Deck 9: The Economics of Climate Change

Question 1

Climate is a short-term phenomenon.

Answer 1

False

Question 2

With the exception of the recent past, historically, the effects of human-induced factors
on climate have been limited mainly to local or regional geographic region.

Answer 2

True

Question 3

As evidence of cyclical climate changes, one can refer to a cooling period, historically
known as 'The Little Ice Age' that occurred between 1550 and 1850.

Answer 3

True

Question 4

GHGs are composed of carbon dioxide (CO2), carbon monoxide (CO), Methane (CH4),
Nitric Oxide (N2O), Oxygen (O2), and a class of synthetic compounds known as
chlorofluorocarbons (CFCs).

Question 5

Ice records of atmospheric CO2 concentration show that the pre-Industrial Revolution
level of CO2 concentration was relatively stable going back to 10,000 years at about 280
ppm.

Question 6

The IPCC estimates with 68% probability that the cause for global warming is the
emission of heat trapping GHGs arising primarily from human activities.

Question 7

Climate models have been found to reproduce only the general features of the
global-scale annual mean surface temperature increases, but not the temperature
coolings.

Question 8

One can apply a standard cost-benefit analysis to climate change.

Question 9

A special feature of the externalities associated with climate change is that they are global
rather than localized in scope.

Question 10

The GHG damage cost function, which represents the relationship between expected
future warming and projected future damages to the economy, is discontinuous and
therefore exhibits a climate tipping point.

Question 11

The DICE model does not incorporate neoclassical economics growth theory because the
theory does not apply to climate change.

Question 12

The 2016 DICE model estimates a loss of 2.1 percent in global GDP with a 3^o C
warming by 2100.

Question 13

The stated goal of the Paris Climate Agreement, a temperature target of 2^o C or
less, will result in abatement costs that will be greater than the damage cost at the
margin.

Question 14

It is unfortunate that market-based climate policy instruments, such as emission
trading to limit GHG emissions, were never part of the Kyoto Protocol.

Question 15

Signatories to the Paris climate agreement are asked to make self-determined
emissions pledges.

Question 16

Which country signed the Kyoto Protocol, but did not ratify this agreement?

A) Canada.
B) China.
C) France.
D) United States.
E) Japan.

Question 17

What percentage of tropospheric air is composed of carbon dioxide?

A) 21 %.
B) 78 %.
C) 75%.
D) <1 %.
E) 10%.

Question 18

Which of the following constitutes a positive feedback loop for global warming?

A) Greenhouse gases (ghgs) trap or block infrared radiation from the earth, which warms the
Planet, so that more water vapor accumulates in the atmosphere.
B) Ghgs trap heat from the sun and re-direct it towards the earth.
C) Ghgs trap heat from the earth, warm up the planet, which then results in an increase of
Carbon dioxide in the atmosphere.
D) All of these constitute a feedback loop for global warming.
E) None of these constitute a feedback loop for global warming.

Question 19

Which argument has been used by developing countries to limit their greenhouse gas emissions?

A) It is bad for trade.
B) GHG emission are already low that developing countries cannot lower them any further.
C) Abatement technologies are not available to developing countries.
D) Developed countries refuse to help developing countries.
E) If the developing country limits their emissions, then they may limit their economic
growth.

Question 20

What is the main purpose of the Kyoto Protocol?

A) To stabilize greenhouse gas buildup in the atmosphere.
B) To address the shortcomings of the Paris Agreement.
C) To create a market mechanism for pollution credits.
D) To help develop alternatives to fossil fuels.
E) To phase out the use of fossil fuels.

Question 21

The Kyoto climate policy initiatives did not include which of the following?

A) Science based climate policy.
B) A strategy to use emission trading to limit GHG emissions.
C) Climate policy with considerations of principles of fairness.
D) Climate policy with considerations of principles of equity.
E) Climate policy with considerations of principles of religious belief.

Question 22

What are the potential costs of climate change?

A) Morbidity and deaths from extreme temperatures (heat and cold).
B) Loss of agricultural output due to drought.
C) Loss of real estate due to rising sea levels.
D) Loss of biodiversity.
E) All answers above are correct.

Question 23

In a theoretical construct of the GHG damage cost function that shows the relationship between expected future warming and projected future damages to the economy, one can conclude which of the following?

A) Global GDP increases with increases in temperature.
B) The damage function is affected by the past level of technologies.
C) The damage function is affected only by points of discontinuity.
D) Points of discontinuity in any damage function would represent catastrophic changes.
E) All of the above are correct.

Question 24

The Intergovernmental Panel on Climate Change (IPCC) has determined that…

A) Only carbon dioxide and methane contribute to the greenhouse effect.
B) Ozone layer is nearly depleted.
C) The Kyoto protocol successfully slowed GHG emissions.
D) Human activities have contributed to global temperature increases.
E) Global temperatures have risen about 12 degrees Fahrenheit.

Question 25

According to some climate scientists, climate tipping point may be reached when the increase in the average global surface temperature approaches …

A) Between 1 and 2 degree Celsius.
B) Between 2 and 4 degree Celsius.
C) Between 4 and 6 degree Celsius.
D) Between 10 and 15 degree Celsius.
E) Between 16 and 18 degree Celsius.