Climate Change Economics — Prelims Questions

Which of the following statements regarding the Social Cost of Carbon (SCC) is/are correct? 1. SCC represents the economic damages from emitting one additional tonne of CO2. 2. The choice of discount rate significantly impacts the calculated SCC. 3. Integrated Assessment Models (IAMs) are commonly used for SCC computation. 4. SCC is a fixed, universally agreed-upon value across all economic models.

Consider the following statements regarding carbon pricing mechanisms in India: 1. India currently has a nationwide explicit carbon tax on all industrial emissions. 2. The Perform, Achieve and Trade (PAT) scheme is an example of a cap-and-trade mechanism for energy efficiency. 3. Carbon offsets allow entities to compensate for their emissions by funding emission reduction projects elsewhere.

Which of the following is NOT a primary characteristic of a market failure leading to environmental degradation?

With reference to Green Bonds in India, consider the following statements: 1. They are debt instruments issued to finance projects with environmental benefits. 2. The Reserve Bank of India (RBI) is the sole issuer of all green bonds in India. 3. Sovereign Green Bonds have been issued by the Government of India to fund public sector green projects.

Which of the following best describes the 'Green Paradox' in climate change economics?