amount of money on a particular product to help meet government goals (e.g. solar panels to help with the environment).

regulation

Government rules or interventions in a market or society

Unintended consequences

Unexpected outcomes from an intervention in the market - these can be positive or negative

Equity

Ensuring that policies are fair to all citizens

Efficiency

Ensuring that policies work well and are cost effective

Negative Externalities

A cost imposed without compensation on third parties by the production or consumption of sellers or buyers. Example: a manufacturer dumps toxic chemicals into a river, killing the fish which people want to catch to eat

positive externality

a benefit received by someone who had nothing to do with the activity that generated the benefit

free rider problem

the problem faced by certain groups when people can reap the benefits of something they do without actually joining, participating in, or contributing money.

Tragedy of the commons

a story that illustrates why common resources are used more than is desirable from the standpoint of society as a whole

CSR

corporate social responsibility

Mission (Statement)

A statement of the organization's purpose - what it wants to accomplish in the larger environment

Values

Expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world

Objectives

Specific, measurable, short-term expectations that set out how a company will deliver on its values and mission

Brand

All the combined impressions and experiences associated with a particular company, good, or service

4 P's of Marketing / Marketing Mix

Product, Price, Place, Promotion