Question

1. Select all the answers that apply.  _____________ refers to how errors or uncertainty in one variable multiply when that variable becomes part of a function involving other variables that might involve a certain degree of uncertainty or error as well. IAMs include _______ of the parameters to solve this problem.

		Propagation of Error; probability distributions
		Uncertainty Explosions; discount rates
		Uncertainty Explosions; probability distributions
		Cascading Uncertainties; discount rates

2.The problem with program-specific CBAs is that _________________________.

		the benefits are perceived in the long run but the costs are paid today, tomorrow and in the next 10 years.
		the costs are paid in the long run but the benefits are received today, tomorrow and in the next 10 years.
		the benefits are perceived in the long run and are paid today, tomorrow and in the next 10 years.
		the costs are paid in the long run and today, tomorrow and in the next 10 years

3. Select all the answers that apply. A discount rate...

		is used to reduce the loss generated by climate change in money terms by the length of time that passes before these damages are felt.
		aggregates the impact of climate change over time in one value.
		disaggregates the damage function.
		is arbitrary in IAMs.

Answer 1

1) The answer is: Uncertainty Explosions; probability distributions.

Integrated assessment models (IAMs) are designed to help us understand how human development and societal choices affect each other and the natural world, including climate change. They are “integrated” because they combine different strands of knowledge to model human society alongside parts of the Earth system.

2) The answer is: the benefits are perceived in the long run but the costs are paid today, tomorrow and in the next 10 years.

CBAS is a community-based day health program for older adults and adults with certain chronic medical, cognitive, or mental health conditions, or disabilities who are at risk of needing institutional care. This program used to be called Adult Day Health Care (ADHC).

3). The answers are:

A). is used to reduce the loss generated by climate change in money terms by the length of time that passes before these damages are felt.

B). aggregates the impact of climate change over time in one value.

D). is arbitrary in IAMs

In corporate finance, a discount rate is the rate of return used to discount future cash flows back to their present value. This rate is often a company’s Weighted Average Cost of Capital (WACC), required rate of return, or the hurdle rate that investors expect to earn relative to the risk of the investment.