Climate change exam 2

Country-Specific Social Cost of Carbon (CSCC)

Quantifies the economic damages from an additional ton of carbon dioxide emitted within a specific country, accounting for local conditions.

Lorenz Curve

A graphical representation of income or wealth distribution that plots cumulative income percentages against cumulative population percentages, illustrating inequality.

Gini Coefficient

A statistical measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality), derived from the Lorenz Curve.

Social Vulnerability

The degree to which a community is susceptible to harm from external stressors, based on factors like socioeconomic status and access to resources.

Net Zero

Achieving a balance between greenhouse gas emissions produced and removed from the atmosphere, often through emission reductions and offset measures.

Command and Control Regulation

Direct government mandates that specify how firms must operate, such as setting limits on emissions.

Performance Standard

Specific limits on emissions or resource use that firms must meet, focusing on outcomes rather than compliance methods.

Technology Standard

Mandates the use of specific technologies to achieve compliance with environmental regulations, aiming to promote certain solutions.

Pigouvian Tax

A tax levied on activities that generate negative externalities to internalize social costs, often used to discourage pollution.

Cap and Trade Regulation

A market-based approach to pollution control where firms can buy and sell emission permits within a set cap.

Double Dividend

The concept that implementing an environmental tax can reduce environmental damage and increase economic efficiency.

Triple Dividend

Extends the double dividend concept by also including health and well-being improvements from reduced pollution.

Carbon Fee & Dividend

A policy charging a fee for carbon emissions, with revenue distributed as dividends to citizens.

Border Tax Adjustment

Tariffs on imported goods based on carbon emissions to protect domestic industries affected by carbon pricing.

Regressive Taxation

A tax system where lower-income individuals pay a higher percentage of income in taxes than wealthier individuals.

Vertical Equity

The principle that those with a greater ability to pay should contribute more to taxation.

Horizontal Equity

The principle that individuals with similar abilities to pay should owe similar amounts in taxes.

Carbon Credit

A permit allowing the holder to emit a certain amount of greenhouse gases, typically one credit equals one ton of CO2.

Carbon Offset

A reduction in greenhouse gas emissions used to compensate for emissions produced elsewhere.

Derived Demand

Demand for a good or service that arises from the value it provides in producing another good or service.

Additionality

A principle ensuring emissions reductions from a carbon offset project would not have occurred without it.

Adaptation

Adjusting practices or structures to minimize damage caused by climate change impacts.

Maladaptation

Actions responding to climate change that inadvertently increase vulnerability or cause negative consequences.

Cost-Benefit Analysis

Evaluates the economic pros and cons of a project by comparing expected costs against expected benefits.

Green Infrastructure

Natural or semi-natural systems that provide environmental benefits, such as stormwater management and biodiversity support.

Common Resource

A non-excludable but rivalrous resource, accessible to all yet depletable, like fisheries or groundwater.

Total Economic Value (TEV) of Water

Includes all benefits from water, including direct, indirect uses, and non-use values.

Use Value

Value derived from the direct use of a resource, such as through drinking water or recreational activities.

Option Value

Value placed on the potential future use of a resource, preserving it for possible future benefits.

Non-Use Value

Value assigned to resources not intended for direct use, like species preservation for future generations.

Economies of Scale

The reduction in cost per unit of production as production volume increases, often from improved efficiency.

Climate Migration

Movement of individuals or communities due to climate change impacts like extreme weather or resource scarcity.

Property Buyout

Purchasing land in high-risk areas to reduce vulnerability and support community relocation due to climate threats.