Economics of Climate Change — Glossary

A situation where a country can produce a good or service more efficiently than another country, using fewer resources.

Climate finance mobilizes funds to support mitigation and adaptation projects addressing climate change in developing countries.

The difference between the funds needed to address climate change impacts and the actual financial resources provided by countries and organizations. It challenges global climate mitigation and adaptation efforts.

An economic principle stating that countries benefit by specializing in producing goods where they have a lower opportunity cost than others, enabling efficient trade.

An economic and political theory that explains global inequality as a result of historical exploitation and structural dependence of developing countries on developed ones.

A condition where countries are mutually reliant on each other for goods, services, and capital, affecting their political relations.

A set of proposals by developing countries in the 1970s to promote their interests through reforming global economic relations.

The responsiveness of the quantity supplied of a good to changes in its price in international markets.

Initiatives funded by the [World Bank](https://modeldiplomat.com/learn/glossary/world-bank) aimed at reducing poverty and promoting economic development in low-income countries.

A legal process resolving trade disputes between member countries to enforce WTO agreements.