Climate Economics — Course Description
Climate economics is a branch of environmental economics that studies how climate change affects the economy and how policies can reduce emissions and manage climate risks. Environmental economics more broadly looks at how economic activity impacts the natural world and how societies can grow while using resources efficiently and limiting environmental harm. In this course, we use economic reasoning to understand benefits, costs, and trade offs so we can make sense of real world environmental and climate challenges.
Part I introduces the core ideas of environmental economics: why markets often fail to protect the environment, how externalities and public goods work, and why open access resources tend to be overused. We also learn how economists measure the value of environmental benefits that aren’t traded in markets.
Part II focuses on the economics of climate change and the policies designed to address it. We examine how carbon taxes and emissions trading systems work, and why they are central tools for reducing greenhouse gas emissions. We then explore the roles of forests, innovation, and clean technologies in a low carbon transition. The final sessions cover climate finance, international climate policy, and behavioral insights that shape how people perceive climate change. The course ends with case studies showing what makes climate policies succeed—or fail—in practice.
Climate economics is a branch of environmental economics that studies how climate change affects the economy and how policies can reduce emissions and manage climate risks. Environmental economics more broadly looks at how economic activity impacts the natural world and how societies can grow while using resources efficiently and limiting environmental harm. In this course, we use economic reasoning to understand benefits, costs, and trade offs so we can make sense of real world environmental and climate challenges.
Part I introduces the core ideas of environmental economics: why markets often fail to protect the environment, how externalities and public goods work, and why open access resources tend to be overused. We also learn how economists measure the value of environmental benefits that aren’t traded in markets.
Part II focuses on the economics of climate change and the policies designed to address it. We examine how carbon taxes and emissions trading systems work, and why they are central tools for reducing greenhouse gas emissions. We then explore the roles of forests, innovation, and clean technologies in a low carbon transition. The final sessions cover climate finance, international climate policy, and behavioral insights that shape how people perceive climate change. The course ends with case studies showing what makes climate policies succeed—or fail—in practice.
- Teacher: Miria PIGATO