Course code ECN472

ECN472 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 has teaching/evaluation in Autumn parallel.
Course frequency: Annually
First time: Study year 2019-2020
Preferential right:
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. 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.
Learning activities:

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

Preparation of written article, oral presentation and scientific discussions. 

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

Teaching support:
Some supervision related to writing article.
Selected journal articles and book chapters
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.
Recommended prerequisites:
ECN275 Natural Resource and Environmental Economics, or an equivalent intermediate course in environmental economics.
Mandatory activity:

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

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

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

Home exam (written article).
Nominal workload:
300 hours.
Entrance requirements:
MSc in Economics or Business
Type of course:
2x2 hours lectures until end of October, and then students' presentations of articles
ECN472 Climate Economics will have joint teaching with ECN372 Climate Economics. 
External examiner will control the quality of questions for the home exam (article), and principles for the assessment.
Examination details: Term paper: Passed / Not Passed