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- Code:
- AGERE-E01
- Field:
- Environmental Economics
- Targets:
- Master’s students Research Master's students
- Organiser:
- University of Helsinki - Environmental Economics
- Instructor:
- Matti Laukkanen
- Period:
- Period 2
- Format:
- Lecture
- Method:
- Contact teaching
- Venue:
- Viikki campus
- Enrollment:
In case of conflicting information consider the Sisu/Course/Moodle pages the primary source of information.
Aalto and Hanken economics students can enroll in their home university’s SISU! Further instructions can be found on the How to enroll page, also for other students.
Before taking and completing the course make sure that the credits can be counted towards your degree at your home university by checking which courses are included in your curriculum or by contacting your home university’s student/learning services.
Content
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.
Learning outcomes
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.