The Economics of Climate Change

In this course we will apply the tools of economic analysis to the problem of global climate change. The goal is to expose students to how economists approach this important policy problem. The course will begin with a review of reasons for policy interventions in markets and policy instrument choice. We will then focus on the measurement of damages from emissions of greenhouse gases. Subsequent topics will include: discounting, technology and abatement costs, benefit-cost analysis, uncertainty and catastrophic risk, and policies in practice. Text: Climate Casino (Nordhaus, 2014). Additional readings: articles in environmental economics, natural science, and the popular press. (ECON 0255; ECON 0265 encouraged). 3 hrs. lect.