ECN372 Climate Economics

Credits (ECTS):10

Course responsible:Knut Einar Rosendahl

Campus / Online:Taught campus Ås

Teaching language:Engelsk

Limits of class size:40

Course frequency:Annually

Nominal workload:250 hours

Teaching and exam period:This course starts in Autumn parallel. 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; 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.
  • Lectures (including guest lecturers) on campus with streaming and recording.

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

  • Supervision and feedback related to writing discussion notes.
  • Basic Microeconomics such as ECN110 Microeconomics I - How to Think Like an Economist.

    Basic Environmental Economics such as ECN170 Environmental and Resource Economics.

  • Portfolio assessment. The grade is determined based on two written discussion notes and an oral exam held during the teaching period. The discussion notes count 25%, the examination of one discussion note during the exam counts 25%, while the rest of the oral exam counts 50%.

  • External Examiner for the oral examination.
  • 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.

  • 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 30th 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.

  • 2x2 hours lectures until end of October, and then presentations of discussion notes
  • M-ECON and M-ØA

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

  • Minimum requirements for entrance to higher education in Norway (generell studiekompetanse)