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In the context of the environment, ‘Carbon Pricing’ is best described as
  • a)
    increase in the emission outside a regionas a direct result of the policy measuresto cap emissions in the region.
  • b)
    the practice of estimating theenvironmental cost of organic entities interms of the amount of carbon present inthem.
  • c)
    tax evasion mechanisms used byemitters to avoid paying taxes forgreenhouse gas emissions.
  • d)
    shifting of burden for damage fromGHG emissions by assigning theexternal costs to the emissions emittedby any entity.
Correct answer is option 'D'. Can you explain this answer?
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In the context of the environment, ‘Carbon Pricing’ is bes...
"environment" refers to the natural world and the conditions in which living organisms exist. It includes the air, water, land, and all the living and non-living things that surround us. The environment plays a crucial role in sustaining life and providing resources for all living beings. It also encompasses the interactions between organisms and their surroundings, including ecosystems and the ecological processes that occur within them. Protecting and preserving the environment is important for the well-being of both humans and the planet as a whole.
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In the context of the environment, ‘Carbon Pricing’ is bes...
  • Carbon Pricing is an instrument that captures the external costs of greenhouse gas (GHG) emissions - the costs of emissions that the public pays for, such as damage to crops, health care costs from heatwaves and droughts, and loss of property from flooding and sea-level rise - and ties them to their sources through a price, usually in the form of a price on the carbon dioxide (CO2) emitted.
  • A price on carbon helps shift the burden for the damage from GHG emissions back to those who are responsible for it and who can avoid it. Instead of dictating who should reduce emissions where and how, a carbon price provides an economic signal to emitters, and allows them to decide to either transform their activities and lower their emissions or continue emitting and paying for their emissions. Hence option (d) is the correct answer.
Other concepts:
  • Carbon leakage refers to the situation that may occur if, for reasons of costs related to climate policies, businesses were to transfer production to other countries with laxer emission constraints. This could lead to an increase in their total emissions
  • Carbon Tax - A carbon tax is a fee imposed on businesses and individuals that works as a sort of "pollution tax." The tax is a fee imposed on companies that burn carbon-based fuels, including coal, oil, gasoline, and natural gas.
  • Carbon Trading is the buying and selling of credits that permit a company or other entity to emit a certain amount of carbon dioxide. Carbon trade agreements allow for the sale of credits to emit carbon dioxide between nations as part of an international agreement aimed at gradually reducing total emissions.
  • Carbon trading began under the Kyoto Protocol of 1997 (which came into force in 2005). Under this, ‘certified emission reductions’ or CERs, were issued to entities that put up projects that reduced emissions — such as wind, solar, or energy efficiency.
  • It allows nations which are unable to meet their reduction targets to purchase carbon credits. Paris Agreement also allows voluntary trading between countries to meet their NDC goals. If a country reduces more GHG emissions than its target, it can sell the emission reduction to another country as an “internationally traded mitigation outcome”.
  • Zero Carbon Law by New Zealand - The Zero Carbon Act puts in place targets to reduce all greenhouse gases: Carbon dioxide and nitrous oxide have to reduce to net zero by 2050.
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In the context of the environment, ‘Carbon Pricing’ is best described asa)increase in the emission outside a regionas a direct result of the policy measuresto cap emissions in the region.b)the practice of estimating theenvironmental cost of organic entities interms of the amount of carbon present inthem.c)tax evasion mechanisms used byemitters to avoid paying taxes forgreenhouse gas emissions.d)shifting of burden for damage fromGHG emissions by assigning theexternal costs to the emissions emittedby any entity.Correct answer is option 'D'. Can you explain this answer?
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In the context of the environment, ‘Carbon Pricing’ is best described asa)increase in the emission outside a regionas a direct result of the policy measuresto cap emissions in the region.b)the practice of estimating theenvironmental cost of organic entities interms of the amount of carbon present inthem.c)tax evasion mechanisms used byemitters to avoid paying taxes forgreenhouse gas emissions.d)shifting of burden for damage fromGHG emissions by assigning theexternal costs to the emissions emittedby any entity.Correct answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about In the context of the environment, ‘Carbon Pricing’ is best described asa)increase in the emission outside a regionas a direct result of the policy measuresto cap emissions in the region.b)the practice of estimating theenvironmental cost of organic entities interms of the amount of carbon present inthem.c)tax evasion mechanisms used byemitters to avoid paying taxes forgreenhouse gas emissions.d)shifting of burden for damage fromGHG emissions by assigning theexternal costs to the emissions emittedby any entity.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the context of the environment, ‘Carbon Pricing’ is best described asa)increase in the emission outside a regionas a direct result of the policy measuresto cap emissions in the region.b)the practice of estimating theenvironmental cost of organic entities interms of the amount of carbon present inthem.c)tax evasion mechanisms used byemitters to avoid paying taxes forgreenhouse gas emissions.d)shifting of burden for damage fromGHG emissions by assigning theexternal costs to the emissions emittedby any entity.Correct answer is option 'D'. Can you explain this answer?.
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