სსიპ-ივანე ჯავახიშვილის სახელობის თბილისის სახელმწიფო უნივერსიტეტი
Teaching Course Syllabus
Course title
(Georgian/English)
Author(s) of the course
Lecturer(s) of the course
Code of the Course
Status of the course
(ECTS) and hours
Prerequisites
Goal of the teaching course
Learning Outcomes according
to the qualification chart
Climate Change Economics 2
კლიმატის ცვლილების ეკონომიკა 2
Michael Luken, Invited Lecturer
Michael Luken, Invited Lecturer
Contact Information:
E-mail: michael.luken@iset.ge, Room 2.7
Office hours: Office hours are determined in coordination with the Academic
Affairs Department, with a schedule agreed in advance with the lecturer, the
exact schedule will be available on moodle.
1. International School of Economics at TSU (ISET)
2. Level: Bachelor’s Degree
3. Elective
5 Credit - 125 hours:
Interactive work (lecture/seminar/computer lab session) – 15 hours
Student’s individual work – 110 hours, among them:
*preparation for the midterm exam - 30 hours
*preparation for project presentation – 30 hours
* preparation for lecture – 15 hours
*Consultations – 5 hours
*Preparation for the final exam – 30 hours.
Climate Change Economics 1
The purpose of this course is to develop skills in the model-based analysis of
climate and energy policy instruments, their economic costs and benefits, and
the evaluation of climate policies and measures in terms of their economic,
social and environmental implications.
The course introduces the three classes of Computable General Equillibrium
(CGE) Models, Energy Sytem Models, and Intertemporal Optimization Models.
The teaching follows a reasonable balancing between formal/mathematical
derivation of the models and an intuitive approach.
Knowledge and understanding:
The students can
 understand fundamental concepts and models of environmental
economics in their application to climate change,
 understand and analyze policy instruments in the context of climate
change,
 know criteria for policy instruments in the context of climate change
evaluation.
Skill:
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 სსიპ-ივანე ჯავახიშვილის სახელობის თბილისის სახელმწიფო უნივერსიტეტი

The students can

 apply quantitative economic methods and techniques (especially
modeling, model-based analysis, programming, data analysis) in the
analysis and evaluation of policies related to climate change mitigation
and adaptation,
apply economic reasoning in debates about national and global climate/energy
policy and use creative and critical thinking in discussion, presentation, and
writing.
Course Content Fundamental concepts of Climate Economics are repeated in the first class of
the course. In the following seven classes, the following three model classes are
introduced: Computable General Equilibrium models, intertemporal growth
models and Energy System models.
The remaining weeks of the course are devoted to applications on current
research topics and political debates, such as path dependencies and path
decisions under uncertainty, or the role of international trade in fossil energy
carriers.
Teaching and learning The following methods are used during the course:
methods
LECTURES
The students will have weekly lectures (two 45 min lectures per week).

QUIZZES
Quizzes will be given periodically during the semester. There will be no
makeup quizzes given. The instructor reserves the right to administer surprise
quizzes throughout the semester, if deemed necessary.

HOMEWORK
Students must complete all homework before taking the quiz and/or exam over
the material. No homework will be accepted after the final due date listed.
Completion and comprehension of the homework is critical for success in this
course.

DISCUSSION & PARTICIPATION

Periodic discussions will center on a case or issue covered in class or in
homework.

MIDTERM EXAMS
Midterm exams will cover multiple chapters and will include questions based
on understanding concepts and solving problems.

PRESENTATION
Students will work in groups on an assigned research task and present results
in class. The groups work in a self-organized way, but the instructor is
available for consultation on request.

FINAL EXAMINATION
The final exam is cumulative (covering Chapters 1-13). All students must take
the final exam as per the university schedule.

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 სსიპ-ივანე ჯავახიშვილის სახელობის თბილისის სახელმწიფო უნივერსიტეტი

The most important requirements for this course are thorough preparation and
analysis of the assigned problems, cases and reading materials, and active
participation in class.

The assignments are meant to be a learning tool and a way to gauge your level
of understanding. You are encouraged to work through homework problems
and to prepare for cases in groups. However, each student is individually
responsible for turning in each
assignment and for answering case-related questions in class.
Assessment and grading Students are evaluated based on a 100-point system:

Weekly activity - 30 points

*The weekly activity involves home assignment (10 points), 2 quizzes (each 5
points – in total 10 points), project presentation (10 points)

Evaluation criteria:

1. 8-10 points. The home assignment is complete.

2. 4-7 points - The home assignment is complete but briefly;

3. 1-3 points - The home assignment is incomplete. Only a separate

fragment of the material relevant to the question is presented.

4. 0 points - The home assignment does not correspond to the question

or is not given at all.

*Quiz – Each rated at 5 points, in total 10 points.

1. 4 -5 points. The answer is complete. The issue is conveyed accurately and

perfectly. Thoroughly owns the required and additional literature, has no
errors. The problem is solved correctly, the reasoning is at a high level;
2. 2-3 points - The answer is complete, with minor flaws. No significant errors,
the student is well versed in the material, possesses the required literature.
3. 0-1 points - the answer is incomplete, the terminology is wrong, the student
is familiar with the materials, but there are errors. The reasoning is
fragmentary.

*The presentation:

1. 8-10 points. The presentation is complete.

2. 4-7 points - the presentation is complete but briefly;

3. 1-3 points - The presentation is incomplete. Only a separate fragment

of the material relevant to the question is presented.

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სსიპ-ივანე ჯავახიშვილის სახელობის თბილისის სახელმწიფო უნივერსიტეტი

4. 0 points - The presentation does not correspond to the question or is

not given at all.

Midterm exam - 30 points

The midterm exam is a written test format and includes 6 open questions. Each
is rated with a maximum of 5 points.

Evaluation criteria:
1. 4,1–5 points - The answer is complete, delivered accurately and perfectly,
special terminology is protected, the student completely knows the obligatory
and additional literature, has no mistakes. Discussing is at a high level.
2. 3,1–4 points - The answer is complete but concise, the terminology is used
correctly, there are no significant mistakes, the student completely knows the
program materials. Knows obligatory literature. The reasoning is good.
3. 2,1–3 points - the answer is incomplete, special terminology is insufficient,
the student knows the program material, but there are some errors. The
substantiation  is fragmentary.
4. 1,1–2 points - The answer is incomplete. Errors were made in the
terminology, the relevant material on the issue was covered partially, the
student could not fully knows the literature. Significant errors were noted.
5. 0.1–1 points - The answer is incomplete. Special terminology is not used.
The answer is fundamentally incorrect, only certain fragments of the question
are presented.
6. 0 points - the answer does not match the question, or does not exist.

Final exam – 40 points

A student must have accumulated at least 11 points in order to take the final
exam.
The final exam is rated at 40 points. It consists of four 10-point open questions.

Evaluation criteria:
1. 9-10 points - The answer is complete, delivered accurately and perfectly,
special terminology is protected, the student completely knows the obligatory
and additional literature, has no mistakes. Analyzing is as fundamentally.
2. 7-8 points: The answer is complete, accurately delivered, special
terminology is preserved, there are no essential errors, the student is well
prepared and knows the obligatory literature of the course.
3. 5-6 points: The answer is incomplete, it is presented satisfactorily, the
special terminology is wrong, the student knows the program material.
4. 3-4 points: The answer is incomplete, the terminology is not preserved, the
relevant material of the question is presented particularly, the basic material is
not sufficiently. Substantial errors are presented.
5 .1-2 Points: The answer is incomplete, special terminology is either incorrect
or does not meet the requirements. The answer is essentially incorrect, only
separate fragments of the relevant questions of the material are given.
6. 0 points: The answer does not match the task or does not exist.

The final exam is considered as passed if the student received at least 20 points
on the exam.
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               Evaluation
Letter Grade
Scores         
91-100 Excellent A
81-90 Very good B
71-80 Good C
61-70 Satisfactory D
51-60 Sufficient E
41-50 Marginal Fail FX
0- 40 Fail F
In case of FX assessment student is allowed to take an additional exam. In case
of FX assessment in educational program component the institution of higher
education is obliged to organize final exam at least in 5 days after the
announcement of the results of final exam. Given obligation is not valid for
the dissertation, graduate project/work, creative/performance work or other
scientific project/work. The points received at final assessment is not added to
the additional exam assessment received by student. Assessment received at
additional exam is final assessment and is depicted in total assessment of. In
case of receiving 0-50 points in total assessment of educational component
considering additional exam assessment student assessment is finalized as F-0
point. In case of F-assessment student must retake the credit.
Compulsory readings Bergman, L. (2005): CGE Modeling of Environmental Policy and Resource
Management, Handbook of Environmental Economics, 3, 1273-1306.
Additional readings Burfisher, M. E. (2021). Introduction to computable general equilibrium
models. Cambridge University Press.
Hosoe, N., Gasawa, K., & Hashimoto, H. (2010). Textbook of computable
general equilibrium modeling: programming and simulations. Springer.
Additional information Additional literatures are available on Moodle/learning management system

Academic honesty Academic honesty is defined by the Code of Ethics and Conducts of
ISET/TSU https://iset.tsu.ge/images/Documents/Code-of-Ethics-and-
Conduct.pdf

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 სსიპ-ივანე ჯავახიშვილის სახელობის თბილისის სახელმწიფო უნივერსიტეტი
Topic (lecture/working group/ practical work,
№ Laboratory work and etc.)
1 Thematic introduction, repetition of fundamental
concepts of Climate Economics
2 Computable General Equilibrium (CGE) models:
basics
3 CGE models: basics (cont.), greenhouse gas emission
externality
4 CGE models: analyzing the effects of policy
instruments
5 CGE models: analyzing the effects of climate impacts
and adaptation
6 Intertemporal optimization models
7 Energy System Models
8 Energy System Models (Continue)
9 Comparison of the model classes
10 Applications: Technological path dependencies and
path decisions under uncertainty
11 Applications: International trade, the role of fossil
energy carrier exporters in climate policy
12 Applications: Project presentations (1)
13 Applications: Project presentations (2)
Appendix
Materials (including the page numbers)
Rezai, A. et al., (2012). Global Warming and
Economic Externalities. Economic Theory,
49, 2, 329-351.
Burfisher, M. E. (2021). Introduction to
computable general equilibrium models.
Cambridge University Press.
Hosoe, N., Gasawa, K., & Hashimoto, H.
(2010). Textbook of computable general
equilibrium modeling: programming and
simulations. Springer.
(page numbers will be announced at the
beginning of the course.)
Lecture Notes (on Moodle)
Lecture Notes (on Moodle)
Lecture Notes (on Moodle)
Heal, G. (2005): Intertemporal Welfare
Economics and the Environment, Handbook
of Environmental Economics, 3, 1105-1145.
Bhattacharyya, S. C., Timilsina, G. R. (2010):
A review of energy system models.
International Journal of Energy Sector
Management (2010), 4, 4, 494-518.
Lecture Notes (on Moodle)
Edenhofer, O. et al. (2010): The economics of
low stabilization: model comparison of
mitigation strategies and costs. The Energy
Journal, 31 (Special Issue).
Held, H. et al. (2009): Efficient climate
policies under technology and climate
uncertainty. Energy Economics, 31, S50-S61.
Bauer, N. et al. (2016): Global fossil energy
markets and climate change mitigation–an
analysis with REMIND. Climatic change, 136,
1, 69-82.
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14 Summary and conclusions

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15 Consultation in preparation for the final exam

-

16-18 Sessional period

Final Exam -

Note: The midterm exam will be held in the week of 8th, 9th
The final exam will be held in the weeks of 16th-18th
The make-up exam will be held in the week of 19th