ECON 7221 - The Economics of Climate Change

North Terrace Campus - Summer - 2019

The course provides an understanding of climate change issues, especially the economics of climate change. It provides the tools to assess the relative merits of various climate change policies that are increasingly being put forward by governments and other stakeholders. On completion of this course students should be able to describe and articulate some of the key issues relating to climate change and demonstrate a knowledge of what economics can offer to policies aimed at mitigating its effects. Students should understand the role of economic instruments in designing appropriate climate change policies, the role of the Kyoto Protocol and subsequent meetings, and the issues of climate change from developing country perspectives.

  • General Course Information
    Course Details
    Course Code ECON 7221
    Course The Economics of Climate Change
    Coordinating Unit School of Economics
    Term Summer
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Intensive (over 3 weeks in Summer School, and over 3 weeks in Winter School)
    Available for Study Abroad and Exchange Y
    Assumed Knowledge Introductory Microeconomics & Macroeconomics
    Course Description The course provides an understanding of climate change issues, especially the economics of climate change. It provides the tools to assess the relative merits of various climate change policies that are increasingly being put forward by governments and other stakeholders. On completion of this course students should be able to describe and articulate some of the key issues relating to climate change and demonstrate a knowledge of what economics can offer to policies aimed at mitigating its effects. Students should understand the role of economic instruments in designing appropriate climate change policies, the role of the Kyoto Protocol and subsequent meetings, and the issues of climate change from developing country perspectives.
    Course Staff

    Course Coordinator: Mr Philip Lawn

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.


    This course will be delivered in intensive mode over 2 consecutive weeks (9 days) from 25 January to 5 February 2016 inclusive. In total classes will comprise 1x 5-hour lecture, 8x 3-hour lectures and 4x 1-hour workshops. Students’ oral presentations will take place in the last two 3-hour lectures and 1 hr workshops on the 4th and 5th of February.



  • Learning Outcomes
    Course Learning Outcomes

    On successful completion of this course, students will be able to:

    1. Articulate key issues relating to climate change;

    2. Explain how economics can offer public policies aimed at mitigating the effects of climate change;

    3. Apply economic instruments in designing appropriate climate change policies;

    4. Articulate the role of the Kyoto Protocol and other subsequent Accords;

    5. Explain the role of energy prices in mitigating the effects of climate change;

    6. Undertake independent research in the area of the economics of climate change mitigation.
     

    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    1,2
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    1,2,6
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    1
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    1,2,6
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • Able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    1-6
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
    1-6
  • Learning Resources
    Required Resources
    The following books are required:
    Anthony Owen and Nick Hanley, The Economics of Climate Change, Routledge, London, 2006 (Paperback - ISBN: 978-0-415-40642-0)

    Tol Richard, Climate Economics. Cheltenham and Northampton, 2014 (paperback-ISBN 978 1 78254 592 7).

    Major Reference:
    Lawn Philip, Resolving the Climate Change Crisis, Dordrecht, 2016, (Hard Cover) but online at ISBN 978 94 017 7502 1
    Recommended Resources
    The articles and sites provided below are a good starting point for materials relevant to topics covered in this course.

    Baker, R., Barker, A., Johnston, A. and Kohlhaas, M. 2008, The Stern Review: an assessment of its methodology, Productivity Commission Staff Working Paper, Melbourne, January.

    Australian Greenhouse Office, 2005. Australia’s Fourth National Communication on Climate Change, http://unfccc.int/resource/docs/natc/ausnc4.pdf

    Barrett . S (1998) On the Theory and Diplomacy of Environmental Treaty Making, Environmental and Resource Economics 11: 317-333.

    Baumol, WJ and Oates, WE (1988) The Theory of Environmental Policy, 2nd Edition, Cambridge University Press.

    Fisher BS et al (1996) ‘An Economic Assessment of Policy Instruments for Combating Climate Change’, in Economic and Social Dimensions of Climate Change, Cambridge University Press.

    Garnaut Climate Change Review, Final Report available at http://www.garnautreview.org.au/index.htm

    Lawson, N(2008) An Appeal to Reason, Duckworth Overlook. 

    Lutter, R and Shogren, J (2002) ‘Tradable permit traffics: how local air pollution affects carbon emissions permit trading, Land Economics 78: 159-70.' 

    Productivity Commission (2008), What Role for Policies to Supplement an Emissions Trading Scheme?: Productivity Commission Submission to the Garnaut Climate Change Review, May.

    Productivity Commission (2011), Emission Reduction Policies and Carbon Prices in Key Economies, Commissioned Study, May. www.pc.gov.au

    The Climate Commission (2011), The Critical Decade, Report Prepared by the Climate Commission tasked by the Australian Government to report on policies to mitigate climate change. http://climatecommission.gov.au/topics/the-critical-decade/

    The Garnaut Climate Change Review: Garnaut Review 2011 - http://www.garnautreview.org.au/update-2011/garnaut-review-2011.html

    United Nations, 1992. United Nations Framework Convention on Climate Change, http://unfccc.int/resource/docs/convkp/conveng.pdf

    United Nations, 1997. Kyoto Protocol to the United Nations Framework Convention on Climate Change, http://unfccc.int/resource/docs/convkp/kpeng.pdf

    World Bank, World Development Report (2010), Development and Climate Change – from the World Bank’s official site – www.worldbank.org

    Other material will be handed out at various times.

    Online Learning

    www.http://unfccc.int/meetings- Official site of the United Nations Climate Change Conference in Copenhagen, 5 to 18 December 2009

    www.theworldbank.org - The World Bank.

    http://unfccc.int/2860.php - UN Framework Convention on Climate Change.

    www.dfat.gov.au – The Australian Department of Foreign Affairs and Trade.

    www.wri.org – World Resources Institute.

    http://www.environment.gov.au – The Australian Department of Environment.

    www.environment.sa.gov.au – South Australian Department of Water and Natural Resources.

    www.abares.gov.au – Australian Bureau of Agricultural and Resource Economics and Sciences.

    http://bravenewclimate.com – Professor Barry Brook’s website.

  • Learning & Teaching Activities
    Learning & Teaching Modes
    Teaching and Learning activities are closely aligned with the Course Learning Outcomes outlined above.  While the primary teaching modes are through lectures and workshops, learning is expected to take place through writing a comprehensive report that ideally is an equivalent quality to a policy paper or a consultant’s report prepared for clients; through preparing and participating in an oral presentation; through class discussion and through writing under pressure (final exam). All of these modes will not only lead to achieving the learning outcomes but will also prepare students for the rigours of the workplace.

    This course aims to enhance students’ independent learning, research skills and self-directed study, qualities you will need in abundance if you are seeking a career in policymaking, government, NGOs or in international organisations or consultancies. In particular, the course will enhance students’ ability to distil and synthetise information, write succinctly and verbally present facts and findings clearly. The course is thus structured around three elements of assessment – an individual or group oral presentation (20%), a 3,500 word paper on a relevant topic that can be done either individually or as part of a group (30%) and a 3-hour closed book examination (50%). Under no circumstances can groups for either the oral presentation or the written assignment exceed 3 people. Please also note you can work in groups for only one of the modes of assessment – the oral presentation or the written assignment. That is to say, if you work in a group in one mode, the other assessment mode must be done individually. The School of Economics has a policy that does not allow students’ group assessments to be weighted at MORE THAN 30%. 

    While the main text book, ‘The Economics of Climate Change’ by Owen and Hanley (2004) and other prescribed reading materials forms the ‘core reading’ of the course, students will be expected to go beyond these if they are to get high grades (that is Distinctions or Higher Distinctions). Further, as students will be working independently, as well as in small groups, the weekly lecture topics and discussion questions should be seen as building blocks and additional knowledge based on students’ own independent research should be added to this.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.




    The course requires independent and group learning if it is to be completed successfully. It is anticipated that students will engage in study outside of class time (either individually or in groups) for at least 15 hours a week for the duration of the course, since it is delivered in intensive mode.
    Learning Activities Summary

    The course will be held from Monday 25 January to Friday 5 February 2016 inclusive. Lectures will be held from 9 am to 12 pm from Monday to Friday and Workshops will be held on Wednesdays, Thursdays and Fridays from 12-1 pm. 
    Tuesday at a venue to be advised.
     

     
     


    Specific Course Requirements
    There are no specific course requirements
    Small Group Discovery Experience
    Not applicable
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Particular skills to be developed through undertaking this course include:
    • learning independently and in groups;
    • self-directed research (through the written project and individual/group presentations);
    • working collaboratively in small groups;
    • using the World Wide Web and government agencies to seek relevant information;
    • problem solving; and
    • knowledge building in the field of climate change economics.
    Assessment Task Due Date/ Week Weighting Length Related Learning Outcome
    Oral Presentation Week TBA 20% 15-20 minute presentation (individual or group) TBA
    Problem-Based Assignment
    (individual or group)
    Week TBA 30% 3,500 words (individual or group) TBA
    Final Exam Weeks TBA 50% 3 hours TBA
    Total 100%
    Assessment Related Requirements
    The University’s policy on Assessment for Coursework Programs is based on the following five principles: 1) assessment must encourage and reinforce learning; 2) assessment must measure achievement of the stated learning objectives; 3) assessment must enable robust and fair judgements about student performance; 4) assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned; and 5) assessment must maintain academic standards (see: http://www.adelaide.edu.au/policies/700/ )

    This course’s assessment encourages and reinforces learning and measures achievement of the stated learning outcomes by evaluating (a) class discussion (clarifying and initiating ideas); (b) group cooperation and learning (through the oral presentation and written paper); critical thinking and analysis (written assignment) and working under pressure (exam). The relative weights reflect the importance of each of the assessment modes. The assessment practices are fair and equitable as students have the choice of either working individually or in small groups.
    Assessment Detail
    Oral Presentation (20%)
    An important part of the assessment will include the individual or group (two or three  people)
    presentation by students on the topic of their choice; this presentation will account for 20% of the total grade. Students can choose their own topics that are based on the lectures, though these are subject to approval by the lecturer. Otherwise the presentation topics are identical to the  four topics that are set for the problem based written assignment, representing a good opportunity for students to orally discuss the issues and then write them up for the 30% written assignment. Students can do the same topic for both the presentation and written assignment or they can do a separate topic for each.
    Again, if you are working in a group for the presentation, be aware that you cannot also work in a group for the written assignment. Students MUST nominate their topics for both the presentation and the written assignment shortly after commencement of the course.

    Problem Based Written Assignment (30%)
    Four questions are set, of which you are to choose one, which will be based on your individual and/or group research. Note, if you choose to work in group for the oral presentation, you cannot work in a group for the written assignment and that groups cannot exceed three people.

    The written assignment requires you to:
    Submit a paper (in the form of a report) of 3,500 words (maximum).

    As this is to be in the form of a formal report submitted to decision makers, please follow the format of a formal submission; that is, you are required to follow a logical structure that includes an introduction, a review of the literature, the main issues, discussion (including any analysis), key findings and recommendations. You are also to include a one or two paragraph ‘Executive Summary’ highlighting your key points, findings and recommendations. Note: neither the Executive Summary nor the Reference List will be included in the word count.

    You MUST follow the above format; students that do not will be marked down.

    Assessment criteria for the paper will include how professionally written the report is (that is, it should be - free from error, logical, provide evidence of wide reading/research, accurate, provide evidence of good summation skills and demonstrate good quality English writing). Additional criteria will include how well the paper is researched; how well integrated are the appropriate economic concepts and models; how clearly and concisely the relevant issues and problems are discussed and the quality of your findings and recommendations.

    Final Examination (50%)
    The final examination will comprise 5-6 essay-type questions based entirely on the topics covered in lectures, of which you are to answer 4 questions. One question will be compulsory. Each question carries an equal weight of 25%.

    You will be advised when and where the final examination will be held.
    Submission
    Please note the date for submission of your written assignment to be advised. Penalties for late submission will apply, with 5% deducted for each day overdue. Submissions are to be placed in the assignment drop box on the ground floor, University of Adelaide, 10 Pulteney St, (Nexus 10 building), or alternatively email your written assignment to the lecturer.
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

    Additional Assessment
    If a student receives 45-49 for their final mark for the course they will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.
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    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

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