Climate change has become a key concern for policymaking in many countries. The substantial cuts in greenhouse gas emissions envisaged will require far-reaching changes in technologies, production and consumption. To achieve climate change mitigation at minimal economic cost, and with acceptable changes to wealth distribution, requires well designed economic policies. Meanwhile, communities and businesses will need to prepare for impacts from climate change, which presents a different set of challenges for policy.

This course provides an introduction to the principles and practice of domestic economic policymaking for climate change, and examines a range of policy instruments. On climate change mitigation, it examines the foundations and practice of carbon pricing, and supplementary policies such as support for low-emissions technology development, and targeted policies for renewable electricity supply, agriculture and forestry. The course also looks at the political economy of climate policy decisions, and draws comparisons between climate change and other areas of public policy. On adaptation, it investigates in what areas climate risk management requires new policies, can be mainstreamed into existing frameworks, or can occur without policy intervention.

Case studies of climate policies, from Australia and other developed and developing countries, form an important part of the course. Economic concepts that form part of the course will be presented in a way that does not require prior economics studies. Students are encouraged to actively engage and share their own perspectives.  

The course complements CRWF8006 "Climate change policy economics" which focuses on the international aspects of climate change policy.

The lecturer is Dr Frank Jotzo. He has worked in research and analysis of climate change economics and policy since 1998, was economic advisor to the Garnaut Climate Change Review, and is engaged in research and the public policy debate on climate policy in Australia and countries in the Asia-Pacific. 

Students will:

i) become familiar with the main current debates on domestic climate change economics and policy;

ii) understand the main instruments for climate change policy;

iii) understand key economic principles and broad lines of political economy for climate policy ;

iv) be able to compare and critique competing policy options. 

Essays (60%); exam (40%).

One two-hour lecture and one one-hour seminar per week, linked to online forum/resources

CRWF8006 Climate change policy economics

To be announced

Relevant research reports and journal papers.

Garnaut Climate Change Review Chapters 13-16.