Readings (indicative for now)

These readings give an idea of the material to be covered in the course. All of them will not
be used and there may be some additions/deletions. In the final version of the reading list
those marked as [B] are background reading. Soft copies of almost all readings are available
and will be hyperlinked.

1a. Climate Science (and rudiments of climate damage)

An understanding of concepts such as energy balance, radiative forcing, climate sensitivity.
1. Fitzroy and Papyrakis (2016). An Introduction to Climate Change Economics and
Policy Chapter 2 -easy read discusses latest IPCC AR5, other readings only discuss
AR4.
2. Hassler et al. (2016) Sections 1-3 (includes discussion on climate damages-
important).
3. Notes on basic climate science.
4. http://www.ipcc.ch/pdf/assessment-report/ar5/wg1/WG1AR5_TS_FINAL.pdf
Read only TFE.5 pp.70-72 (Irreversibility and Abrupt Change) and TFE.6 pp. 82-85
(Climate Sensitivity and Feedbacks).
5. http://www.ipcc.ch/report/ar5/wg1/docs/WG1AR5_FAQbrochure_FINAL.pdf
6. IPCC AR5 WGI SPM: http://www.ipcc.ch/pdf/assessment-
report/ar5/wg1/WG1AR5_SPM_FINAL.pdf

1b. Main issues in the economics of climate change

Review of Environmental
Economics and Policy 7(2): 219-237.

Frank J. Convery and Gernot Wagner (2015). Reflections Managing Uncertain Climates:
Some Guidance for Policy Makers and Review of Environmental Economics
and Policy 9 (2): 304-320.

Heal and Millner (2013) REEP.

Wagner and Zeckhauser (2012). Climatic Change.

Ackerman, Frank and E. Stanton (2013). Climate Economics: State of the Art. Routledge.

2. International response to climate change

To be assigned (self-reading)

3. Integrated Assessment Models (IAMs) and the value of carbon

3a. IAMs

Bretschger, L., & Karydas, C. (2019). Economics of climate change: introducing the basic
climate economic (BCE) model. Environment & Development Economics, 24(6), 560-582.

Nordhaus, W. (2019). Climate change: The ultimate challenge for economics. American
Economic Review,
Revie 109(6), 1991-2014. [Nobel Prize Lecture December 2018]

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Nordhaus, W. (2013). Integrated economic and climate modeling. In Handbook of
Computable General Equilibrium Modeling
M (Vol. 1, pp. 1069-1131). Elsevier.

Nordhaus, William D. (2008). A Question of Balance. Yale University Press [see equations
on p. 206-208]

Nordhaus, William D. (2010 -Copenhagen

environment PNAS (Proceedings of National Academy of Sciences), 107(26):11721-
11726, June 29 (and Supporting Information).

Nordhaus and Yang (AER 1996)

Gupta, S. (2020). Has economics caught up with climate science?. Ecology, Economy and
Society the INSEE Journal, 3(1), 11-30.

Perman et al. 4th edition (2011) Chapter 9 (pp. 329-333) and Chapter 16 pp. 545-551 for
overview of DICE model. Perman 3rd edition (2003) Box 16.1 and 16.2 for overview of
RICE model.

Pindyck Journal of
Economic Literature 51(3):860 872.

http://web.mit.edu/rpindyck/www/Papers/PindyckClimateModels2015.pdf

Ackerman, Frank et al. ions of integrated assessment models of climate

Climatic Change.

Ackerman, Frank et al.

http://www.pewclimate.org/events/2009/benefitsworkshop.

3b. Social Cost of Carbon

Nordhaus (JAERE 2014)

Nordhaus (PNAS 2016)+SI
Bijgaart et al. (JEEM 2016)
J.C.J.M. van den Bergh and Botzen (EE 2015)

US Working Group (2010). Interagency Working Group on Social Cost of Carbon, United

http://www.epa.gov/oms/climate/regulations/scc-tsd.pdf

4. The choice of discount rate for climate change policy

[B] Ramsey, Frank P. (1928). "A Mathematical Theory of Saving," Economic Journal
38(152): 543 559.

[B] Cass, David (1965). "Optimum Growth in an Aggregative Model of Capital

Accumulation." Review of Economic Studies 32(3): 233 240.

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[B] Koopmans, T. C. (1965). "On the Concept of Optimal Economic Growth." The Economic
Approach to Development Planning. Chicago: Rand McNally. pp. 225 287.

Arrow, Kenneth J. et al. (1995). Intertemporal equity, discounting, and economic

efficiency in Climate Change 1995: Economic and Social Dimensions of Climate
Change, Contribution of Working Group III to the Second Assessment Report of the
Intergovernmental Panel on Climate Change, Cambridge University Press, pp. 125 44.

Frederick, S.,
Journal of Economic Literature, XL vol. 40(351-401).

5. non-linearities in the climate system and their role in formulating

climate policy

John A. Robb (2008). Fat tail distribution; financial fat tail distribution.

REEP Symposium on (also see abstracts):

-Tailed Uncertainty in the Economics of Catastrophic Climate Change.

Journal of Public
Economic Theory.

Weitzman REStud

6. Mitigation (emissions trading and carbon taxes)

Resource and Energy Economics 21 (3 4): 255 87.

Newell and Pizer JEEM (2003)

Bertram, I. Geoffrey (1996). Tradable Emission Quotas, Technical Progress and Climate
, Environment and Development Economics 1(4), 465-87.

Scheme: Origins, Allocation, and Ea Review of Environmental Economics and

Policy (REEP) 1(1): 66-87.

REEP 1(1): 88-111.

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 REEP 1(1): 112-133.

an Negotiating a Uniform Carbon Price Help to Internalize the Global

Warming Exter

7. Impacts and Adaptation

Environment and Development Economics.

Deschênes, Olivier, and Michael Greenstone (2007), "The Economic Impacts of Climate
Change: Evidence from Agricultural Output and Random Fluctuations in Weather",
American Economic Review, 97(1): 354-385

Gupta, Shreekant, Partha Sen and Suchita Srivasan (2014). Impact of Climate Change on the
Climate Change Economics 5(2).

Special Issue on daptation Climate Change

Economics, 3(2) May 2012.

8. Green paradox and carbon leakage

Eichner, Thomas and R

International Economic Review, 52(3): 767-805.

Review of Environmental Economics and Policy, 9(2): 239-245.

Review of
Environmental Economics and Policy, 9(2): 246-265.

Lo
Review of Environmental Economics and Policy, 9(2): 266-284.

Ploeg, Frederick Van Der and Cees Withagen. 2015. Global warming and the Green Paradox:
a review Review of Environmental Economics and
Policy, 9(2): 285-303.

9. Environmental Treaties

Self-enforcing international environmental agreements Oxford

Economic Papers (46): 878 894.

Barrett, Scott (2003). Environment and Statecraft: The Strategy of Environmental Treaty-
Making. Oxford: Oxford University Press.

Chander, P. and Tulkens, H. (1995). -theoretical solution for the design of

cooperative agreements on trans- International Tax and Public Finance,
(2): 279 294.

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 American Economic Review.