Which one of the following statements best describes the term 'Social Cost of Carbon'? It is a measure, in monetary value, of the
A
long-term damage done by a tonne of CO2 emissions in a given year.
Correct Answer
B
requirement of fossil fuels for a country to provide goods and services to its citizens, based on the burning of those fuels.
C
efforts put in by a climate refugee to adapt to live in a new place.
D
contribution of an individual person to the carbon footprint on the planet Earth.
Explanation
Option (a) is correct because the Social Cost of Carbon (SCC) is a monetary estimate of the long-term economic damage caused by emitting one additional ton of carbon dioxide in a specific year. Option (d) is a common distractor as it describes an individual's "carbon footprint," which measures the quantity of emissions rather than the economic cost of their impact. The core concept tested is the economic valuation of environmental externalities to help policymakers weigh the costs and benefits of climate mitigation.
Climate Change EconomicsCarbon PricingSocial Cost of CarbonCO2 emissionsMonetary valueClimate change mitigationCarbon footprint