Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.


Credits: 6

Schedule: 11.09.2023 - 14.12.2023

Teacher in charge (valid for whole curriculum period):

Teacher in charge (applies in this implementation): Matti Liski, Lassi Ahlvik

Contact information for the course (applies in this implementation):

CEFR level (valid for whole curriculum period):

Language of instruction and studies (applies in this implementation):

Teaching language: English. Languages of study attainment: English


  • valid for whole curriculum period:

    This is an advanced course on the modern theory of environmental and economics that covers the environmental externality and instrument design problems. The first part of the course focuses on the policy design and instrument choice, with a special focus on the problems arising from asymmetric information. The second part considers the policies in a general equilibrium context that is relevant for climate change. Lectures cover the theory; readings cover both theory and empirics.

Assessment Methods and Criteria
  • valid for whole curriculum period:

    Problem sets: scoring 0-5, 40 % of the grading Exam: scoring 0-5, 60 % of the grading

  • valid for whole curriculum period:

    The course has 4 learning elements: lectures,
    reading assignments, exercises, exam.
    Lectures (24 h)
    Conceptual background
    Applications and cases introduced
    Readings (60 h)
    Learning diary on readings and lectures

    Problem sets (60 h)
    Learning methods and applying to cases
    Introduced and discussed in groups during the
    2 x 1 compulsory home exercises


Study Material
  • valid for whole curriculum period:

    Readings, lectures, problem sets

Substitutes for Courses
SDG: Sustainable Development Goals

    13 Climate Action


Further Information
  • valid for whole curriculum period:

    teaching period: 2023-2024 Autumn I-II

    Teaching language: English