290118 SE Seminar in Economics (Macroeconomics) (2018W)

The first part of the seminar consists of lectures introducing the topic of environmental economics and its methods. In the second part, students will apply their knowledge by discussing issues related to the economics of climate change (presentations, term papers).

First part, lectures on the following:

Topics:
1. Introduction to Environmental Economics
2. Efficiency and Market Failure in the context of environmental goods
3. Environmental Policy: Targets and the „optimal level of pollution“
4. Environmental Policy: Strategies and Evaluation
5. Environmental Analysis: Cost Benefit Analysis and Alternatives
6. Valuation of Environmental Goods and Services
7. International Environmental Problems: Global Environment, Trade, Economic Development

Tools:

A. Graphical Illustrations in Economics Plotting and Interpreting
B. Basics of Economic Thinking
C. Basics of Data Analysis
D. Basics of Game Theory
E. Writing a Term Paper

Second part, presentations of students:

1. Climate Change: The Basics
1.1. Definition and Effects
1.2. Historical Developments
1.3. Causes and Correlations
1.4. Consequences of Climate Change
1.5. Future Scenarios and the Role of Uncertainty when Projecting
1.6. The Role of Economic Thinking

2. Policy Responses, Distributional Consequences and Incentives for Innovation
2.1. Command and Control Policies
2.2. Market Based Policies: Similarities and Differences in Practice
2.2.1. „Cap and Trade“ (Example: European Union Emissions Trading Scheme)
2.2.2. Carbon Tax
2.2.3. Hybrid Systems
2.3. Adaptation
2.4. Communicating Climate Change

3. Economic Approach to Valuing Climate Change
3.1. (Economic) Costs of Climate Change = (Economic) Benefit of Climate Change Mitigation
3.2. (Economic) Costs of Climate Change Mitigation
3.3. Examples of Integrated Assessment Modelling
3.3.1. Issue: Discounting
3.3.2. Issue: Uncertainty
3.3.3. Issue: Distributional Aspects (Time & Space)
3.4. The Stern Review and Its Critics

4. Climate Change: A Global Issue
4.1. International Treaties: Kyoto and Beyond
4.2. Problems and Mechanisms of international collective action