China December 2012

Schedule and reading list for training course on
Economics of Climate Change

M.A. Keyzer

Monday 10: General introduction
14:00-17:00, (room 2321)
Lecture 1:  Introduction to the Economics of Climate Change
Lecture 2:  Nature, culture and climate change: from Big Bang to present

Tuesday 11: Climate change and basics of environmental economics
9:00-12:00, (room 2321)
Lecture 3:  A short history of climate change at different temporal scales
Lecture 4: Static analysis of GHG emissions and capture: non-free disposal,
externality and non-convexity

Wednesday 12: Climate change in Economics
9:00-12:00, (room 2321)
Lecture 5: Dynamic analysis of climate change: Nature and the social discount rate

Thursday 13: Getting practical
9:00-12:00, (room 2602)
Lecture 6: From welfare model to project selection
Lecture 7: Project selection for climate policy in China

Friday 14: Wrap up
 9:00-12:00 (room 2321)

Reading list
Copeland, B.R. and M. Scott Taylor (2003), Trade and the Environment: Theory and Evidence. Princeton:
Princeton University Press.
Baumol, W. J. and W. E. Oates (1975) The theory of environmental policy. Prentice-Hall, Englewood Cliffs.
CCAP report: Impacts of Climate Change: adaptation and mitigation strategies in China’s agriculture
Ginsburgh, V. and M.A. Keyzer (2002) The Structure of Applied General Equilibrium models. Cambridge:
MIT Press: chapters 1, 2, 3, 7, 8, 9 and Appendix A 1-A4.
Stern, N. et al. (2006) Stern Review Report on the Economics of Climate Change. London: HM Government.
(Executive Summary)
Weizman, M.L. (2007) ‘A review of the Stern Review on the Economics of Climate Change’, Journal of
Economic Literature
, 45:703-723.
World Bank (2012) State and Trends of the Carbon Market.
Overall background: read about history of the planet  of the climate and of mankind, from Big Bang to
present, to get the big picture.


3 groups present their findings, between 2 and 3, or after break in morning

- chronology
- climate record for China
- CO2 emissions by (sub-)continent: 1850, 1900, 1950, 2000, 2050

- Negishi format: detail the proofs
- goods-for-bads trick
- Property rights over natural resources and the redistribution of income: make some calculations

Draw some reproduction cycles as alternatives to C:
- methane (part of C)
- fresh water
- nutrients: N, P, K, Ca, micro-nutrients ; possibly U, Cd
- pricing of emission targets on basis of WP3

- describe some IAM and perform CBA with fixed discount and with IRR