Climate change has become a key concern for policymaking, and in many countries is seen as part of core economic policy. Cutting greenhouse gas emissions will require 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 and adapt to them, presenting a different set of challenges for policy.

This course provides an introduction to the principles and practice of domestic economic policymaking for climate change. It will introduce students  to the major debates and policy instruments, and provide a grounding for analysis of policy options. The course does not aim for exhaustive coverage of climate policy, rather it focuses on principles, key issues and approaches to analysis.

The course covers the theory and practice of carbon pricing, supplementary policies such as technology support, policies in the electricity and land sectors, and the political economy of climate change mitigation policies. The course also looks at adaptation to climate change, looking at policy approaches and design options.

The course has a focus on domestic climate policy issues in developed and developing countries. Case studies (including from Australia, Europe, the United States, China and Indonesia) are used to illuminate theoretical perspectives. Economic concepts will be presented in a way that is accessible to non-economists. Students are encouraged to actively engage and share their own perspectives. The course is a complement to the course CRWF8006 (Climate Change Policy and Economics) which focuses on the international dimensions and some of the fundamental tenets of climate change economics. 

The course will help students to

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

ii) understand the principles and practical application of key policy instruments for climate change;

iii) be able to analyse policy options in in light of economic principles, as well as institutional settings and political economy;

iv) be able to critically assess policy proposals.

 Essays (60%); exam (40%).

One two-hour lecture and one one-hour seminar per week 

CRWF8006 Climate change policy economics

Relevant research reports and journal papers.

Garnaut Climate Change Review and Stern Review of Economics of Climate Change.