The course will start from the basic climate change science and take you through the core economic concepts, models and analyses related to emission mitigation and then to the ongoing discussions and negotiations on a national and international level. A particular focus will be given to recent advances in the research on the valuation of costs and benefits over time under uncertainty. Gained knowledge may be applied within the course in an emissions trading experiment and a role play on the initial permit allocation in a trading scheme.
The objectives of this course will be to provide students with:
• an understanding of the strengths and weaknesses of the economic approach to mitigation of climate change;
• a knowledge of how to undertake an economic appraisal of projects designed to mitigate emissions of greenhouse gases such as the Clean Development Mechanism;
• an understanding of the economic arguments as to the relative merits of alternative instruments for the control of climate change.