Global and Climate Change Economics
A.Y. 2024/2025
Learning objectives
This course provides a compendium to the economists' views on climate change. The course will apply economic and econometric principles to the analysis of climate change problems. Besides applying advanced microeconomics concepts to the analysis of climate policies as in a standard environmental economics course, the course will introduce the basics toolkit of climate modeling and the main econometric issues to estimate climate change impacts on socioeconomic variables. Finally, the international dimension of climate change policies will be analyzed using game theory and in-class games. An active students' participation is required through group presentations and collective discussions around the main debates on climate policies.
Expected learning outcomes
At the end of the course students will get a comprehensive knowledge of the main climate change issues and their policy solutions; will be familiar with pros and cons of different policy instruments; will get acquainted with the main econometric and modelling techniques used in climate change economics; will be up to date with the international climate change negotiation process, political drivers of climate policies and their acceptability. This knowledge will enable student to interpret critically the results of the rapidly expanding body of economic literature assessing the effect of climate change impacts and policies, will expand students' capacity to think in a multi-disciplinary way connecting political, scientific and economic processes on climate change issues; should contribute to form the students' skills to conduct independent research in these areas.
Lesson period: First semester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
First semester
Specific indications for the delivery of lectures and practicals in the academic year 2021/2022 will be given in the next months, according to the evolution of the sanitary situation.
Course syllabus
1. The energy challenge: growth vs. pollution
2. The scientific evidence on climate change
3. The big policy debate
4. Impacts of climate change, the damage function and the social cost of carbon
5. Econometric issues on climate change impacts
6. Climate policy analysis, basics
7. Climate policy analysis: multidimensional evaluation of different policies
7. Climate policy analysis: advanced topics (integrated assessment models, dealing with uncertainty)
8. Competitiveness, innovation and green policies
9. Politics of climate policies: domestic dimension
10. Politics of climate policies: international dimension
11. Applied lecture: the public good game
12. Improving international cooperation on climate change
2. The scientific evidence on climate change
3. The big policy debate
4. Impacts of climate change, the damage function and the social cost of carbon
5. Econometric issues on climate change impacts
6. Climate policy analysis, basics
7. Climate policy analysis: multidimensional evaluation of different policies
7. Climate policy analysis: advanced topics (integrated assessment models, dealing with uncertainty)
8. Competitiveness, innovation and green policies
9. Politics of climate policies: domestic dimension
10. Politics of climate policies: international dimension
11. Applied lecture: the public good game
12. Improving international cooperation on climate change
Prerequisites for admission
Students are expected to be familiar with undergraduate-level notions of calculus, statistics, and basic notions of microeconomics, macroeconomics, econometrics and environmental economics.
Teaching methods
Teaching activity is based upon lectures and class presentation/discussion of group assignements that are examining in depth topic analysed in class.
Teaching Resources
Slides of the lectures and various papers and chapters of book listed in the biblio (see course website on ARIEL).
The essential readings are copied here:
· Hsiang, S. and Kopp, R.E., 2018. An economist's guide to climate change science. Journal of Economic Perspectives, 32(4), pp.3-32.
· IPCC report 2013, synthesis for policymakers.
· IPCC report 2021, synthesis for policymakers.
· Chancel, L., Bothe, P., Voituriez T., 2023. Climate Inequality report 2023, World Inequality Lab.
· Carleton and Hsiang, 2016, Social and Economic Impacts of Climate, Science.
· Hsiang, S., 2016, Climate Econometrics, Annual Review of Resource Economics. (depending on your level skip or not technical details)
· Burke et al., 2015, Nonlinear effects of temperature on economic production, Nature.
· Becker, Gary S., Kevin M. Murphy, and Robert H. Topel. "On the economics of climate policy." The BE Journal of Economic Analysis & Policy 10, no. 2 (2011). (depending on your level skip or not technical details)
· Pindyck (2021), 'What We Know and Don't Know about Climate Change, and Implications for Policy', Environmental and Energy Policy and the Economy, volume 2, National Bureau of Economic Research (NBER).
· Stern, N. and Stiglitz, J.E., 2017. Report of the high-level commission on carbon prices.
· Tol, R.S., 2023. Social cost of carbon estimates have increased over time. Nature climate change, 13(6), pp.532-536.
· Hoffmann, R., Muttarak, R., Peisker, J. and Stanig, P., 2022. Climate change experiences raise environmental concerns and promote Green voting. Nature Climate Change, 12(2), pp.148-155.
· Chapters 9 and 10 of Perman, R., Ma, Y., McGilvray, J. and Common, M., 2003. Natural resource and environmental economics. Pearson Education.
The essential readings are copied here:
· Hsiang, S. and Kopp, R.E., 2018. An economist's guide to climate change science. Journal of Economic Perspectives, 32(4), pp.3-32.
· IPCC report 2013, synthesis for policymakers.
· IPCC report 2021, synthesis for policymakers.
· Chancel, L., Bothe, P., Voituriez T., 2023. Climate Inequality report 2023, World Inequality Lab.
· Carleton and Hsiang, 2016, Social and Economic Impacts of Climate, Science.
· Hsiang, S., 2016, Climate Econometrics, Annual Review of Resource Economics. (depending on your level skip or not technical details)
· Burke et al., 2015, Nonlinear effects of temperature on economic production, Nature.
· Becker, Gary S., Kevin M. Murphy, and Robert H. Topel. "On the economics of climate policy." The BE Journal of Economic Analysis & Policy 10, no. 2 (2011). (depending on your level skip or not technical details)
· Pindyck (2021), 'What We Know and Don't Know about Climate Change, and Implications for Policy', Environmental and Energy Policy and the Economy, volume 2, National Bureau of Economic Research (NBER).
· Stern, N. and Stiglitz, J.E., 2017. Report of the high-level commission on carbon prices.
· Tol, R.S., 2023. Social cost of carbon estimates have increased over time. Nature climate change, 13(6), pp.532-536.
· Hoffmann, R., Muttarak, R., Peisker, J. and Stanig, P., 2022. Climate change experiences raise environmental concerns and promote Green voting. Nature Climate Change, 12(2), pp.148-155.
· Chapters 9 and 10 of Perman, R., Ma, Y., McGilvray, J. and Common, M., 2003. Natural resource and environmental economics. Pearson Education.
Assessment methods and Criteria
Grading is based upon (a) an oral exam (50% of grade) (b) the drafting of an essay to be prepared as a group work and to be presented as a seminar during the lectures (25% of grade); (c) (if time permits) a quick test on the first part of the program (25%); (d) participation to the applied activities uo to 1/2 points of bonus. The topics for the essay will be assigned by the teacher. Groups will be composed by 3 to 4 students. Students not attending classes are not requested to participate to the working groups. In their case their evaluation will be based only on the exam.
Educational website(s)
Professor(s)
Reception:
please contact me to make an appointment
via Celoria 2, first floor