UPSC Prelims 2020 Q85: Environment & Ecology – Climate Change & Greenhouse Gases
- (a) 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
- (c) efforts made by Climate refugees to adapt to live in a new place
- (d) contribution of an individual person to the carbon footprint on the planet Earth
Answer: (a) long - term damage done by a tonne of CO₂ emissions in a given year
Explanation
Social Cost of Carbon: Definition
| Definition | Matches Social Cost of Carbon? |
|---|---|
| Long-term monetary damage from 1 tonne CO2 | YES |
| Fossil fuel requirement to provide goods/services | NO - that's carbon intensity |
| Climate refugee adaptation efforts | NO - that's migration cost |
| Individual person's carbon footprint | NO - that's personal emissions |
Social Cost of Carbon (SCC): Monetized value of climate damages from 1 tonne CO2 emissions over time. Includes: agricultural loss, health impacts (heat, disease), infrastructure damage, ecosystem services loss.
Global estimate: $51-185/tonne (2020 USD). Used for carbon pricing, climate policy cost-benefit analysis.
Answer: (a) long-term damage done by a tonne of CO2 emissions in a given year.
Why each option is right or wrong
- (a) CORRECT. SCC is the monetized long-term climate damage from one tonne of CO2 emissions.
- (b) Incorrect. That's carbon intensity of economy.
- (c) Incorrect. That's climate migration cost.
- (d) Incorrect. That's personal carbon footprint measure.
Key point
SCC application: Carbon taxes (price = SCC), cost-benefit analysis of climate policies, damage assessment. Higher SCC justifies stronger climate action.
Remember
The term 'Social Cost of Carbon' describes a measure, in monetary value, of the LONG-TERM DAMAGE DONE BY A TONNE OF CO2 EMISSIONS IN A GIVEN YEAR - including climate impacts on agriculture, health, infrastructure and ecosystem services over time.
Common mistakes
- Confusing SCC (damage cost) with carbon intensity (energy per unit GDP).
- Underestimating SCC magnitude - even low estimates ($50/tonne) suggest large total cost (global emissions ~37Gt CO2/year = $1.85 trillion/year damage).
- Missing that SCC is disputed (discount rate, time horizon, risk determine value).
Exam tip
Carbon pricing models: Carbon tax (direct SCC-based) vs cap-and-trade (market price approximates SCC). EU ETS price ~EUR 50-80/tonne; Nordics charge $100+/tonne.
Sources
- IPCC - Social Cost of Carbon Assessment
- US EPA - Carbon Costs Estimates