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#60773 / #7

Seit WiSe 2021/22


The Economics of Climate Policy


Edenhofer, Ottmar Georg




Fakultät VI

Institut für Landschaftsarchitektur und Umweltplanung (ILaUP)

36355100 FG Ökonomie und Politik des Klimawandels



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Learning Outcomes

"The Economics of Climate Policy" is an introductory course into economic assessment of climate change mitigation and adaptation policies. Game theory will be applied to understand the challenges in international climate negotiations. Along the lines of the Stern Review and the IPCC fifth assessment report, we provide a systematic overview of the relevant issues in climate change policy.


• The international politics of climate change: UNFCCC, Kyoto protocol, CDM, Copenhagen Accord, unilateral incentives • Climate stabilization as a global public good • Unilateral incentives for mitigation: co-benefits and the double dividend • Game-theoretic view of climate change as a public good and collective action problem • Market failures such as externalities, public goods • National and international policy instruments such as Pigouvian taxes and carbon markets • The European Union Emission Trading scheme (EU ETS) and Phase-Out-Coal

Module Components


All Courses are mandatory.

Course NameTypeNumberCycleLanguageSWSVZ
The Economics of Climate PolicyVLWiSeNo information2
The Economics of Climate PolicyUEWiSeNo information2

Workload and Credit Points

The Economics of Climate Policy (VL):

Workload descriptionMultiplierHoursTotal
90.0h(~3 LP)

The Economics of Climate Policy (UE):

Workload descriptionMultiplierHoursTotal
90.0h(~3 LP)
The Workload of the module sums up to 180.0 Hours. Therefore the module contains 6 Credits.

Description of Teaching and Learning Methods

The course consists of a lecture and a tutorial.

Requirements for participation and examination

Desirable prerequisites for participation in the courses:

Recommended: Basic knowledge in Microeconomics and Economic Policies (e.g. market failures) Desirable: Advanced knowledge in environmental economics

Mandatory requirements for the module test application:

No information

Module completion



Type of exam

Portfolio examination

Type of portfolio examination

100 points in total



Test elements

Homework Assignments55writtenNo information
Midterm test45writtenNo information

Grading scale

Test description (Module completion)

No information

Duration of the Module

The following number of semesters is estimated for taking and completing the module:
1 Semester.

This module may be commenced in the following semesters:

Maximum Number of Participants

This module is not limited to a number of students.

Registration Procedures

No prior registration for attendance required. Registration for the examination: following your StuPO / examination regulations

Recommended reading, Lecture notes

Lecture notes

Availability:  unavailable


Electronical lecture notes

Availability:  available
Additional information:
Slides and literature will be provided via ISIS.



Recommended literature
Barrett (1990): "The problem of global environmental protection"
Barrett (1994): "Self enforcing International Environmental Agreements"
Intergovernmental Panel on Climate Change (2014): Fifth Assessment Report
Nicholas Stern (2006): “The Economics of Climate Change – The Stern Review”.

Assigned Degree Programs

This module is used in the following Degree Programs (new System):

Studiengang / StuPOStuPOsVerwendungenErste VerwendungLetzte Verwendung
Environmental Planning (M. Sc.)13WiSe 2021/22WiSe 2022/23
Industrial Economics (M. Sc.)12SoSe 2022WiSe 2022/23
Information Systems Management (Wirtschaftsinformatik) (M. Sc.)12SoSe 2022WiSe 2022/23
Innovation Management, Entrepreneurship, and Sustainability (M. Sc.)12SoSe 2022WiSe 2022/23
Naturwissenschaften in der Informationsgesellschaft (B. Sc.)33WiSe 2022/23WiSe 2022/23
Ökologie und Umweltplanung (B. Sc.)24SoSe 2022WiSe 2022/23
Ökologie und Umweltplanung (M. Sc.)12SoSe 2022WiSe 2022/23
Urban Design (M. Sc.)14WiSe 2021/22WiSe 2022/23
Wirtschaftsingenieurwesen (M. Sc.)13WiSe 2021/22WiSe 2022/23
Wirtschaftsmathematik (M. Sc.)12SoSe 2022WiSe 2022/23

Students of other degrees can participate in this module without capacity testing.


You can take both modules [Economics of Climate Change (summer semester) / Economics of Climate Policy (winter semester)] as "lecture only" version without tutorial (3 ECTS), but we recommend the full version with lecture and tutorial [VL and UE (6 ECTS)].