Questions and Assignments

Use the tools and the concepts learned so far to discuss and determine answers to the following questions:

1. Carbon pricing is used as an instrument for making climate policies. Explain.
2. What is the difference between market prices and shadow prices?
3. What is the importance of shadow pricing in evaluating the costs of greenhouse gases?
4. In the context of climate change, what are discount rates, marginal abatement costs and statistical value of life?