The Economics of Climate Change | Christian P. Traeger

Introduction to climate change

1
Greenhouse Effect and Related Material
Radiative forcing, feedback, aerosols, climate sensitivity, and global warming potential.
Slides 1–29
2
The Carbon Cycle
Stocks and flows, sinks and sources, and missing carbon.
Slides 30–42
3
Basic Facts on Emissions
Global and United States emissions.
Slides 43–66
4
Climate Change Observation
Temperature, ice, precipitation, and attribution.
Slides 67–92
5
Climate Change Predictions
Models, scenarios, and time scales.
Slides 93–111
6
Climate Change Impacts
General and California impacts, reasons for concern, and a first assessment.
Slides 112–131

1
A Brief Microeconomic Review: From Preferences to Efficiency
Preferences, utility, rates of substitution, efficiency, equilibrium, and welfare theorems.
Slides 1–25
2
Market Failure, Public Goods, and Externalities
Public goods, the Samuelson rule, Lindahl markets, and externalities.
Slides 26–52

1
Introduction to Instrument Choice
Policy instruments and criteria for choosing among them.
Slides 1–9
2
Bargaining (Coase)
Property rights as a policy instrument.
Slides 10–17
3
Standards and Taxes
Slides 18–37
4
Cap and Trade
Slides 38–50
5
Cap and Trade versus Taxes
Slides 51–58
6
Cap and Trade in Application: EU ETS
Slides 59–74
7
Cap and Trade in Application: United States
Slides 75–83

1
Part I
Cost-benefit analysis, market and social discount rates, and their determinants.
Slides 1–20
2
Part II
Normative and descriptive approaches, sustainability, hyperbolic discounting, and heterogeneity.
Slides 21–42

1
Risk, Expected Value, and Risk Aversion
Certainty equivalents and risk premia.
Slides 1–17
2
Classifications of Uncertainty
Slides 18–23
3
Willingness to Pay for a Risk Reduction
Slides 24–38
4
Learning
Option value, optimal mitigation with anticipated learning, and the precautionary principle.
Slides 39–73
5
Uncertainty and Discounting
Slides 74–77
6
Review Slides
Slides 78–85

1
Integrated Assessment of Climate Change and DICE
Why integrated assessment, the building blocks of IAMs, and damage representation in DICE.
Slides 1–16
2
Assessing Climate Policies with DICE
Baseline and optimal scenarios, temperature and concentration constraints, Kyoto, Stern, Gore, and parameter uncertainty.
Slides 17–28
3
Critiques of the DICE Model
Uncertainty, discounting, aggregation, and damages.
Slides 29–37