Domestic and International Climate Policies

This course presents climate change policy under its multiple economic facets. Climate change is both an environmental problem and an economic and social problem. There is no silver bullet to address it. A variety of domestic and international policies need to be implemented. This course analyses different economic scenarios in which climate change and climate policy play a crucial role. It compares different policy measures in different countries and regions. And it highlights the consequences of climate change on social and economic variables. In particular, the course discusses the main economic asymmetries induced by climate change, both in terms of costs of the various impacts and in terms of costs of policies to address climate change. Given this background, the course discusses the different negotiation positions at the Conference of the Parties and the difficulties in achieving an agreement to control GHG emissions. Using a game-theoretic framework that describes international climate negotiations, it will then be possible to identify the main properties of an effective international agreement on climate change control. Finally, the course will examine recent climate negotiations and measures to reduce GHG emissions adopted in Europe (from the Green Deal to the Fitfor55 package).

1. Knowledge and understanding:
1.1 Understand the role of economics in addressing climate change
1.2. Compare different climate policy instruments
1.3 Understand the dynamics of international negotiations on climate change

2. Ability to apply knowledge and understanding:
2.1. Assess impacts of climate change
2.2. Apply economic instruments to mitigate climate change
2.3. Identify solutions to reduce obstacles towards international climate agreements

3. Judgment skills:
3.1. Assess pros and cons of different climate policy instruments
3.2. Understand the future of economic and energy systems taking climate and technological change into account
3.3. Evaluate the success probability of international negotiations on climate change

Very good knowledge of economics, mathematics and statistics. Students should also be familiar with the main impacts of climate change and should follow the debate on the measures and policies to address climate change. Student should be familiar with the contents of the most recent IPCC reports before lectures start.

1. An overview of the main policy instruments to deal with climate change
2. The state of climate negotiations
3. Climate policy in Europe. From the EU ETS to the EU Green Deal, to the Fitfor55 Package
4. Climate finance
5. Climate innovation
6. Sustainable consumption as a cornerstone of climate mitigation efforts

- IPCC - Sixth Assessment Report, free downloadable at www.ipcc.ch, Please read at least the executive summary of the three volumes
- Scott Barrett, Carlo Carraro, Jim De Melo, Towards a Workable and Effective Climate Regine, CEPR Press 2015, free downloadable at www.cepr.org (anche in francese per la casa editrice Economica).
- Nicholas Stern, Why Are We Waiting? The Logic, Urgency and Promise of Tackling Climate Change, MIT Press, 2014
- Gernot Wagner and Martin L. Weitzman, Climate Shock: The Economic Consequences of a Hotter Planet , Princeton University Press, 2014

Students may pass the exam by writing a few essays during the lecture period. Students will be asked to write a few essays on different topics, linked to what discussed and taught in lectures or as a way to apply and deepen the contents of the lectures.

Lectures and workgroups. Students will be asked to prepare short essays that will be discussed in class. Much of the learning process should take place before and during the course, to make lectures more participated and interesting, and to give students the capacity to use and apply the acquired knowledge.

English

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