Introduction to environmental economics

• Lecture notes
• KO Chapters 1 and 4
• Fullerton, Don, and Robert Stavins. “How economists see the environment.” Nature 395, no. 6701 (1998): 433-434.
• Krutilla, John V. “Conservation reconsidered.” The American Economic Review 57, no. 4 (1967): 777-786.

Market failures: Public goods and externalities

• Lecture notes
• KO Chapter 5

Coase theorem

• Lecture notes
• Coase, Ronald. “The problem of social cost.” The Journal of Law and Economics 3 (1960): 1-44.

In class Coasean bargaining game

Policy: Standards

• Lecture notes
• KO Chapters 8 and 9

Taxes and Subsidies

• Lecture notes
• KO Chapters 8 and 9

Tradable permits

• Lecture notes
• Resources Radio: A Status Report on Global Emissions Trading, with Stephanie La Hoz Theuer
• KO Chapters 8 and 9, 10
• Muller, Nicholas Z., and Robert Mendelsohn. “Efficient pollution regulation: getting the prices right.” American Economic Review 99, no. 5 (2009): 1714-39.

In class emissions trading game

Policy under uncertainty

• Lecture notes
• KO Chapters 8

Distortions and second-best policies

• Lecture notes
• Holland, Stephen P., Jonathan E. Hughes, and Christopher R. Knittel. “Greenhouse gas reductions under low carbon fuel standards?.” American Economic Journal: Economic Policy 1, no. 1 (2009): 106-46.

Climate Policy and Trade: Carbon Tariffs

• Lecture notes
• Brunel, Claire, and Arik Levinson. “Carbon Tariffs 101.” NBER Working Paper No. 33024 (2024).

Econometrics review

• Lecture notes
• Mixtape Chapter 2

Discounting

• Lecture notes
• Giglio, Stefano, Matteo Maggiori, and Johannes Stroebel. “Very long-run discount rates.” The Quarterly Journal of Economics 130, no. 1 (2015): 1-53.” The Review of Financial Studies 34, no. 8 (2021): 3527-3571.

Non-market valuation: Travel cost

• Lecture notes
• King and Marzotta

Non-market valuation: Contingent valuation

• Lecture notes
• Krupnick, Alan J., and Juha Siikamäki. “How people value what nature provides.” Resources 50 (2007): 1-14.

In class hedonics game

The environment and real estate markets

• Lecture notes
• Greenstone, Michael, and Justin Gallagher. “Does hazardous waste matter? Evidence from the housing market and the superfund program.” The Quarterly Journal of Economics 123, no. 3 (2008): 951-1003.
• Bernstein, Asaf, Matthew T. Gustafson, and Ryan Lewis. “Disaster on the horizon: The price effect of sea level rise.” Journal of Financial Economics 134, no. 2 (2019): 253-272.

Offset markets

• Lecture notes
• Aldy, Joseph E., and Zachery Halem. “The Evolving Role of Greenhouse Gas Emission Offsets in Combating Climate Change.” (2022).
• Calel, Raphael, Jonathan Colmer, Antoine Dechezleprêtre, and Matthieu Glachant. “Do carbon offsets offset carbon?” (2021).

Climate risk and financial instruments

• Lecture notes
• Resources Radio: Pricing Climate Risk in the Markets, with Robert Litterman
• Schlenker, Wolfram, and Charles A. Taylor. “Market expectations of a warming climate.” Journal of Financial Economics 142, no. 2 (2021): 627-640.
• Painter, Marcus. “An inconvenient cost: The effects of climate change on municipal bonds.” Journal of Financial Economics 135, no. 2 (2020): 468-482.

Green instruments

• Lecture notes
• Flammer, Caroline. “Green bonds: effectiveness and implications for public policy.” Environmental and Energy Policy and the Economy 1, no. 1 (2020): 95-128.
• Baker, Malcolm, Daniel Bergstresser, George Serafeim, and Jeffrey Wurgler. “Financing the response to climate change: The pricing and ownership of US green bonds.” (2018).