economics of climate change

introduction

This is a website that houses notes for an undergraduate course on the economics of climate change. This website mimics the course structure of Casey Wichman’s ECON-4210 course developed in the School of Economics at Georgia Tech. For a recent syllabus, see here.

This course explores the economic causes and consequences of climate change—the “mother of all externalities”—and potential solutions. Misguided market forces, via unpriced and unregulated greenhouse gas (GHG) emissions, contribute to global warming. Because GHG emissions stem from economic decisions we make every day—from driving to work to powering our computers to eating a hamburger—the economic impact of policies aimed at reducing GHG emissions are pervasive. This course uses the tools of economics to understand the origins of climate change; to explore the effects of climate on different facets of the economy now and in the future; and to evaluate the effectiveness, costs, and benefits of policies designed to reduce climate change. Particular focus is given to:

  • Understanding the methods used to measure and value damages from climate change
  • Analyzing the pros and cons of market-based policies designed to reduce GHG emissions
  • Investigating the role of adaptation and innovation as potential climate solutions
  • Evaluating the equity implications of climate impacts and climate policy

Students will acquire a broad understanding of the costs of unchecked climate change and an ability to evaluate current policy debates through an economic lens.

disclaimer

This website is a living work-in-progress designed as a course supplement with my own students as the intended audience. As a result, these notes are necessarily incomplete as they only complement lectures. I am updating content and half-thoughts sporadically throughout the semester. There are probably factual errors and all content is subject to change. Moreover, I am using this project as a tool to learn how to mess around with Quarto websites, so you should probably anticipate technical issues. Buyer beware.

However, the longer-run goal of these course notes is to fill a gap for accessible, undergraduate-level resources on the Economics of Climate Change. Instructors should feel free to use these notes if they so desire.

If you have suggestions, concerns, and/or words of anger or affirmation (or both), feel free to reach out to me at wichman@gatech.edu.

course overview

part 1 – causes and consequences of climate change

  1. what is climate change?
  2. how are the climate and the economy linked?
  3. why is climate change an economic problem?
  4. how do we measure the costs and benefits of climate change?
  5. (how much) should i care about my grandchildren’s future?
  6. can we put a price on climate impacts?
  7. who bears the burden of climate impacts?

part 2 – economic approaches to solving climate change (coming soon)

  1. how would an economist solve climate change?
  2. can’t we just live with climate change?
  3. who pays for a carbon tax?
  4. does behavior undermine climate policy?
  5. what don’t we know about climate change?
  6. can we address climate change on our own?
  7. can we fix climate change with this one weird trick?
  8. is changing our own behavior the solution?