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. 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. 1. Policies to reduce emissions in Norway and the EU. 2. Climate and technology policies. 3. Carbon leakage from national climate policies. 4. Policies for implementing Reduced Emissions from Deforestation and forest Degradation (REDD) in developing countries.

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.
• Analyse and understand the effects of policies to reduce greenhouse gas emissions, including the effect on emissions, costs, technological progress, and carbon leakage.
• 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.