INSTRUCTORS:
Hans Lööf
Professor of Economics, Royal Institute of Technology, Stockholm, SwedenThis course provides an advanced introduction to the economics of climate change, sustainability, and green transition. It integrates insights from climate science, economic theory, finance, and policy analysis.
The course emphasizes uncertainty, risk, and the role of innovation and policy in achieving a transition toward a low-carbon economy
Module 1: Climate and Economic Foundations
Module 2: Growth, Finance, and Innovation
Module 3: Policy and Global Transition
Assignments & Project Work
Assessment:
• Class Engagement: 10%
• Mid-term Project presentation: 55%
• Final examination (written and closed book exam): 35%
Final Project Assessment Rubric
Total Weight: 55% of the course grade
Components: Presentation: 20% and Report: 35%
1. Presentation (20%)
2. Report (35%)
Required Readings
• Pindyck (2021)
• Hsiang and Kopp (2018)
• Nordhaus (2018)
• H¨ansel (2020)
• Bolton et al. (2022)
• Bolton and Kacperczyk (2023)
• Aldy et al. (2023)
• Selected chapters from Dasgupta (2021)
Additional Readings
• HandbookofESG-investing. Chapter 1: An Overview of ESG Investing, L¨o¨of, Sahamkhadam, Stephan
• Recent journal articles on climate change, innovation, and policy
References
Aldy, J. E., Bolton, P., Halem, Z., and Kacperczyk, M. T. (2023). Behind schedule: The corporate effort to fulfill climate obligations. Journal of Applied Corporate Finance.
Bolton, P., Halem, Z., and Kacperczyk, M. (2022). The financial cost of carbon. Journal of Applied Corporate Finance, 34(2):17–29.
Bolton, P. and Kacperczyk, M. (2023). Global pricing of carbon-transition risk. The Journal of Finance, 78(6):3677–3754.
Dasgupta, P. (2021). The Economics of Biodiversity.
Hsiang, S. and Kopp, R. (2018). An economist’s guide to climate change science. Journal of Economic Perspectives.
H¨ansel, M. e. a. (2020). Climate economics support for the un climate targets. Nature Climate Change.
Nordhaus, W. (2018). Projections and uncertainties about climate change. American Economic Journal: Economic Policy.
Pindyck, R. S. (2021). What we know and don’t know about climate change. Environmental and Energy Policy and the Economy.
