This video lecture by William Nordhaus on the economics of climate change. This is a comprehensive video on the impacts of climate change and its effect on the economy, along with a focus on economic policy for climate mitigation and adaptation.
Students will be introduced to the economics of climate change. They will learn about carbon pricing and its alternatives, use of subsidies, cap & trade, and taxation as potential climate solutions. Students will also be able to establish a link between economics and public policies and learn to integrate human economy and climate change.
Use this tool to help your students find answers to:
What is the economics of climate change?
What is carbon pricing?
How can economic policies help mitigate climate change?
What is the cost of policy uncertainty on climate change?
About the Tool
Tool Name
William Nordhaus: The Economics of Climate Change
Discipline
Economics
Topic(s) in Discipline
Economics of Climate Change, Climate Economics, Demand and Supply, Carbon Pricing, Carbon Tax, Cap and Trade, Cost Benefit Analysis
Climate Topic
Energy, Economics and Climate Change; Policies, Politics and Environmental Governance
As a teacher of Economics, this podcast can teach your students about Environmental Resources and Energy Economics, and use of carbon tax policy as a possible economic solution to climate change.
This audio will help students understand the relationship between economics and climate change. Additionally, they will learn about carbon pricing theory and its effectiveness. They will be exposed to initiatives such as the Portfolio Decarbonization Coalition and will learn about the dynamics between technology, economics and politics.
Use this tool to help your students find answers to:
What is Environmental Economics?
How has economics played a role in creating the current climate change crisis?
What is carbon pricing and how does it work?
What is ‘dirty’ infrastructure and how does it impact climate change?
A reading from the ‘Stern Review: The Economics of Climate Change’ by economist Nicholas Stern for the Government of the United Kingdom which contains predictions on mortality, ecosystems and income levels. This reading includes results of their modelling that states that climate change will cause an average of 5% reduction in the global per capita consumption over the next 2 centuries, with an addition of 145 – 220 million people falling below poverty line in South Asian and sub-Saharan Africa by 2100, and an expected increase in child mortality to 165,000 – 250,000 children per year. The reading is subdivided into four chapters, as follows:
How climate change will affect people around the world: This chapter draws correlations between climate change and potential implications for access to food, water stress, health and well-being, land and the environment. It gives a detailed analysis of global warming implications from 1ºC rise up to temperature change of 5ºC and above. [pp 55 – 91 (as per table of contents) or pp 100 – 136 (as per scrolling)]
Implications of climate change for development: This chapter looks at developing countries and their vulnerability to climate change due to their dependence on climate sensitive sectors such as agriculture. Apart from food insecurity and damage to the healthcare systems, there will be mass migrations and conflict which will hamper growth and development. [pp 92 – 121 (as per table of contents) or pp 137 – 166 (as per scrolling)]
Costs of climate change in developed countries: This chapter looks at the impacts of climate change on the developed countries and explains how for moderate amounts of warming some higher latitude countries will face short-term benefits due to rise in agriculture yields, lower winter mortality, lower heating requirements and possible boosts in tourism. However, they will face disastrous impacts due to climate shocks at higher temperatures. [pp 122 – 142 (as per table of contents) or pp 167 – 187 (as per scrolling)]
Economic modelling of climate change impacts: This chapter details the modelling work conducted for estimating the monetary impact of climate change by using an Integrated Assessment Model with a temperature rise of 2-3ºC as the starting point. [pp 143 – 167 (as per table of contents) or pp 188 – 212 (as per scrolling)]
Students will learn how melting glaciers, crop yield decline, ocean acidification, displacement, malnutrition, rising sea levels and species extinction will impact the global economy through empirical analysis. They will also learn what makes developing countries most vulnerable to climate change. They will understand how certain adverse effects of climate change are already underway and early mitigation may be the only way to control the impacts.
Use this tool to help your students find answers to:
How will a 2ºC temperature rise scenario differ from a 4ºC temperature rise scenario?
Discuss climate vulnerabilities of:
Developed Countries
Developing Countries
Define and explain the ‘Mendelsohn’ model, the ‘Tol’ model, and the ‘Nordhaus’ model.
About the Tool
Tool Name
Part II: The Impacts of climate change on growth and development from Stern Review: The Economics of Climate Change
Discipline
Economics
Topic(s) in Discipline
Economics of Climate Change, Macroeconomics, Microeconomics, International Economics, Econometrics, Integrated Assessment Model, Per Capita Consumption, GDP, Economic Growth
Climate Topic
Energy, Economics and Climate Change; Policies, Politics and Environmental Governance
Type of tool
Reading (pp 55 to 167 ) – as per table of content; (pp 100 – 212) – as per scrolling
Grade Level
Undergraduate, Graduate
Location
Global
Language
English
Translation
Developed by
Nicholas Stern
Hosted at
Grupo de Pesquisa em Mudancas Climaticas (GPMC), Brazil
A reading from the ‘Stern Review: The Economics of Climate Change’ by economist Nicholas Stern for the Government of the United Kingdom which contains discussions on the need to stabilise greenhouse gas (GHG) concentrations and the subsequents cost of doing the same. The reading is subdivided into seven chapters, as follows:
Projecting the growth of greenhouse gas emissions: This chapter discusses the past drivers of global emissions growth and a future prediction with ‘business-as-usual’ scenario in case of climate policy inaction. [pp 169 – 192 (as per table of contents) or pp 214- 237 (as per scrolling)]
The challenge of stabilisation: This chapter details steps that can be taken to stabilise GHG emissions and the cost of delay. [pp 193 – 210 (as per table of contents) or pp 238 – 255 (as per scrolling)]
Identifying the costs of mitigation: This chapter looks at how mitigation costs are identified for various methods to reduce GHG emissions, who will pay for them, and what will be the long-term impacts of GHG cost-cutting. [pp 211 – 238 (as per table of contents) or pp 256 – 283(as per scrolling)]
Macroeconomic models of costs: This chapter goes into the modelling approaches to calculate costs, the factors that may impact these costs, and how GHG emission cost-cutting might affect GDP. [pp 239 – 252 (as per table of contents) or pp 284 – 297 (as per scrolling)]
Structural change and competitiveness: This chapter looks at the impacts of climate-change policies about market structure, trade, location and industrial emissions on market competitiveness. [pp 253 – 268 (as per table of contents) or pp 298 – 313(as per scrolling)]
Opportunities and wider benefits from climate policies: This chapter looks at the benefits and opportunities of climate change action for various industries and services and how it will impact the overall financial market. [pp 269 -283 (as per table of contents) or pp 314 – 328 (as per scrolling)]
Towards a goal for climate change policy: This chapter looks at cost-benefit analysis and climate change policy in the long run with a focus on fast changes to avoid adverse risks. [pp 284 – 307 (as per table of contents) or pp 329 – 352(as per scrolling)]
Students will learn the cause of the rise in greenhouse gas emissions and how, due to advancement in energy technology, income growth is no longer solely dependent on emission growth. They will also learn that the benefits of climate change policies for markets and industries outweigh its costs in the long-run.
Use this tool to help your students find answers to:
What will happen if we continue with the ‘business-as-usual’ scenario of greenhouse gas emissions?
State cost-effective methods and techniques to reduce greenhouse gas emission.
How does The Review calculate marginal costs and marginal benefits of climate change policy?
About the Tool
Tool Name
Part III: The economics of stabilisation from Stern Review: The Economics of Climate Change
Discipline
Economics
Topic(s) in Discipline
Economics of Climate Change, Macroeconomics, Microeconomics, International Economics, Integrated Assessment Model, Cost-Benefit Analysis, Economic Policy, Competitive Market Policies
Climate Topic
Energy, Economics and Climate Change; Climate Mitigation and Adaptation; Policies, Politics and Environmental Governance
Type of tool
Reading (pp 168 to 307) – as per table of content; (pp 213 – 352) – as per scrolling
Grade Level
Undergraduate, Graduate
Location
Global
Language
English
Translation
Developed by
Nicholas Stern
Hosted at
Grupo de Pesquisa em Mudancas Climaticas (GPMC), Brazil
An audio interview that introduces the effects of climate change on real estate pricing. This interview is by Climate Cast, MPR News, with Ed Walter, Urban Land Institute Global CEO.
Students will learn how real estate firms view climate change and how rising sea levels, storm surges, and unprecedented flooding affects land prices. Through a case study, students will understand how climate change affects individual house locations and real estate pricing.
Use this tool to help your students find answers to:
How are climate change and real estate related?
What is the impact of climate change on land prices?
How are large real estate firms addressing climate change?
About the Tool
Tool Name
Climate change risk showing up in real estate
Discipline
Economics
Topic(s) in Discipline
Environmental Economics, Economics of Climate Change, Carbon Pricing, Economics of Fossil Fuels
Climate Topic
Land Pricing, Real Estate Pricing, Disaster Management
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