wir890 - Climate Economics

At the end of the lecture period

Written exam (max. 120min)

This course aims at giving students an understanding of reasons, objectives and economic instruments for climate policy. Students first get acquainted with the natural science of the climate where anthropogenic greenhouse gas emissions constitute the source of man-made climate change. The latter is then explained from an economic perspective as a global environmental externality calling for environmental regulation to avoid substantial market failures. Game theoretic analysis of international negotiations and agreements provides key insights about the fundamental problems of free-riding and efficient climate policy design. Beyond theoretical propositions, 15 the lecture will critically discuss past and contemporary climate policies such as the Kyoto Protocol, the Paris Agreement, or the EU Emissions Trading System