Grade Level: Undergraduate
Discipline: Economics
Topics: Environmental Economics, Carbon Pricing, Carbon Tax; Emissions Trading System (ETS), Cost-Benefit Analysis; Shadow Price, Market Price, Social Cost, Marginal Abatement Cost; Discount Rate, Stabilization Goals, Internal Carbon Pricing, Externalities
Climate Topic: Energy, Economics and Climate Change;Policies, Politics and Environmental Governance; Climate Mitigation and Adaptation
Location: Global
Languages: English
Duration: 90-100 min

Learning Outcomes

The tools in this lesson plan will enable students to:

  • explain the concept and importance of pricing carbon
  • evaluate carbon pricing as an instrument for climate policy packaging
  • describe shadow prices in environmental economics
  • distinguish between shadow price, social cost and market price
  • define discount rate, marginal abatement costs and statistical value of life
Lesson Plan contributed by Megha Jacob, Jesus and Mary College (Delhi University), India