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Scenario CO2 Is Not the Only Greenhouse Gas (GHG)that Impacts Global

question 25

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Scenario
CO2 is not the only greenhouse gas (GHG) that impacts global climate change. Other GHGs may be equally or more effective than CO2 at trapping heat on Earth. Climate scientists determine how much a GHG may impact global warming based on two factors: the efficiency with which a GHG absorbs energy (i.e., traps heat on Earth) and the length of time (in years) that the gas remains in the atmosphere. A unit of measurement called the Global Warming Potential (GWP) is used to describe how much energy a GHG absorbs over a specific period of time (100 years is a standard time frame) . All GWP values of GHGs are compared to the GWP of CO2, which is given a value of 1.
-CH4 has a GWP over 20 times higher than CO2. However, CH4 emitted today lasts for only about a decade in the atmosphere, while the GWP of CO2 can last for thousands of years. What is a possible reason that CH4 can have such a high GWP as compared to CO2?


Definitions:

Strike Price

The set price at which the holder of an options contract can buy or sell the underlying asset.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the issuing company's equity at certain times during its life, usually at the discretion of the bondholder.

Conversion Price

The predetermined price at which convertible security, such as a convertible bond or preferred stock, can be converted into a specified number of shares of common stock.

Conversion Value

The financial value of a convertible security if it is converted into a different form, typically shares of the issuing company's stock.

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