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Circular and Energy Economics
Economics of Climate Change and Sustainability

Economics of Climate Change and Sustainability

Code	18200
Year	1
Semester	S2
ECTS Credits	6
Workload	TP(30H)
Scientific area	Economics
Entry requirements	NA
Learning outcomes	The aim of the course is to provide an understanding of critical economic issues of climate change (CC) and of the climate policy measures in a national, global and sustainability perspectives. After completing the course, the student should be able to: 1. Describe key issues of CC agenda and demonstrate a knowledge of what economics can offer to address them; 2. Incorporate economic considerations in scientific and political analyses of CC issues; 3. Understand the role of economic instruments in designing appropriate CC policies; 4. Debate the relevance and limitations of economic approaches to the control of CC; 5. Explain the role of energy prices in mitigating the effects of CC; 6. Undertake independent research in the area of the economics of CC mitigation; 7. Communicate effectively both in written and speaking.
Syllabus	1. CAUSES AND CONSEQUENCES OF CLIMATE CHANGE 1.1 Trends and Projections for Global Carbon Emissions 1.2 Trends and Projections for Global Climate 2. ECONOMIC ANALYSIS OF CLIMATE CHANGE 2.1 Economic impacts of climate: the social cost of carbon 2.2 Cost-Benefit Studies of Global Climate Change 2.3 The Role of Energy Prices in Global Climate Change 2.4 Energy Transition and Climate Change 3. CLIMATE CHANGE: MACROECONOMIC LONG-TERM EFFECTS 3.1 Climate Change and Economic Growth 3.2 Climate Change, Inflation and Monetary and Fiscal Polices 3.1 Climate Change and Inequality 4. CLIMATE CHANGE: ECONOMIC POLICY RESPONSES 4.1 Economic Policy Options: Carbon Taxes 4.2 Economic Policy Options: Tradable Permits 4.3 Other Economic Policy Tools 4.4 The Future of Climate Change Policy
Main Bibliography	Barrage, L. and Hsiang, S. 2024. Handbook of the Economics of Climate Change, 1 (1): 1-428 Desmet, K. and Rossi-Hansberg, E. 2024. “Climate Change Economics over Time and Space”, Annual Review of Economics, 16: 271–304 Folini, D., Friedl, A., Kübler, F. and Scheidegger, S. 2025. “The Climate in Climate Economics”, The Review of Economic Studies, 92 (1): 299–338, Nordhaus, W. 2013. The Climate Casino: Risk, Uncertainty and Economics for a Warming World. New Haven and London: Yale University Press. Nordhaus, W., 2007. “The Stern Review on the Economics of Climate Change” Stern, N. 2007. The Economics of Climate Change: The Stern Review, Cambridge, Cambridge University Press, ISBN: 9780521700801. Tol, Richard S.J._2023. Climate Economics. Economic Analysis of Climate, Climate Change and Climate Policy, Third Edition, UK, Eduard Elgar Publishing: ISBN 9781802205459. A reading list of texts announced in the course scheduling and description, available on the module e-learning platform.
Teaching Methodologies and Assessment Criteria	The learning process combines classroom learning, lectures and debate-oriented and tutorial sessions, with independent study, individually or in group. These activities are supported by e-learning activities and online resources, as well as a close contact with instructor. The lectures offer a structured transmission of micro and macroeconomic analytical tools on environment, framing the subjects addressed with empirical evidence, practical questions and case studies. The discussion-based sessions aim to stimulate students’ capacity to problematise and produce well-informed arguments grounded on selected readings and lecture contents. Readings should be completed before class. Everyone will be expected to be prepared to actively participate in the discussion and to answer questions about the readings or lectures. Tutorial sessions provide support to students’ questions and guidance for the writing assignments. Student’s learning activities also includes office hours, scheduled meeting
Language	Portuguese. Tutorial support is available in English.