ECN472 Climate Economics

Credits (ECTS):10

Course responsible:Knut Einar Rosendahl

Campus / Online:Taught campus Ås

Teaching language:Engelsk

Course frequency:Annually

Nominal workload:300 hours.

Teaching and exam period:This course has teaching/evaluation in Autumn parallel.

About this course

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.

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

    Preparation of written article and scientific discussions.

    ECN472 Climate Economics will have joint teaching with ECN372 Climate Economics.

  • Some supervision related to writing article.
  • ECN210 Intermediate Microeconomics- Consumers, Producers, Market and Welfare or ECN211 Intermediate Microeconomics - Institutions, Games and Market Failures or an equivalent course in microeconomics. ECN170 Environmental and Resource Economics (or ECN275 Natural Resource and Environmental Economics - theory) or equivalent basic course in environmental and resource economics.
  • Home exam (written article).
  • External examiner will control the quality of questions for the home exam (article), and principles for the assessment.
  • Physical participation in at least half the lectures (in classroom).

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

  • ECN472 Climate Economics will have joint teaching with ECN372 Climate Economics.
  • 2x2 hours lectures until end of October
  • Passed / Not Passed
  • MSc in Economics or Business