ENE423 Economics of the Environment and Climate (E)

• Topics

  ENE423 is is a masters level course in environmental economics, i. e. about how environmentl challenges affect the individuals, firms, and government.

  The course is also emphasizing how communication is an important part of analysis and its use.

  The course has a broad orientation, from ethics to climate change, its use of the concept of sustainability thus covers social as well as economic concepts. It goes beyond introductory environmental economics . Beyond ethics, it covers policy instruments, political economy and game theory. Climate change is special amongst environmental problems in being global, intergenerational, and involving new science.

  A fairly recent development both in practice and in the literature is the role of environmental concerns and risks in finance. 

  The ethical dimension emphasizes that individuals or groups may be poorly represented or endowed, and their potential roles beyond responding to policies and prices.

• Learning outcome

  Knowledge

  Upon successful completion, the student:

  • Can identify ethical dimensions in the problem of environmental policy, climate policy, sustainability and treaties, especially as these relate to distribution, efficiency and decisions.
  • Is able to connect the challenge of managing the environment to characteristics of
    • the physical environment, 
    • the stakeholders, such as individuals, firms and states, their endowments and preferences
    • institutions.
  • Can place the firm, its owners and other stakeholders in their various roles, including from ethical perspectives, relating these also to political economy and institutions.
  • Knows how it is that analytical tools of economics, business and finance can apply to decisions regarding the environment, their shortcomings, and amendments
  • Understands how ethical concerns apply to interpersonal and environmental problems, and how these inform policy and are shaped by policy and institutions.
  • Understands how market failure - such as pollution problems - require different logic, policies and engagement when they are intergenerational, transnational.
  • Knows the basic methodological challenges and methods used in prioritizing environmental problems and protection.
  • Understands the institutions and political economy of environmental issues, including justice and the basic notions of property rights and liability, as well as international treaties.

  Skills

  Upon successful completion, the student can analyze:

  • How the firm and a sector is affected both by environmental / global change and by policies and treaties.
  • How the firm and a sector is likely to engage to influence policy.
  • The strengths and weaknesses of government policy instruments, pollution taxes, regulation, tradable permits, within the framework of a benevolent planner.

  General Competence

  Upon successful completion, the student is able

  • To see in a broader framework how ethics help frame a broader analysis, and place economic analysis and business in a context, aware of its limitations
  • To use these concepts and techniques in an applied setting and to communicate insights and results.
  • To analyze an environmental management issue in the light of stakeholder interests such as the firm and its customers, institutions. 

• Teaching

  Lectures, about 20, including guest lectures. The course is delivered two-way in auditorium and only to a very limited extent - virtually.

• Recommended prerequisites

  Students are recommended to have covered a program equivalent of the Bachelor program at NHH, and in particular to master intermediate economics (microeconomics in particular), and corresponding analytical tools.

  Bachelor course in Introductory Environmental Economics, FOR15 Introduction to Environmental Economics, or equivalent, is advantageous, not required. Both use Kolstad as a background for part of the courses, and in environmental economics, ENE423 emphasizes how the toolbox proves its usefulness and limitations illustrated with examples. 

• Credit reduction due to overlap

  None.

• Compulsory Activity

  1) Students are required to be present on campus, and in at least 60%, or 12 of the 20 auditorium and group sessions.

  2) Two case‑based tasks are included in the course, each consisting of two mandatory auditorium meetings and group sessions (four meetings in total). In the first and third meeting, the lecturer presents a case, and one week later student groups of approximately five students present their solutions.

  In connection with each case discussion, every student must submit a short individual reflection note (approximately 150 words) describing their own contribution. Attendance at all four case auditorium meetings is mandatory.

  3) In addition, each student must complete one individual home assignment (approximately two pages). Submission dates and deadlines are provided in the syllabus on Canvas.

  Compulsory activities from previous semesters are still valid.

• Assessment

  4-hour digital school exam.

• Grading Scale

  A - F

• Computer tools

   None.

• Literature

  • Charles Kolstad, (intermediate), Environmental Economics
  • Scott Barrett's, Environmental Statecraft
  • Journal articles and literature that will be distributed by lecturer.