Jun 20, 2021 | Economic Concepts
Reasons for discounting There are two reasons, usually proposed by economists, for discounting the future [2]. The first reason is often referred to as inherent discounting, pure time preference or impatience and simply states that people generally prefer income...
Jun 18, 2021 | Economic Concepts
Over the years, technological innovations have made the use of resources more efficient. In the late 1700s, James Watt introduced the Watt steam engine, which used coal more efficiently than the earlier models, subsequently making coal more cost effective [1]....
Feb 20, 2021 | Economic Concepts
The green bond serves the role of an ordinary bond: a loan to finance a project with a promise of future reimbursement, plus interest, for the investor. The key difference is that green bonds fund exclusively sustainable projects. The first green bond was issued in...
Aug 14, 2020 | Economic Concepts
Link to Climate Change Climate change has been described as the ‘ultimate tragedy of the commons’ [3]. The Earth’s atmosphere is a common, shared resource [5]. Every country acts in its own rational self-interest, for example by emitting more than...
May 6, 2020 | Economic Concepts
Joint Implementation (JI) is the second of the Kyoto protocol’s reduction incentives. Like the CDM, it is a way of issuing tradable carbon allowances for Article I countries (countries with mandatory reduction targets) to trade, but unlike the CDM, it encourages...
May 6, 2020 | Economic Concepts, Key Terms and Agreements
The Clean Development Mechanism (CDM) works to reward developed countries who aid developing countries in their sustainable development. It does this by issuing sustainable development projects with Certified Emissions Reductions (CER), which can be bought as carbon...
