Economic analysis of climate changeThe economic analysis of climate change explains how economic thinking, tools and techniques are applied to calculate the magnitude and distribution of damage caused by climate change. It also informs the policies and approaches for mitigation and adaptation to climate change from global to household scales. This topic is also inclusive of alternative economic approaches, including ecological economics and degrowth. Economic analysis of climate change is considered challenging as it is a long-term problem and has substantial distributional issues within and across countries.
Climate changeIn common usage, climate change describes global warming—the ongoing increase in global average temperature—and its effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes to Earth's climate. The current rise in global average temperature is more rapid than previous changes, and is primarily caused by humans burning fossil fuels. Fossil fuel use, deforestation, and some agricultural and industrial practices increase greenhouse gases, notably carbon dioxide and methane.
Politics of climate changeThe politics of climate change results from different perspectives on how to respond to climate change. Global warming is driven largely by the emissions of greenhouse gases due to human economic activity, especially the burning of fossil fuels, certain industries like cement and steel production, and land use for agriculture and forestry. Since the Industrial Revolution, fossil fuels have provided the main source of energy for economic and technological development.
Economic growthEconomic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year. Statisticians conventionally measure such growth as the percent rate of increase in the real and nominal gross domestic product (GDP). Growth is usually calculated in real terms – i.e., inflation-adjusted terms – to eliminate the distorting effect of inflation on the prices of goods produced. Measurement of economic growth uses national income accounting.
Climate change mitigationClimate change mitigation is action to limit climate change by reducing emissions of greenhouse gases or removing those gases from the atmosphere. The recent rise in global average temperature is mostly due to emissions from burning fossil fuels such as coal, oil, and natural gas. Mitigation can reduce emissions by transitioning to sustainable energy sources, conserving energy, and increasing efficiency. It is possible to remove carbon dioxide () from the atmosphere by enlarging forests, restoring wetlands and using other natural and technical processes.
Sustainable energyEnergy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs." Most definitions of sustainable energy include considerations of environmental aspects such as greenhouse gas emissions and social and economic aspects such as energy poverty. Renewable energy sources such as wind, hydroelectric power, solar, and geothermal energy are generally far more sustainable than fossil fuel sources.
MacroeconomicsMacroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole—for example, using interest rates, taxes, and government spending to regulate an economy's growth and stability. This includes regional, national, and global economies. Macroeconomists study topics such as GDP (Gross Domestic Product), unemployment (including unemployment rates), national income, price indices, output, consumption, inflation, saving, investment, energy, international trade, and international finance.
Climate change scenarioClimate change scenarios or socioeconomic scenarios are projections of future greenhouse gas (GHG) emissions used by analysts to assess future vulnerability to climate change. Scenarios and pathways are created by scientists to survey any long term routes and explore the effectiveness of mitigation and helps us understand what the future may hold this will allow us to envision the future of human environment system. Producing scenarios requires estimates of future population levels, economic activity, the structure of governance, social values, and patterns of technological change.
Phase-out of fossil fuel vehiclesVehicles that are powered by fossil fuels, such as gasoline (petrol), diesel, kerosene, and fuel oil are set to be phased out by a number of countries. It is one of the three most important parts of the general fossil fuel phase-out process, the others being the phase-out of fossil fuel power plants for electricity generation and decarbonisation of industry. Many countries and cities around the world have stated they will ban the sale of passenger vehicles (primarily cars and buses) powered by fossil fuels such as petrol, liquefied petroleum gas, and diesel at some time in the future.
Developing countryA developing country is a sovereign state with a less developed industrial base and a lower Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreement on which countries fit this category. The terms low and middle-income country (LMIC) and newly emerging economy (NEE) are often used interchangeably but refers only to the economy of the countries.
Renewable energyRenewable energy is energy from renewable resources that are naturally replenished on a human timescale. Renewable resources include sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy sources are sustainable, some are not. For example, some biomass sources are considered unsustainable at current rates of exploitation. Renewable energy is often used for electricity generation, heating and cooling.
Economic developmentIn the economics study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and objectives. The term has been used frequently in the 20th and 21st centuries, but the concept has existed in the West for far longer. "Modernization", "Westernization", and especially "industrialization" are other terms often used while discussing economic development.
Least developed countriesThe least developed countries (LDCs) are developing countries listed by the United Nations that exhibit the lowest indicators of socioeconomic development. The concept of LDCs originated in the late 1960s and the first group of LDCs was listed by the UN in its resolution 2768 (XXVI) on 18 November 1971. A country is classified among the Least Developed Countries if it meets three criteria: Poverty – adjustable criterion based on Gross national income (GNI) per capita averaged over three years.
Climate sensitivityClimate sensitivity is a measure of how much Earth's surface will cool or warm after a specified factor causes a change in its climate system, such as how much it will warm for a doubling in the atmospheric carbon dioxide () concentration. In technical terms, climate sensitivity is the average change in global mean surface temperature in response to a radiative forcing, which drives a difference between Earth's incoming and outgoing energy.
Emission intensityLife-cycle greenhouse gas emissions of energy sources An emission intensity (also carbon intensity or C.I.) is the emission rate of a given pollutant relative to the intensity of a specific activity, or an industrial production process; for example grams of carbon dioxide released per megajoule of energy produced, or the ratio of greenhouse gas emissions produced to gross domestic product (GDP).
Energy systemAn energy system is a system primarily designed to supply energy-services to end-users. The intent behind energy systems is to minimise energy losses to a negligible level, as well as to ensure the efficient use of energy. The IPCC Fifth Assessment Report defines an energy system as "all components related to the production, conversion, delivery, and use of energy". The first two definitions allow for demand-side measures, including daylighting, retrofitted building insulation, and passive solar building design, as well as socio-economic factors, such as aspects of energy demand management and remote work, while the third does not.
Low-carbon fuel standardA low-carbon fuel standard (LCFS) is an emissions trading rule designed to reduce the average carbon intensity of transportation fuels in a given jurisdiction, as compared to conventional petroleum fuels, such as gasoline and diesel. The most common methods for reducing transportation carbon emissions are supplying electricity to electric vehicles, supplying hydrogen fuel to fuel cell vehicles and blending biofuels, such as ethanol, biodiesel, renewable diesel, and renewable natural gas into fossil fuels.
Global North and Global SouthThe concept of Global North and Global South (or North–South divide in a global context) is used to describe a grouping of countries along the lines of socio-economic and political characteristics. The Global South is a term that broadly comprises countries in the regions of Africa, Latin America and the Caribbean, Asia (without Israel, Japan, and South Korea), and Oceania (without Australia and New Zealand), according to the United Nations Conference on Trade and Development (UNCTAD).
Economic policyThe economy of governments covers the systems for setting levels of taxation, government budgets, the money supply and interest rates as well as the labour market, national ownership, and many other areas of government interventions into the economy. Most factors of economic policy can be divided into either fiscal policy, which deals with government actions regarding taxation and spending, or monetary policy, which deals with central banking actions regarding the money supply and interest rates.
Energy intensityEnergy intensity is a measure of the energy inefficiency of an economy. It is calculated as units of energy per unit of GDP (Gross Domestic Product) or some other measure of economic output. High energy intensities indicate a high price or cost of converting energy into GDP. On the other hand, Low energy intensity indicates a lower price or cost of converting energy into GDP. The energy intensity of a country or region differs from its energy efficiency. Energy intensity is affected by climate, economic structure (e.
