The Economics of Climate Change

This seminar will look at the global problem of climate change, as well as possible solution instruments from an economics perspective. The seminar will consist of two parts. In the first part (the first four weeks), the problem of climate change will be introduced from an economics perspective. This will include aspects of modeling the problem as well as possible economic policy instruments, such as taxes, and cap-and-trade programs. Questions that will be addressed in this seminar are, for example, how much climate change is socially optimal, what is the role of individuals/consumers in mitigating climate change, what is the role of adaptation and climate engineering? How are international climate agreements negotiated? An additional focus will lie on game theoretic concepts to model the problem of climate change behavior, as well as experimental evidence.