Climate change is driven primarily by the emission of greenhouse gases (like CO2) from human activities. The costs associated with the impacts of climate change (such as sea-level rise, extreme weather events, etc.) are not borne by the emitters alone but by the entire global community, making it an externality. Since these impacts are largely harmful, it is a negative externality. Its effects are global in scope, affecting all regions.
Climate change is
Asked in UPSC SO Steno 2017 · Topic: Greenhouse Effect and Climate Change (Anthropogenic (Human-induced) Enhanced Greenhouse Effect)
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Answer: C. a global negative externality caused by Green House Gas emissions
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