Social cost of carbonThe social cost of carbon (SCC) is the marginal cost of the impacts caused by emitting one extra tonne of carbon emissions at any point in time. The purpose of putting a price on a ton of emitted is to aid people in evaluating whether adjustments to curb climate change are justified. The social cost of carbon is a calculation focused on taking corrective measures on climate change which can be deemed a form of market failure. The Intergovernmental Panel on Climate Change suggested that a carbon price of $100/tCO2 could reduce global GHG emissions by at least half the 2019 level by 2030.
Climate targetA climate target, climate goal or climate pledge is a measurable long-term commitment for climate policy and energy policy with the aim of limiting the climate change. Researchers within, among others, the UN climate panel have identified probable consequences of global warming for people and nature at different levels of warming. Based on this, politicians in a large number of countries have agreed on temperature targets for warming, which is the basis for scientifically calculated carbon budgets and ways to achieve these targets.
Welfare stateA welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equitable distribution of wealth, and public responsibility for citizens unable to avail themselves of the minimal provisions for a good life. There is substantial variability in the form and trajectory of the welfare state across countries and regions.
Deadweight lossIn economics, deadweight loss is the difference in production and consumption of any given product or service including government tax. The presence of deadweight loss is most commonly identified when the quantity produced relative to the amount consumed differs in regards to the optimal concentration of surplus. This difference in the amount reflects the quantity that is not being utilized or consumed and thus resulting in a loss.
Earth's energy budgetEarth's energy budget accounts for the balance between the energy that Earth receives from the Sun and the energy the Earth loses back into outer space. Smaller energy sources, such as Earth's internal heat, are taken into consideration, but make a tiny contribution compared to solar energy. The energy budget also accounts for how energy moves through the climate system. Because the Sun heats the equatorial tropics more than the polar regions, received solar irradiance is unevenly distributed.
ExternalityIn economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either consumer or producer market transactions. Air pollution from motor vehicles is one example. The cost of air pollution to society is not paid by either the producers or users of motorized transport to the rest of society. Water pollution from mills and factories is another example.
Carbon accountingCarbon accounting (or greenhouse gas accounting) is a framework of methods to measure and track how much greenhouse gas (GHG) an organization emits. It can also be used to track projects or actions to reduce emissions in sectors such as forestry or renewable energy. Corporations, cities and other groups use these techniques to help limit climate change. Organizations will often set an emissions baseline, create targets for reducing emissions, and track progress towards them.
Environmental economicsEnvironmental economics is a sub-field of economics concerned with environmental issues. It has become a widely studied subject due to growing environmental concerns in the twenty-first century. Environmental economics "undertakes theoretical or empirical studies of the economic effects of national or local environmental policies around the world. ... Particular issues include the costs and benefits of alternative environmental policies to deal with air pollution, water quality, toxic substances, solid waste, and global warming.
Equity (economics)Equity, or economic equality, is the concept or idea of fairness in economics, particularly in regard to taxation or welfare economics. More specifically, it may refer to a movement that strives to provide equal life chances regardless of identity, to provide all citizens with a basic and equal minimum of income, goods, and services or to increase funds and commitment for redistribution. According to Peter Corning, there are three distinct categories of substantive fairness (equality, equity, and reciprocity) that must be combined and balanced in order to achieve a truly fair society.
Chicken (game)The game of chicken, also known as the hawk–dove game or snowdrift game, is a model of conflict for two players in game theory. The principle of the game is that while the ideal outcome is for one player to yield (to avoid the worst outcome if neither yields), the individuals try to avoid it out of pride for not wanting to look like a "chicken". Each player taunts the other to increase the risk of shame in yielding. However, when one player yields, the conflict is avoided, and the game is for the most part over.
