Content
"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. This includes, inter alia:
• 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
• policy instruments such as Pigouvian taxes and carbon markets
• the European Union Emission Trading scheme (EU ETS)