The Cost of Decarbonizing
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Provided by: OER Project|Published on: October 23, 2025
Lesson PlansScientist Reviewed
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Scientist Reviewed This resource has been reviewed by SubjectToClimate's climate scientists and verified for scientific accuracy and up-to-date information. Learn about our review process →
Synopsis
- This module from OER Project Climate introduces the green premium and helps students analyze why some low-carbon options currently cost more and how policy and other measures can lower those premiums over time.
- Students will calculate green premiums with real examples, interpret a short opener on trade-offs, evaluate the efficacy of the IRA in reducing green premiums, and craft an evidence-based product pitch for decision-makers to reduce green premiums.
Subjects: Economics, Engineering
Authors: OER Project: Climate
Region: Global
Languages: English
Teaching Materials
Positives
- Many of the articles and other linked materials have glossaries and other vocabulary tools to assist with vocabulary acquisition.
- Authentic contexts strengthen economic reasoning about decarbonization choices and equity.
Prerequisites
- Students should understand the basics of greenhouse gases, marginal cost vs. purchase price, and interpreting simple data tables and word problems.
- Teachers will need to create a free account to access the Teaching Guide for this module.
- Teachers may want to build students' background knowledge on the Inflation Reduction Act before they explore the Policy Analysis. Teachers can use this lesson plan to provide additional information.
Differentiation & Implementation
- Teachers may want to skip the Unit 3 Assessment if they are using this module as a standalone resource.
- Students can form jigsaw groups to explore the DBQ sources and weigh the risks/benefits of intervention.
- For extension, analyze how specific IRA incentives reduce premiums for one technology in your region and propose a targeted local policy.
- Teachers can ask students to link their product to one of the Sustainable Development Goals. If students are unfamiliar with the SDGs, teachers can find resources to introduce them in this guide.
This resource examines the economics of climate action. The included infographic is very helpful in understanding how understanding the green premium can help drive policy and personal choices. Several high-quality sources are presented. This resource is recommended for teaching.
Teaching Tips
Standards
Resource Type and Format
About the Partner Provider
OER Project
OER Project equips teachers with free, innovative curricula and teaching tools that spark curiosity and inspire critical thinking in students. Our courses place student inquiry at the center of learning, and are designed to be adaptable across age levels and state standards.
Scientist Reviewed
This resource has been reviewed by SubjectToClimate's climate scientists and verified for scientific accuracy and up-to-date information. Our review process ensures that every resource in our library reflects the current state of climate science.
Learn about our review process →
