Lecture

Lecture, 2 cred.h, benoteter certificate, ECTS studies, ECTS credits: 5
presence event, suitable for ERASMUS-/exchange students, language of lecture is English
Time and place: single appointment on 24.4.2025 14:00 - 18:00, WSP1 - R.309; single appointment on 8.5.2025 14:00 - 16:00, Online-Veranstaltung; single appointment on 15.5.2025 14:00 - 18:00, WSP1 - R.309; single appointment on 22.5.2025, single appointment on 5.6.2025 14:00 - 16:00, Online-Veranstaltung; single appointment on 12.6.2025 14:00 - 18:00, WSP1 - R.309; single appointment on 19.6.2025, single appointment on 26.6.2025, single appointment on 3.7.2025 14:00 - 16:00, Online-Veranstaltung; single appointment on 10.7.2025 14:00 - 16:00, WSP1 - R.309
from 24.4.2025 to 10.7.2025

Prerequisites / Organisational information

Modulcode: VWLerAdv-02a

Modulnummer: 3048102

Prüfungsnummer: 41750

Prüfungsform laut FPO: Modulprüfung

Konkrete Prüfungsform im SoSe 2025: term paper

Weitere Informationen werden auf OLAT bereit gestellt: Kurs Macroeconomics of Climate Change

Die Anzahl der ECTS-Punkte sowie die Zulassung zur Prüfung für dieses Modul richtet sich nach den Angaben zu diesem Modul in der FPO (Prüfungsordnung) Ihres Studiengangs (ggf. nur im Anhang der deutschen Fassung). Sollte dieses Modul nicht explizit in Ihrer FPO aufgeführt sein, informieren Sie sich bitte zu Beginn des Semesters über Zulassungsmöglichkeiten. In der Regel ist in diesem Fall eine Zulassung zur Prüfung dieses Moduls nicht möglich. Eine Übersicht über alle Studiengänge, die Module des Instituts für Volkswirtschaftslehre wählen können, finden Sie auch hier: Nebenfach Volkswirtschaftslehre – Handbuch für Exportmodule . Sie können auch vorab in QIS prüfen, ob Sie dieses Modul dort in der Übersicht für die Prüfungsanmeldung aufgeführt finden, wobei die Prüfungsnummer in univis genannt ist. Die Anmeldung zur Prüfung ist nur während des Anmeldezeitraums möglich. Sollten Sie nach Durchsicht dieser Unterlagen noch Fragen haben, wenden Sie sich bitte an Ihren Studienfachberater.

Contents

The Macroeconomics of Climate change

The objective of the course is to offer a deep knowledge of the climate change impacts on the economy in the short and medium term. The first part of the course is dedicated to the description of the link/channels, through which, the physical and transition risks have an impact on the economic activity. Next, we study the reaction of the policy makers, both fiscal and monetary authorities, followed by the impacts on the financial sector. Finally, we analyse the macro modelling challenges (Integrated Assessment Models, Semi Structural Models and DSGE Models) used for projections and evaluation of alternative scenarios. Moreover, some time will be spent to analyse the importance of some special topics such as Climate Change and income inequality, Stranded Assets, Uncertainty and Carbon Tax. To better understand the theoretical aspects, during the whole semester we will discuss a number of case studies: i.e., projections, implications and impacts of the business-as-usual case (BAU), alternative scenarios with and without mitigation policies, efficient fiscal policies to achieve given targets, etc.

Recommended literature

Chapter 1: Macroeconomic risks of climate change: Physical and transition risks

Sandra Batten, Rhiannon Sowerbutts and Misa Tanaka (2016): Let’s talk about the weather: the impact of climate change on central banks, Bank of England, Staff Working Paper No. 603, May 2016.
Basel Committee on Banking Supervision (2021) Climate-related risk drivers and their transmission channels, Basel Committee on Banking Supervision, April 2021

Chapter 2: Macroeconomic risks of climate change: Transmission channels and uncertainty

Andersson M., Biaccianti C., Morgan J. (2020) Climate change and the macro economy, ECB, Occasional Paper Series, No 243/June 2020
Sandra Batten (2018): Climate change and the macro-economy: a critical view, Bank of England, Staff Working Paper No. 706.

Chapter 3: Means of action of Fiscal Policy: Taxation, Regulation

IMF (2019): Fiscal Policies for Paris Climate Strategies – From Principle to Practice

Chapter 4: Climate change and Impacts on the Financial Sector

Bolton P., Despres M., Pereira da Silva L. A., Samama F., Svartzman R. (2020): The green swan Central banking and financial stability in the age of climate change, BIS.
Basel Committee of Banking Supervision (2021) Climate-related risk drivers and their transmission channels, Basel Committee on Banking Supervision, April 202

Chapter 5: Climate change and Impacts on the Monetary Policy

ECB Strategy Review (2021), Climate change and monetary policy in the euro area, Occasional Papers Series 271, September 2021.

Chapter 6: The Macro modelling challenges – Modelling: Semi-structural DSCE / IAM

Nordhaus W. (2019): Climate Change: The Ultimate Challenge for Economics, American Economic Review 2019, 109(6): 1991–2014, https://doi.org/10.1257/aer.109.6.1991
Thomas Allen et al.: Climate-Related Scenarios for Financial Stability Assessment: an Application to France, Banque de France, Working Papers July 2020, WP 774

Chapter 7: Case Studies

UN Environment programme (2021): Economic Impacts of Climate Change: Exploring short- term climate related shocks for financial actors with macroeconomic models, United Nations
IMF (2022): World Economic Outlook, October 2022, Ch. 3 Near-Term Macroeconomic Impact of Decarbonization Policies pp. 71-95. https://www.imf.org/en/Publications/WEO/Issues/2022/10/11/world-economic-outlook-october-2022
Allen, T et al. (2023) Using Short-Term Scenarios to Assess the Macroeconomic Impacts of Climate Transition, Banque de France, September 2023, WP #922

Additional information

Keywords: macroeconomics,climate change,climate economics,climate,economics,ecb,ezb
Expected participants: 15



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Advanced Topics in Environmental and Resource Economics: Macroeconomics of Climate Change (VWLer-Adv-02a) (030259) [Import]