Environmental and Resource Economics – Module: Climate Economics

Dates

15 April– 19 April 2024. Mornings.

Scope

The course “Environmental and Resource Economics” is offered as different independent modules.

Upcoming modules cover circular economy, climate economics, and behavioural environmental economics.

This module: Climate economics

What are the economic consequences of climate change? By how much should these consequences be reduced by climate change adaptation and mitigation policies? Which economic instruments are effective and efficient in stimulating a low-carbon economy and how do these instruments function? The module “Climate Economics” picks up these questions.

Preventing climate change and limiting its consequences are high on the political agenda of many countries around the world, notably in the EU and its member states. While much of the debate is about physical climate change projections and technological aspects of the energy transition, this course examines the economic rationale of climate policy. The course offers an introduction to various methodologies to assess the economic consequences of climate change, including empirical methods, computational (catastrophe) models, and Integrated Assessment Models. We explore their underlying assumptions and interpretations of results, which are often at the basis for evaluating the desirability of implementing climate change adaptation and mitigation policies. The course will also offer insights into economic policy instruments for the mitigation of climate change, by focusing on the rationales for carbon pricing, and cover the topics of societal cost-benefit analysis of adaptation options.

Assessment method

• Assessment is based on a group paper of 3000-5000 words to be submitted the latest on Friday 10 May, where 2-3 student co-author a paper; based on the group papers and active participation in class students can earn 2 ECTS.
• It is possible to extend the course to 3 ECTS by writing up an individual research note (max. 2000 words – Economics Letters style).

Learning goals

At the end of this course the student:

• understands the interconnections between climate change and the economy;
• understands economic methods for assessing the impacts of climate change, and their key underlying assumptions;
• can interpret model outcomes and discuss implications for climate policy;
• understands cost-benefit analysis for evaluating the desirability of climate adaptation investments;
• understand economic policy instruments for climate change mitigation policies and how they score on key criteria, such as efficiency and equity.

Contents

Themes

• Climate change impacts on the economy

  • Empirical methods
  • Catastrophe models and macroeconomic models
• Integrated Assessment Models of optimal climate policy
• The social costs of carbon and carbon taxes
• Policies for addressing distributional effects of climate policy

Tools

• Empirical and numerical modelling of climate change impacts
• Climate-economy Integrated Assessment Models
• Cost-benefit analysis

Assumed knowledge

The course “Environmental and Resource Economics” is meant mainly for PhD candidates in economics and environmental sciences. Knowledge of “intermediate” microeconomics is beneficial, but selected readings will be provided so PhD-candidates without this pre-knowledge can follow the course. Essential methods on which the course builds will be introduced in the lectures. If in doubt whether this course is suitable for you, please send an email to the coordinator of the respective module.

Study materials

• Selected articles (available from electronic libraries)

Outline of the course

Classroom teaching on four mornings (lectures, exercises, group work), on Monday, Tuesday, Wednesday and Friday. Thursday is reserved for finalizing a draft plan group paper. Friday afternoon is reserved for consultation moments about this paper with the teacher.

General information

Registration

Go to Registration form

Registration deadlines:

• Early bird:11 March 2024
• Regular: 20 March 2024

Course duration

The module is taught in Wageningen (WUR) in one week in April 2024. It comprises classroom teaching on four mornings (lectures, exercises, group work), Monday, Tuesday, Wednesday, Friday. Friday afternoon is reserved for feedback moments. The other afternoons are available for self-study and group work.

Credit points

2-3 ECTS (See explanation under "Scope")

Language

English

Group size

12-25 people

Frequency

Once per year.

Fee

The course fee includes coffee, tea and lunch on all days.

The fee does not include accommodation, breakfast or dinner. Accommodation is not included in the fee of the course, but there are several possibilities in Wageningen. For information on B&B’s and hotels in Wageningen please visit proefwageningen.nl/overnachten. Another option is Short Stay Wageningen. Furthermore, Airbnb offers several rooms in the area. Note that besides the restaurants in Wageningen, there are also options to have dinner at Wageningen Campus.

Cancellation conditions

Up to 11 March, (first) cancellation is free of charge.
Up to two weeks prior to the start of the course (1st April), a fee of early bird reduced fee will be charged.

After this date you will be charged the full registration fee, unless:

• You can find someone to replace you in the course and supply the course coordinator with the name and contact information of your replacement. In this case you will only be charged a € 50,- cancellation fee.
• You have a valid reason to cancel (illness or death in the family 1st or 2nd degree). Your supervisor/PI must send a mail indicating the reason for cancellation. In this case you will only be charged a € 50,- cancellation fee.

Note: If you would like to cancel your registration, ALWAYS inform us. By NOT paying the participation fee, your registration is NOT automatically cancelled (and do note that you will be kept to the cancellation conditions).

Also note that when there are not enough participants, we can cancel the course. We will inform you if this is the case a week after the early bird deadline. Please take this into account when arranging your trip to the course (I.e. check the re-imburstment policies).