Which one of the following statements best describes the term 'Social Cost of Carbon'? It is a measure, in monetary value, of the

long-term damage done by a tonne of CO2 emissions in a given year.

requirement of fossil fuels for a country to provide goods and services to its citizens, based on the burning of those fuels.

efforts put in by a climate refugee to adapt to live in a new place.

contribution of an individual person to the carbon footprint on the planet Earth.

APEDIA

UPSC Prelims

2020 • 04 Oct, 2020 • Paper-1

Which one of the following statements best describes the term 'Social Cost of Carbon'? It is a measure, in monetary value, of the

Correct Answer

long-term damage done by a tonne of CO2 emissions in a given year.

Economic Conceptualization: In environmental economics, policymakers require a quantifiable metric to weigh the benefits of climate regulations against their im......

💡 Analysis & Explanation

Economic Conceptualization ▼

In environmental economics, policymakers require a quantifiable metric to weigh the benefits of climate regulations against their immediate economic costs.

Specific Definition ▼

The 'Social Cost of Carbon' (SCC) is precisely defined as an estimate of the monetized, long-term economic damages (such as healthcare costs, lost agricultural yields, and property destruction from flooding) caused by adding one single extra metric tonne of carbon dioxide to the global atmosphere in a specific year.

Dismissing Distractors ▼

It is not a measurement of personal footprints, fossil fuel requirements, or refugee adaptation costs. It is strictly a macroeconomic pricing tool used to calculate the financial toll of unchecked emissions.

Conclusion ▼

The definition provided in the first option perfectly encapsulates the standard economic meaning of the term.

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Which one of the following statements best describes the term 'Social Cost of Carbon'? It is a measure, in monetary value, of the