AØKA08235U Economics of the Environment and Climate Change (p)

Volume 2024/2025
Education

MSc programme in Economics – elective course

Bacheloruddannelsen i økonomi – The Danish BSc programme in Economics -prioritized elective at the 3rd year (symbolized by ‘p’)

 

The course is open to:

  • Exchange and Guest students from abroad
  • Credit students from Danish Universities
  • Open University students
Content

The course introduces the economic concepts and methods relevant for analyzing problems and policies relating to the environment and climate change. The course will explain the environmental economic approach to sustainable development and the role that economic instruments can play in protecting the environment and fighting global warming. The course will also cover recent developments in the field beyond the most relevant textbook, especially in integrated assessment modelling of climate change. 

Taking the course will prepare students for further advanced studies in the Economics of the Environment, Natural Resources and Climate Change at the Master level.

Learning Outcome

After completing the course, the student is expected to be able to:

 

Knowledge:

  • Explain how economic activity depends upon and affects the environment.
  • Describe the evolution of the main ideas in the history of environmental economics.
  • Account for the concepts of optimality and sustainable development used in the theory of environmental economics.
  • Describe the main challenges relating to global warming.
  • Account for the relevance of the theory of public goods and externalities for environmental and climate economics.
  • Describe the main alternative instruments of pollution control and climate policy and the criteria for the choice among them.
  • Identify/ List the factors that should guide the choice of pollution control instruments when policy makers have imperfect information.
  • Account for how basic concepts from game theory can help to analyze international environmental problems such as global warming.
  • Identify and account for the main features of a climate-economy model.
  • Reflect on/ Describe the arguments and evidence in the debate on the effects of international trade on the environment.
  • Explain the alternative methods used to value non-marketed environmental goods and services.

 

Skills:

  • Explain and present central economic theories and models of the economy-environment nexus in a clear language.
  • Apply the standard mathematical method to analyze environmental policy problems such as the determination of the optimal level of pollution abatement and the optimal environmental tax rates.
  • Apply the tools of economic analysis to illustrate typical trade-offs in environmental and climate policy.
  • Master programming scripts (e.g., in MATLAB) for climate-economy models.
  • Debate and present the problems related to the economics of the environment and climate change.

 

Competencies:

  • Plan, perform and implement an economic analyze environmental policy problems.
  • Carry out a critical evaluation of the strengths and weaknesses of the theories and models.
  • Present and evaluate key parts of the theory of environmental regulation and discuss the role of the state and the market in the implementation of environmental policy goals.
  • Apply the theoretical and empirical insights from the course in a critical analysis and discussion of important real-world problems and complex issues of environmental and climate policy.

 

Literature

The main syllabus of the course consists of selected chapters from the textbook by Roger Perman, Yue Ma, Michael Common, David Maddison, and James Gilvray: Natural Resource and Environmental Economics, 4th edition, Addison Wesley, 2011 (ISBN: 978-0-321-41753-4).

In addition, journal articles will be included in the syllabus.

 

Students should have followed courses corresponding to Microeconomics I, Microeconomics II, Macroeconomics I, Macroeconomics II, Mathematics A and Mathematics B at the Bachelor programme in Economics, University of Copenhagen.
Lectures presenting the relevant theories and evidence.
An active dialogue between the teacher and students and between students during the lectures will be strived for.

Students will be encouraged to work with exercises related to the lectures in groups or individually. These exercises will be covered in the exercise classes.
2 hours lectures/ exercise classes 1 to 2 times a week from week 6 to 20.
  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 161
  • Exam
  • 3
  • Total
  • 206
Written
Oral
Individual
Collective
Peer feedback (Students give each other feedback)

The lecturer gives oral feedback on questions raised by students during the lectures, exercise classes and during the lecturer’s designated office hours.

There will also be feedback on the mandatory term paper.

Credit
7,5 ECTS
Type of assessment
On-site written exam, 3 hours under invigilation
Type of assessment details
ITX-exam in the exam venues of the university.
Exam registration requirements

To qualify for the exam, the student must submit and have approved a mandatory term paper by the specified deadlines during the course.

Aid
Without aids

 

 

Marking scale
7-point grading scale
Censorship form
No external censorship
at the written exam.

An oral re-examination may be with external assessment.
Exam period

Exam information:

The examination date can be found in the exam schedule  here

The exact time and place will be available in Digital Exam from the middle of the semester. 

More information about examination, rules, aids etc. at Master(UK), Master(DK) and Bachelor(DK).

Re-exam

Oral reexam 20 minutes without preparation time. 

No aids allowed during the examination.


To qualify for the re-exam, the student must submit and have approved a mandatory term paper by the specified deadlines during the course.

 

Reexam information:

The reexamination date/period can be found in the reexam schedule  here

More information in Digital Exam in August. 

More info: Master(UK), Master(DK) and Bachelor.

Criteria for exam assesment

Students are assessed on the extent to which they master the learning outcome for the course.

 

In order to obtain the top grade “12”, the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.

 

In order to obtain the passing grade “02”, the student must in a satisfactory way be able to demonstrate a minimal acceptable level of  the knowledge, skills and competencies listed in the learning outcomes.