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The Climate and the Economy (ECO-AD-CLMCHG)

ECO-AD-CLMCHG

Purpose

The Climate and the Economy

Course content
This course is an introduction to the macroeconomics of climate change. The purpose is to get an understanding of how integrated assessment models in the spirit of William Nordhaus are constructed and used for evaluation of climate policies. The course is 10 hours with five classes. After the course, students are expected to understand the strength and weakness of integrated climate economy models, use them for policy evaluation and modify them to conduct their own policy experiment.

Requirements: Macroeconomics at the first year PhD level or advanced Master level.

Teachers: John Hassler, IIES, Stockholm University. Per Krusell may be guest lecturer. 

 

Description

Syllabus
1. The natural science background: The energy budget and the Greenhouse effect. 
2. The natural science background: The carbon circulation.
3. Climate damages.
4. Resource economics and externalities.
5. Integrated Assessment Models. 

Literature:
1. Natural science part of SNS report Swedish Policy for Global Climate (will soon be available for free download)
2.    ”Climate Policy”, Hassler, Krusell and Nycander, Economic Policy, 31:87, 2016, pp. 505-58.
3. Environmental Macroeconomics: Handbook of Macroeconomics Vol 2B.
4.   ”Optimal taxes on fossil fuel in general equilibrium”,  Golosov, Hassler, Krusell and Tsyvinski, Econometrica, 82:1 January, 2014, pp 41-88. 
5.    On the effectiveness of climate policies, Hassler, Krusell, Olovsson and Reiter. WP

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