Aims

This module will provide students with an overview of economic and public policy issues around sustainability and climate change. The module will cover relevant theoretical approaches as well as the major approaches to causal inference across two broad topic areas. The first covers basics of production, externalities and public goods with a specific focus on topics such as the consequences of pollution and the “pricing” of nature and other non-monetary quantities for cost-benefit-analysis as well as regulatory approaches to more sustainable practices in the production of goods and services. This block will also introduce the role of trade and transport costs, given the importance of global trade and international supply chains for the modern economy. The second topic area will focus on the societal consequences of climate change and their mitigation. It will cover topics such as the consequences of natural disasters, migration as well as mitigatory measures around green transition, for example retrofitting of the housing stock.

Outline Of Syllabus

Production, externalities and public goods:
1. Theory: Production and markets
2. Externalities and consequences of pollution:
a. Empirical methods: Causal inference
b. Lead
c. Air pollution
3. Pricing the value of nature and other public goods, Cost-benefit analysis: Value of a statistical life, other costs
4. Policy measures:
a. Bans
b. Cap
c. Pricing
5. Trade, carbon leakage, changes to/greening of transport

Climate change and its societal consequences:
6. Natural disasters:
a. Two examples from history: Dust bowl, Hurricane Katrina
b. Natural disasters and trade
7. Green transition:
a. In production
b. Housing
8. Migration:
a. What does migration do? Theory and evidence
b. Refugees and displaced persons

Teaching Rationale And Relationship

Lecture hours will combine classical lectures to explain topics and present research designs and results with group discussions of content

Assessment Rationale And Relationship

N/A