ECON30600 Economics of Climate Change

Academic Year 2023/2024

Climate change is one of the defining challenges of our time. It represents a classic case of externalities, whereby unpriced greenhouse gas emissions are produced in excess and cause damage to our planet. There are a unique set of attributes associated with climate change that make standard economic analysis very difficult to apply. It is a global problem requiring international cooperation, however the impacts are unequally distributed between wealthy and poorer countries. Large uncertainty around the future and current damages makes estimation of costs and benefits very difficult and therefore also assessment of the optimal policies to address the problem.
This module teaches students an economics framework through which to analyse the causes and solutions to climate change. It explores the economics research to address the particular challenges associated with climate change analysis. We study theoretical and emprical models of climate policy and look at existing case studies.
It is recommended that students take the module Economics of the Environment (ECON20160) before this module.

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Curricular information is subject to change

Learning Outcomes:

On successful completion of this module students should be able to:
- Demonstrate a comprehensive understanding of the key issues in the economics of climate change and related policy.
- Understand and be able to apply key economic methodologies to analyse challenges associated with climate change.
- Understand results from academic papers, reports and wide variety of literature on economics of climate change and use them in the analysis of empirical problems.
- Identify the types of data and analysis needed to analyse challenges presented in the climate change agenda.
- Write papers and reports to a high standard and quality on the current and future issues relating to global climate change.

Indicative Module Content:

The topics covered in this module include:
- Introduction to climate science and scenarios
- Costs of abatement
- Estimating climate damages: Discounting and uncertainty
- Policy instruments
- Optimal policy and benefit-cost analysis
- Impacts and adaptation
- International environmental agreements
- Climate change and development

Student Effort Hours: 
Student Effort Type Hours


Autonomous Student Learning




Approaches to Teaching and Learning:
This module will consist of lectures with in-class discussion in groups and a set of readings for independent learning. 
Requirements, Exclusions and Recommendations

Not applicable to this module.

Module Requisites and Incompatibles
Not applicable to this module.
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade In Module Component Repeat Offered
Examination: Final written exam 2 hour End of Trimester Exam No Alternative linear conversion grade scale 40% No


Continuous Assessment: Short assignments/quizzes will be set based on the independent readings and exercises covered in class. Throughout the Trimester n/a Alternative linear conversion grade scale 40% No


Class Test: Mid-term exam of 1 hour duration. Unspecified n/a Alternative linear conversion grade scale 40% No



Carry forward of passed components
Resit In Terminal Exam
Summer Yes - 2 Hour
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Feedback individually to students, on an activity or draft prior to summative assessment
• Feedback individually to students, post-assessment

How will my Feedback be Delivered?

Not yet recorded.

Name Role
Ms Nadiya Saba -- Tutor