Discount Rate
What does discount rate solve for?
How much something today will be worth tomorrow!! (the future)
Discount rate represents a tradeoff between what you want to spend today vs in the future
EPA
Environmental Protection Agency
NDC
nationally determined contributions
List the FOUR main hydrocarbons?
wood
coal
oil
natural gas
"year without summer"
1816, following the eruption of Mount Tambora in Indonesia in 1815
1
--------
(1+r)t
What is r in the discount rate formula?
A percent value which shows how willing you are to give up something, representing the relationship between how important and valuable it is today in comparison to the future.
WMO
World Meteorological Organization
COP
Conference of Parties:
The decision making body of UNFCCC
-led to 1997 Kyoto Protocol
Factors in estimating damage to poorer countries?
2. Rising Sea Levels/ Costal Flooding
3. Poor Household Income
"beta delta discounting" OR "quasi hyperbolic discounting"
importance of near-term climate action vs significance of long term adaptation
What makes r = 0 ?
If you value the past and present the same
SCC
Social Cost of Carbon
UNEP
United Nations Environment Program:
Formed after its first meeting in Stockholm, Sweden
1972
THREE Major things that raise CO2 ( on pg121)
-hydrocarbon sources
-burning of forest and peat lands
-conversion of rainforest to pasture/cropland
"no regrets"
EVEN IF worst case scenario actions happen, policies implemented against climate change now can still improve outcomes and public bads
What makes r negative?
If you value the future more than the present :3
IEA
International Energy Agency
IPCC
Intergovernmental Panel on Climate Change:
Founded by the WMO and UNEP
8 Countries most likely to suffer from climate damages:
South Sudan, Madagascar, Pakistan, Somalia, Sudan, Chad, Sahel, Dry Corridor of Central America (Honduras and Guatemala)
6 things that are uncertain as temperature rises?
decreased agricultural activity
increased mortality
added energy use
storm activity
drought
flooding
What makes a positive r ?
Anytime you discount the past the value will be negative !
IRENA
International Renewable Energy Agency
UNFCCC
United Nations Framework Convention on Climate Change:
A global climate treaty by the UN General Assembly in May 1992
6 places with SPECIAL vulnerability p.120
Haiti, Yemen, United Arab Emirates, Lagos, Nigeria, Philippines and Kiribati
"albedo effect"
Mt Pinatubo's 1991 eruption reflected sunlight back into space.
It's why we paint horizontal surfaces white- to REFLECT!!111111111111111!!!!!!!!!11