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. ✓ UPSC's 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.
Why the answer is (a)
• The Social Cost of Carbon (SCC) is an estimate, in money terms, of the long-term economic damage caused by emitting one additional tonne of CO2 in a given year — lost agricultural output, health costs, property damage and so on — option (a).
• Governments use SCC in cost–benefit analysis of regulations; the US figure has ranged from about $51 to $190 per tonne.
• Option (b) describes energy dependence; (c) adaptation costs of climate migrants; (d) an individual's carbon footprint — none is the SCC.
• Hence option (a).
Why the other options are wrong
- (b) requirement of fossil fuels for a country to provide goods and services to its citizens…
- That describes fossil-fuel dependence, not SCC.
- (c) efforts put in by a climate refugee to adapt to live in a new place.
- That describes adaptation costs of migrants, not SCC.
- (d) contribution of an individual person to the carbon footprint on the planet Earth.
- That describes an individual carbon footprint, not SCC.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2020, held on 4 October 2020. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.