Economics of Climate Change

Course content

This course covers a range of topics on climate change, economic theory and policy analysis. It first discusses how climate change is analysed within the context of economic theory, focusing on externalities, global commons and intergenerational equity. Next, students will engage with various policy instruments?such as carbon pricing, emissions trading systems, subsidies for green technology, command-and control policies?and assess their effectiveness in mitigating climate impacts. The course also covers the concept of optimal policy design, weighing environmental benefits against economic costs, through various applications. Finally, it discusses the political, institutional, and behavioural barriers that hinder effective policy implementation at national and international levels.