Global and Climate Change Economics
A.Y. 2025/2026
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 cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.
Course syllabus and organization
Single session
Responsible
Lesson period
First semester
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
8. Climate policy analysis: integrated assessment models
9. Climate policy analysis: dealing with uncertainty
10. Competitiveness, innovation and green policies
11. Evaluating the impact of climate policies with te potential outcome framework
12. Systemic view to climate policies: a macroeconomic perspective
13. Why optimal climate policies are not adopted? Distributional impacts and the populistic backlash
14. Why optimal climate policies are not adopted? The international dimension
15. 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
8. Climate policy analysis: integrated assessment models
9. Climate policy analysis: dealing with uncertainty
10. Competitiveness, innovation and green policies
11. Evaluating the impact of climate policies with te potential outcome framework
12. Systemic view to climate policies: a macroeconomic perspective
13. Why optimal climate policies are not adopted? Distributional impacts and the populistic backlash
14. Why optimal climate policies are not adopted? The international dimension
15. Improving international cooperation on climate change
Prerequisites for admission
Students are expected to be proficient in calculus; statistics; basic econometrics; microeconomics and environmental economics.
However, the course will accessible also to students without a strong quantitative background.
However, the course will accessible also to students without a strong quantitative background.
Teaching methods
Teaching activity is based upon frontal lectures, class presentation/discussion of group assignements, short quiz to revise past classes and debates on big policy issues.
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) a written exam (70% of grade) (b) a group presentation (30% of grade); (c) participation to the applied activities uo to 2 points of bonus.
If time permits, there will also be a quick test on the first part of the program. The test will be graded and you can choose the highest final grade between a grade with the test (where the test has a weight of 20%, the presentation 30% and the final exam 50%) or a grade without the test as described above.
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 final exam. Non-partecipating students are invited to study regularly and to contact the professor for clarifications and explanations during the semester.
The final exam consists in three parts: i. true/false/why questions; ii.short open questions; iii. an essay.
If time permits, there will also be a quick test on the first part of the program. The test will be graded and you can choose the highest final grade between a grade with the test (where the test has a weight of 20%, the presentation 30% and the final exam 50%) or a grade without the test as described above.
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 final exam. Non-partecipating students are invited to study regularly and to contact the professor for clarifications and explanations during the semester.
The final exam consists in three parts: i. true/false/why questions; ii.short open questions; iii. an essay.
Professor(s)
Reception:
please contact me to make an appointment
via Celoria 2, first floor