Econ Section IV

Climate Commons

The shared atmospheric environment of the globe.

Public Goods

When positive or negative externalities are experienced by groups larger than just a few individuals or firms.

Free Rider

A person, firm, or country that consumes a public good but pays less or none of the cost of its provision.

Principal/Agent Problem

The information and monitoring problems faced by a principal seeking to oversee many agents.

Discount Rate

Reflects the trade off someone makes by spending a dollar today versus saving the dollar to spend on something a year from now.

Social Cost of Carbon (SCC)

The cost, in dollars, of the damage done by each additional ton of carbon emissions.

Geoengineering

Unilateral intervention introducing particulate matter (SO2) into the atmosphere to stimulate volcanic eruption and cool the atmosphere.

Albedo Effect

The reflection of sunlight from light or white surfaces or particles.

Experimental Governance

Piecing together of efforts at different levels and scales already in existence, ending with broad interaction and oversight of the agreement.

International Renewable Energy Agency (IRENA)

Agency that found renewables were about 62% cheaper than the least expensive new fossil fuels.

Collective Action

Organization and coordination required to address shared challenges and issues.

Negative Externality

The direct, uncompensated, and often unintentional actions of others that result in negative consequences.

Positive Externality

Benefits experienced by parties not involved in an economic transaction or decision.

Nested Public Good

One public good or commons dilemma inside another, similar to Russian dolls.

Agricultural Productivity

The measure of the yield of agricultural products that can be produced and affected by rising temperatures.

Crisis of Climate Change

A situation where climatic conditions seriously impact economic, social, and environmental well-being.

Unilateral Intervention

A country's independent action to address global challenges like climate change without the agreement of other nations.

Montreal Protocol

An agreement to eliminate gases destroying atmospheric ozone.

U.N. Human Development Report

A report that highlighted the drop in prices for large-scale solar photovoltaic systems.

Inflation Reduction Act

An act to create incentives and tax credits for renewable energy systems in the U.S.

COP (Conference of Parties)

The decision-making body of the UNFCCC that meets annually to assess progress and negotiate climate goals.

Kyoto Protocol

An international treaty extending the 1992 UNFCCC that commits state parties to reduce greenhouse gas emissions.

Paris Agreement

An agreement within the UNFCCC to address climate change and its impacts, aiming for a temperature limit of 1.5°C.