Module description
Global climate change is thought by many to be the most significant environmental challenge of the 21st century. Unchecked, the continued accumulation of greenhouse gases over this century is projected to warm the planet by about 2 to 5 °C (4 to 9 °F) by the end of this century, with associated impacts on the environment, economy, and society. Because the emissions of greenhouse gases result from virtually every kind of economic activity -- driving a car, heating a home, operating a steel mill, raising cows -- any policy aimed at reducing emissions will have significant and broad-based impacts on the economy. This course will explore the economic characteristics of the climate change problem, assess national and international policy design and current implementation issues, and survey the economic tools necessary to evaluate climate change policies.
Assessment details
Presentation (30% of overall module mark)
Unseen examination (70% of overall module mark)
Educational aims & objectives
As climate change is one of the pressing challenges humankind faces, this module looks at the economics of the problem and some policies that are used to address the problem.
- Introduce students to advanced empirical methods and approaches used in economic research on climate change policies.
- Introduce students to advanced theoretical approaches required to understand specific climate change policies.
- Familiarize students with the economic literature on specific climate change policies, such as carbon pricing.
- Guide students through an empirical research project on the economics of climate change to prepare them for a dissertation project.
Learning outcomes
- Understand how economic methods can be applied to global climate change challenge facing society
- Understanding difficulties arising in using economic analysis in climate change policy design
- Solving and manipulating a variety of theoretical models in environmental and climate change economics, and critically evaluate those models
- Develop a good understanding of how economic theory can be applied in understanding and addressing climate change policy problems
- Ability to express an informed view regarding the potential of economics to help societies achieve their climate change goals
- Demonstrate good inter-personal and communication skills through your presentation and contributing to critical discussion
- A real-world understanding of the multifaceted business risks posed by climate change, and the strategic opportunities and untapped value that arise from taking action.
Teaching pattern
2-hour weekly lecture and 1-hour weekly seminar
Suggested reading list
- Gollier, Christian. 2012. Pricing the Planet’s Future: The Economics of Discounting in an Uncertain World. Princeton: Princeton University Press.
- Helm, Dieter, and Cameron Hepburn. 2011. The Economics and Politics of Climate Change. Oxford: Oxford University Press.
- Pindyck, Robert S. 2022. Climate Future: Averting and Adapting to Climate Change. New York, NY: OUP USA.
- Stern, Nicholas. 2015. Why Are We Waiting?: The Logic, Urgency, and Promise of Tackling Climate Change. Lionel Robbins Lectures. Cambridge, MA: MIT Press.
- Tol, Richard S. J. 2019. Climate Economics: Economic Analysis of Climate, Climate Change and Climate Policy, Second Edition. 2nd ed. Cheltenham: Edward Elgar Publishing
- Wagner, Gernot, and Martin L. Weitzman. 2016. Climate Shock: The Economic Consequences of a Hotter Planet. Princeton: Princeton University Press.