Topic Details (Notes format)

Climate Finance and Carbon Markets

Subject: Economics

Book: Comprehensive Indian Economy - Additional Topics

Tackling climate change requires financing green initiatives—renewable energy, sustainable agriculture, low-carbon transport. Instruments like green bonds, carbon credits, or emission trading systems create market-based mechanisms to reduce emissions. In India, policy questions revolve around integrating carbon pricing with industrial growth, ensuring environmental justice, and leveraging global climate funds. Exams often explore how carbon markets align with national commitments under the Paris Agreement and the synergy with domestic development strategies.

Practice Questions

What is “open market operations” (OMO)?

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What is the term for the ability of an economy to produce more output from the same inputs?

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What is the objective of the Goods and Services Tax (GST)?

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What is “fiscal stimulus”?

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Which economic concept is described as “the next best alternative foregone”?

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What is the meaning of “supply-side economics”?

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What does the term “capital account” refer to in the balance of payments?

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What is “currency devaluation”?

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Which of the following is an example of fiscal policy?

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Which of the following is a feature of monopolistic competition?

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