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 the main feature of a free-market economy?

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Which organization is responsible for estimating India’s Gross Domestic Product (GDP)?

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What is the concept of “invisible hand” associated with?

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Which of the following is considered a public good?

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What is the main purpose of monetary policy?

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What is meant by “stagflation”?

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What is the main function of the Reserve Bank of India (RBI)?

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Which of the following is a feature of monopolistic competition?

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What does “primary sector” of the economy include?

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What is the primary goal of a progressive tax system?

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