In case of conflicting information consider the Sisu/Courses/Moodle pages the primary source of information.

The course provides a rigorous survey on the classical theory of static externality. The course starts with efficiency and distributional effects of environmental policies. The second part of the course analyzes international trade and the differences between consumption- and production-based environmental policies. The third part then focuses on the choice between climate policy instruments under imperfect competition, voluntary emission reductions, linking environmental regulations between countries and instrument choice under uncertainty. Throughout the course we will link the theoretical models to real-world examples and empirical studies.

  • Completion method: contact teaching
  • Schedule: can be found in Courses Page and Sisu
  • Study materials: can be found in Moodle
    • Tips for enrolling in a Moodle course area can be found here

Please register for the course in the UH Sisu with your UH username, further instructions can be found here.

    • Code: no equivalent code
    • Target groups: MSc (not suitable for PhD students)
    • Credit points: 5
    • Credit transfer: apply for inclusion in Sisu
    • Code: 26071
    • Target groups: MSc (not suitable for PhD students)
    • Credit points: 5
    • Credit transfer: apply for substitution in Sisu
    • Code: AGERE-E01

    • Target groups: MSc students (not suitable for PhD students)

    • Credit points: 5

    • Not suitable for PhD students

After completing the course, students are able to derive rigorously the key results of static externality and the optimal use of policy instruments. The students will understand various incentive margins that affect behavior of firms under market-based environmental regulation and how policies affects them. The students will learn the tools to set-up and solve static optimization problems, learn how to solve them numerically and become familiar with empirical analyses of environmental problems.