Course code ECN372

ECN372 Climate Economics

Norsk emneinformasjon

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Showing course contents for the educational year 2022 - 2023 .

Course responsible: Knut Einar Rosendahl
Teachers: Arild Einar Bjørn Angelsen, Ståle Navrud
ECTS credits: 10
Faculty: School of Economics and Business
Teaching language: EN
(NO=norsk, EN=Engelsk)
Limits of class size:
Teaching exam periods:
This course starts in Autumn parallel. This course has teaching/evaluation in Autumn parallel.
Course frequency: Annually
First time: Study year 2009-2010
Preferential right:


If not admitted to the course, it is possible to take ECN372F instead.

Course contents:

The course consists of two main parts:

I) THE GLOBAL CLIMATE REGIME AND CLIMATE NEGOTIATIONS. Here we discuss factors affecting the global climate negotiations and agreements such as the Paris agreement. Topics include: (1) Economic costs of climate change - how to value future damage costs, and how to deal with risk and uncertainty?; (2) Main principles for the global climate regime - emission targets, global carbon price etc.; (3) Fair distribution of emission targets between countries; and (4) The climate game - what does economic theory tell us, and what is actually happening in the negotiations?

II) NATIONAL CLIMATE POLICIES. Here we discuss different policies to reduce emissions of greenhouse gases including: (1) Policies to reduce emissions in Norway and the EU; (2) Climate and technology policies; (3) Carbon leakage from national climate policies; and (4) Policies for implementing Reduced Emissions from Deforestation and forest Degradation (REDD) in developing countries.

Learning outcome:

The students should:

  • Apply environmental economic theory on the climate change problem, including explaining what is optimal reduction of greenhouse gas emissions from a global perspective, and which factors that are important in this respect.
  • Apply game theory to explain what drives countries' positions in the climate negotiations, and what kind of climate agreements one may expect based on economic theory.
  • Identify, analyse and understand the effects of policies to reduce greenhouse gas emissions, including the effect on emissions, costs, technological progress, and carbon leakage.
  • Identify, analyse and understand driving forces behind deforestation in developing countries, and how policies might be used to reduce deforestation.
  • Have knowledge about the international climate regime and climate policies, and insight to assess the effects of proposed climate policies.
  • Work both independently and in pairs in preparing written reports, making oral presentation and taking part in scientific discussions.
Learning activities:

Lectures (including guest lecturers) on campus with streaming and recording.

Preparation of written discussion notes alone and in pair, oral presentation and scientific discussions. 

Teaching support:
Supervision and feedback related to writing discussion notes.
Selected journal articles and book chapters.
Intermediate Microeconomics such as ECN210 Intermediate Microeconomics - Consumers, Producers, Market and Welfare or ECN211 Intermediate Microeconomics - Institutions, Games and Market Failures. Basic Environmental Economics such as ECN170 Environmental and Resource Economics.
Recommended prerequisites:
Mandatory activity:

Physical participation in at least half the lectures (in classroom).

Oral presentation of own discussion note and oral comment/question to someone else's note.

Approved activities are valid until the next time the course is given. No re-examination is offered. 

Portfolio assessment. The grade is determined based on two written discussion notes and an oral exam held during the teaching period. The discussion notes and the examination of one discussion note during the exam jointly count 50%, while the rest of the oral exam count 50%. 
Nominal workload:
250 hours
Entrance requirements:
Minimum requirements for entrance to higher education in Norway (generell studiekompetanse)
Type of course:
2x2 hours lectures until end of October, and then presentations of discussion notes

Incoming exchange students are welcome to contact student advisors at the School of Economics and Business ( for admission to the course.

Limits of class size. Registration by application in StudentWeb. Note that the deadline is earlier than for other courses that are taught in Autumn parallel. Application deadline for the course is 25th of August.

First come first serve if there are available seats after this deadline. If it is fully booked, please contact to be signed up on a waiting list.

Note! Attendance at the first lecture is mandatory. If there are seats available after the first lecture, students on the waiting list will be contacted and invited to the course.

External Examiner for the oral examination.
Examination details: Portfolio: Letter grades