CRIT A I&S ECONOMICS OF CLIMATE CHANGE

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.

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.

Public Goods

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

Private Goods

Goods that are rival (one person's use reduces it for others) and excludable (you can stop non-payers from using it).

Government Intervention

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

Price Cap

A maximum price set by the government — sellers cannot legally charge more than this amount.

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.

Regulation

Rules or laws set by the government that businesses and individuals must follow.

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

Getting the maximum output from available resources — achieving a goal at the lowest possible cost.

Negative Externalities

A cost imposed without compensation on third parties by the production or consumption of sellers or buyers.

Positive Externalities

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, 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.

Ethical Objectives

Business goals based on moral principles of right and wrong, rather than just focusing on profit.