Economic Instruments of Climate Policy

What it is about

You learn economic fundamentals for analyzing and applying climate-policy instruments. The focus is on market failure, externalities, and the comparison of market-based instruments (e.g., carbon tax, emissions trading) with regulatory approaches. In the end you can assess cost–benefit and welfare aspects, estimate distribution and implementation issues, and critically evaluate policy measures in an international context.

What you will be able to do

• explain and apply central economic concepts for analyzing policy instruments
• critically evaluate cost–benefit and welfare aspects of environmental and climate policy
• identify typical political-economic framework conditions and interests in the political process
• analyze and discuss distribution effects of different climate-economic instruments
• critically assess and reflect on policy measures in the context of real climate policy

What the module consists of

• VorlesungDelivery of content through structured lectures in block format

Teaching method

• strukturierte Vorträgefor conveying the central concepts
• kurze interaktive Elemente (z. B. Verständnisfragen, Diskussion ausgewählter Beispiele)to deepen understanding and apply to examples