Homework Answers
Option 3
Explanation: Climate change damages would happen over a period of time in the future.
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QUESTION 44 Why is the choice of the social discount rate important for estimates of damage...
8. The discount rate plays an important role in problems involving long time horizons such as...
8. The discount rate plays an important role in problems involving long time horizons such as climate change. Suppose that a particular strategy for reducing emissions of greenhouse gases that cause climate change would result in a S500 billion reduction in damages 50 years into the future. a. Assuming a discount rate of 10 percent, calculate the maximum amount that should be spent now to eliminate those damages? b. How would the maximum amount spent now to eliminate those damages...
QUESTION 4 What does the Social Cost of Carbon include? o Only damages from climate change...
QUESTION 4 What does the Social Cost of Carbon include? o Only damages from climate change each year Only damages from climate change every year O Future damages net of abatement O Future damages plus abatement cost
Question Completion Status: QUESTION 31 Why is abatement so important? Because it can offset damages Because...
Question Completion Status: QUESTION 31 Why is abatement so important? Because it can offset damages Because requires us to give up resources in the present Because it reduces the need to adapt All of the above QUESTION 32 Why do individual people discount the future? they think the future will be worse they think the future is worth more than the present they are impatient the present is uncertain QUESTION 33 What do inwestors discount the future? they think investments...
QUESTION 34 What is abatement? Getting used to climate change Reducing damages by mitigation Not emitting...
QUESTION 34 What is abatement? Getting used to climate change Reducing damages by mitigation Not emitting carbon Cleaning up damages from emissions QUESTION 35 Which of the following is not an economic metric for estimating climate change damages? Social damage as a function of GDP social cost of carbon O optimal temperature conditional on abatement and damage total stock of carbon emissions QUESTION 36 Is the social discount rate a constant value? Yes, it is always positive No, it can...
QUESTION 20 With a lower value for the discount rate, that means the incentive to address...
QUESTION 20 With a lower value for the discount rate, that means the incentive to address climate change problems will: O Rise -- the future is worth more Fall â the future is worth less and climate change is in the future Stay the same O Rise - the future is worth less
QUESTION 23 2 points Save Answer What economic metrics do economists use to measure climate change?...
QUESTION 23 2 points Save Answer What economic metrics do economists use to measure climate change? O Social Cost of Carbon O Present Value damages from climate change as a percent of GDP O Net losses in GDP from damages minus abatement O All of the above QUESTION 24 2 points 2 points Save Answer Save Answer The social discount rate is not the same as the market interest rate. Why? O capital markets adjust to all risks O market...
QUESTION 4 What does the Social Cost of Carbon include? Only damages from climate change each...
QUESTION 4 What does the Social Cost of Carbon include? Only damages from climate change each year Only damages from climate change every year Future damages net of abatement Future damages plus abatement cost QUESTION 5 What does the Marginal Abatement Cost function show? How much it costs to abate an extra unit of carbon How much it costs to increase temperatures How much it costs to abate ll carbon emissions How much it costs to reduce climate change damages...
QUESTION 24 The social discount rate is not the same as the market interest rate. Why?...
QUESTION 24 The social discount rate is not the same as the market interest rate. Why? O capital markets adjust to all risks o market interest rates reflect the demand for all investments O capital markets are not perfect capital markets are uncertain
Question Completion Status: QUESTION 10 What is the elasticity of the marginal utility of consumption? OA...
Question Completion Status: QUESTION 10 What is the elasticity of the marginal utility of consumption? OA measure of future uncertainty A measure of how much richer people value extra consumption A measure of the social discount rate A measure of present value consumption QUESTION 11 Why might gamma discounting make sense? People do not discount at constant rates People do discount at constant rates People do not like the future as much as the present People like the future more...
Completion Status QUESTION 19 What is the pure rate of time preference? The value placed on...
Completion Status QUESTION 19 What is the pure rate of time preference? The value placed on consumption The social discount rate The value placed on each generation The discounted value of economic growth QUESTION 20 With a lower value for the discount rate, that means the incentive to address climate change problems will: Rise- the future is worth more Fall à the future is worth less and climate change is in the future Stay the same Rise - the future...
8. The discount rate plays an important role in problems involving long time horizons such as climate change. Suppose that a particular strategy for reducing emissions of greenhouse gases that cause climate change would result in a S500 billion reduction in damages 50 years into the future. a. Assuming a discount rate of 10 percent, calculate the maximum amount that should be spent now to eliminate those damages? b. How would the maximum amount spent now to eliminate those damages...
QUESTION 4 What does the Social Cost of Carbon include? o Only damages from climate change each year Only damages from climate change every year O Future damages net of abatement O Future damages plus abatement cost
Question Completion Status: QUESTION 31 Why is abatement so important? Because it can offset damages Because requires us to give up resources in the present Because it reduces the need to adapt All of the above QUESTION 32 Why do individual people discount the future? they think the future will be worse they think the future is worth more than the present they are impatient the present is uncertain QUESTION 33 What do inwestors discount the future? they think investments...
QUESTION 34 What is abatement? Getting used to climate change Reducing damages by mitigation Not emitting carbon Cleaning up damages from emissions QUESTION 35 Which of the following is not an economic metric for estimating climate change damages? Social damage as a function of GDP social cost of carbon O optimal temperature conditional on abatement and damage total stock of carbon emissions QUESTION 36 Is the social discount rate a constant value? Yes, it is always positive No, it can...
QUESTION 20 With a lower value for the discount rate, that means the incentive to address climate change problems will: O Rise -- the future is worth more Fall â the future is worth less and climate change is in the future Stay the same O Rise - the future is worth less
QUESTION 23 2 points Save Answer What economic metrics do economists use to measure climate change? O Social Cost of Carbon O Present Value damages from climate change as a percent of GDP O Net losses in GDP from damages minus abatement O All of the above QUESTION 24 2 points 2 points Save Answer Save Answer The social discount rate is not the same as the market interest rate. Why? O capital markets adjust to all risks O market...
QUESTION 4 What does the Social Cost of Carbon include? Only damages from climate change each year Only damages from climate change every year Future damages net of abatement Future damages plus abatement cost QUESTION 5 What does the Marginal Abatement Cost function show? How much it costs to abate an extra unit of carbon How much it costs to increase temperatures How much it costs to abate ll carbon emissions How much it costs to reduce climate change damages...
QUESTION 24 The social discount rate is not the same as the market interest rate. Why? O capital markets adjust to all risks o market interest rates reflect the demand for all investments O capital markets are not perfect capital markets are uncertain
Question Completion Status: QUESTION 10 What is the elasticity of the marginal utility of consumption? OA measure of future uncertainty A measure of how much richer people value extra consumption A measure of the social discount rate A measure of present value consumption QUESTION 11 Why might gamma discounting make sense? People do not discount at constant rates People do discount at constant rates People do not like the future as much as the present People like the future more...
Completion Status QUESTION 19 What is the pure rate of time preference? The value placed on consumption The social discount rate The value placed on each generation The discounted value of economic growth QUESTION 20 With a lower value for the discount rate, that means the incentive to address climate change problems will: Rise- the future is worth more Fall à the future is worth less and climate change is in the future Stay the same Rise - the future...
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