Scheda insegnamento

Anno Accademico 2021/2022


The first module will begin with the introduction of of basic economic concepts and then environmental externalities as a source of failure of competitive markets to attain Pareto efficient market solutions. This type of market failure induces environmental regulation, which will be covered next. In this part, environmental policy instruments in theory and practice will be presented. More specifically, it will include: Command and control regulation (limits and standards); Market based instruments (emission taxes, subsidies, tradable emission permits, input taxes, deposit-refund systems); and Voluntary agreements. This part will also cover bargaining solutions as a means of correcting environmental externalities (Coasian bargaining).

Next, the first module will provide an introduction to the economics of climate change and will cover: Historical trends of global average temperature, emissions and concentration of greenhouse gasses (GHGs); The temperature anomaly and polar amplification; Sinks and sources; Carbon budgeting; The coupled system of the economy and climate; A descriptive introduction to Integrated Assessment Models (IAMs); Climate policy which will cover carbon taxes, cap-and-trade and the EU-ETS, carbon capture and storage (CCS), and reducing emissions from deforestation and degradation (REDD); Adaptation to climate change; International agreements; COP21-The Paris Agreement and the more recent COPs.

Module 2

The second module of the course will build on the first module to develop additional and complementary insights on the dynamic links between economic dynamics and environmental sustainability. The module will start with an introduction to the capital approach to sustainable development, which focuses on the conservation of different forms of capital stocks as the basis for sustainability. We will distinguish between weak and strong sustainability, and discuss how they can be measured. This will be followed by a part focusing on the ‘mainstream’ approach to resource and environmental economics, interested in identifying the optimal and efficient use of resources (e.g. Hotelling model) and in combining expansion of income with environmental sustainability (e.g. Environmental Kuznets Curve hypothesis, green growth). The third lecture will instead present the research on resource scarcity and environmental limits to economic growth, with a focus on the debate around absolute and relative decoupling. Finally, the last part of the module will be dedicated to discussing the macro-financial requirements and implications of climate change and the low-carbon transition.


T. Tietenberg and L. Lewis, 2012, Environmental and Natural Resource Economics, 9th Edition, Pearson.

Further readings will be recommended by the two lecturers.

Metodi didattici

Lectures accompanied by slide presentations.

Modalità di verifica e valutazione dell'apprendimento

There will be a final exam consisting of two questions from each module. One question from each module must be answered.

In case online exams will be envisaged by the University of Bologna, the structure of the written exam is the same. The exam will be run through Zoom or MS Teams and Exams Online (EOL). Detailed instructions on how to manage and hand in the online exam are available on the course page on the VIRTUALE platform.

The maximum possible score is 30 cum laude, if all answers are correct, complete and rigorous.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent

Orario di ricevimento

Consulta il sito web di Anastasios Xepapadeas

Consulta il sito web di Emanuele Campiglio