Q. Which of the following statements best describes the term ‘Social Cost of Carbon’?
a) It is a measure, in monetary value, of the long-term damage done by a tonne of CO2 emissions in a given year.
b) requirement of fossil fuels for a country to provide goods and services to its citizens, based on the burning of those fuels.
c) efforts put in by a climate refugee to adapt to live in a new place.
d) contribution of an individual person to the carbon footprint on the planet Earth.
Correct Answer : a) It is a measure, in monetary value, of the long-term damage done by a tonne of CO2 emissions in a given year.
Question from UPSC Prelims 2020 GS Paper
Explanation:
Social Cost of Carbon
Social Cost of Carbon (SCC) is a concept used by economists and policymakers to quantify and monetize the long-term economic damages associated with an incremental increase in carbon dioxide emissions in a given year. This includes a wide range of impacts, such as changes in net agricultural productivity, human health, property damages from increased flood risk, and changes in energy system costs, among others. The SCC is used to estimate the value of damages avoided for a small emission reduction (or conversely, the damages incurred by an additional ton of carbon emissions). It provides a way to evaluate the economic benefits of policies that reduce greenhouse gas emissions by comparing them to the policy costs. Therefore, it plays a crucial role in the development of climate policy and environmental regulation by helping to inform cost-benefit analyses of climate actions.
