The course “Environmental and Resource Economics” is offered as different independent modules. Upcoming modules cover circular economy, climate economics, and behavioural environmental economics. What are the economic consequences of climate change? By how much should these consequences be reduced by climate change adaptation and mitigation policies? Which economic instruments are effective and efficient in stimulating a low-carbon economy and how do these instruments function? The module “Climate Economics” picks up these questions. Preventing climate change and limiting its consequences are high on the political agenda of many countries around the world, notably in the EU and its member states. While much of the debate is about physical climate change projections and technological aspects of the energy transition, this course examines the economic rationale of climate policy. The course offers an introduction to various methodologies to assess the economic consequences of climate change, including empirical methods, computational (macroeconomic) models, and Integrated Assessment Models. We explore their underlying assumptions and interpretations of results, which are often at the basis for evaluating the desirability of implementing climate change adaptation and mitigation policies. The course will also offer insights into economic policy instruments for the mitigation of climate change, by focussing on the rationales for carbon pricing, and cover the topics of societal cost-benefit analysis of adaptation options and economic drivers of climate migration.
At the end of this course the student:
- understands the interconnections between climate change and the economy;
- understands economic methods for assessing the impacts of climate change, and their key underlying assumptions;
- can interpret model outcomes and discuss implications for climate policy;
- understands cost-benefit analysis for evaluating the desirability of climate adaptation investments;
- understand economic policy instruments for climate change mitigation policies and how they score on key criteria, such as efficiency and equity.
- Assessment is based on a group paper of 3000-5000 words to be submitted the latest on Friday 28 October, where 2-3 student co-author a paper; based on the group papers and active participation in class students can earn 2 ECTS.
- It is possible to extend the course to 3 ECTS by writing up an individual research note (max. 2000 words – Economics Letters style).
- Climate change impacts on the economy – Empirical methods – Catastrophe models and macroeconomic models
- Integrated Assessment Models of optimal climate policy
- The social costs of carbon and carbon taxes
- Policies for addressing distributional effects of climate policy
- Empirical and numerical modelling of climate change impacts
- Climate-economy Integrated Assessment Models
- Cost-benefit analysis
Overall program: Classroom teaching on four mornings (lectures, exercises, group work), on Monday, Tuesday, Wednesday and Friday. Thursday is reserved for finalizing a draft group paper. Friday afternoon is reserved for consultation moments about this paper with the teacher Detailed Program: Monday 3 October: Overview of the field and sectoral impacts climate change. Tuesday 4 October: Macroeconomic impacts of climate change Wednesday 5 October: Economics of climate adaptation and carbon pricing Thursday 6 October: Group work on paper assignment Friday 7 October: Distributional issues of climate change mitigation policies and climate migration
Textbook / Course materials
Selected articles (available from electronic libraries)
The course “Environmental and Resource Economics” is meant for PhD candidates and research master students in economics and environmental sciences. Knowledge of “intermediate” microeconomics is beneficial, but selected readings will be provided so PhD-candidates without this pre-knowledge can follow the course. Essential methods on which the course builds will be introduced in the lectures. If in doubt whether this course is suitable for you, please send an email to the coordinator of the respective module.
The module is taught in Wageningen (WUR) in one week in October 2022. It comprises classroom teaching on four mornings (lectures, exercises, group work), Monday-Thursday. Friday afternoon is reserved for feedback moments. The other afternoons are available for self-study and group work.
2-3 ECTS (See explanation at Scope)
Self-study hours and group work
For 2 ECTS: 16 hours preparation ±20 hours afternoon self-study and group work, including finalising the paper For 3 ECTS: It is possible to extend the course to 3 ECTS by writing up an individual research note (max. 2000 words – Economics Letters style). See explanation at Scope
- WIMEK/PE&RC/WASS/EPS/VLAG/WIAS/ PhDs with TSP and postdocs of these graduate schools: early bird €250, regular €290
- SENSE PhDs and postdocs: early bird €500, regular €540
- MSC students UU: early bird €500, regular €540
- All other PhD candidates and postdocs, as well as staff and fellows of WUR Graduate Schools and the other graduate schools mentioned above: early bird €540, regular €580
- All others: early bird €620, regular €660
Included in the fee
Coffee, tea and lunch for the 4 days that teaching takes place (all days apart from Thursday)
Accommodation, breakfast and dinners; Accommodation is not included in the fee of the course, but there are several possibilities in Wageningen. For information on B&B’s and hotels in Wageningen please visit proefwageningen.nl. Another option is Short Stay Wageningen. Furthermore Airbnb offers several rooms in the area.
Up to 22 August, (first) cancellation is free of charge. Up to twee weeks prior to the start of the course (September 19th), a fee of early bird reduced fee will be charged. After this date you will be charged the full registration fee, unless:
- You can find someone to replace you in the course and supply the course coordinator with the name and contact information of your replacement. In this case you will only be charged a € 50,- cancellation fee.
- You have a valid reason to cancel (illness or death in the family 1st or 2nd degree; corona travel restrictions). Your supervisor/PI must send a mail indicating the reason for cancellation. In this case you will only be charged a € 50,- cancellation fee.