This PSE summer school introduces participants to cutting-edge research on the topic and familiarizes them with the relevant methods to analyze (econometric analysis, dynamic modelling).The objective of the course is to equip the participants with the background and tools that are needed to contribute to this dynamic field in terms of research and policy design and evaluation.
The main questions we cover are the following. How do we measure the impacts of climate change on economic outcomes? What are the relevant economic instruments to combat climate change in a globalized world? How can migration and trade help countries and individuals mitigate the impacts of climate change and/or disasters? How do lobbying and information acquisition influence the actual climate policies?
- Climate Change and Human Health: Impacts and Adaptation - Olivier Deschenes
- Measuring the Impacts of Climate Change and Natural Disasters on Growth and Migration - Katrin Millock
- The Macroeconomics of Climate Change - Katheline Schubert
- Lobbying and private politics - Mireille Chiroleu-Assouline
- Trade and the Environment: Impacts and Adaptation - Hélène Ollivier
Workshop: present your paper
Participants will have the opportunity to submit a paper to be presented within this programme. Selected papers will be presented in front of participants and faculty in slots reserved for such presentations.
Climate Change and Human Health: Impacts and Adaptation - Olivier Deschenes
This course will focus on measuring the varied ways in which climate change will affect human health, and the possible adaptation responses that can mitigate those impacts.
We will begin by developing a conceptual framework to interpret the now standard regressions of health outcomes on weather variation in the context of climate change. The second component of the course will review recent advances in quasi-experimental empirical methods relevant to the climate change impact literature. Finally, the course will conclude with a review of recent papers documenting the impacts of climate change on health outcomes and adaptation measures.
- Analytical framework for estimating climate change impacts using weather data
- Empirical methods to estimate climate change impacts
- Empirical studies of climate change on health and adaptation
- Estimating the Costs of Climate Change Adaptation
- Hsiang, S. (2016). “Climate Econometrics.” Annual Review of Resource Economics, 8: pp. 43–75
- Deschenes, O., and K. Meng (2018). “Quasi-Experimental Methods in Environmental Economics: Opportunities and Challenges”, Handbook of Environmental Economics, Volume 4, pp. 285-332.
- Barreca, A., K. Clay, O. Deschenes, M. Greenstone, and J. Shapiro (2016). “Adapting to Climate Change: The Remarkable Decline in the U.S. Temperature-Mortality Relationship Over the 20th Century.” Journal of Political Economy 124(1): pp. 105-159.
- Deschenes, O., and M. Greenstone (2011). “Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the U.S.” American Economic Journal: Applied Economics 3(4): pp. 152-185
Measuring the Impacts of Climate Change and Natural Disasters on Growth and Migration - Katrin Millock
This course is devoted to the measurement of the economic impacts of climate change, by focusing on the difference between income and growth effects. The course will cover the impacts of temperature and rainfall on total income and economic growth. We will also study the impacts of natural disasters, as compared to more long-term trends in climate. In the last part of the course we will discuss recent research analyzing one form of adaptation to climate change, i.e., migration. The course thus intends to give participants a thorough understanding of the methods used, their assumptions and challenges.
- How to measure climate change impacts on economic outcomes, especially on income and growth
- The impacts of natural disasters on growth
- The impacts of climate change on migration
- Dell M., B. Jones and B. Olken (2012). “Temperature shocks and economic growth: Evidence from the last half century”, American Economic Journal: Macroeconomics 4(3), 66-95.
- Hsiang, S. and A. Jina (2014). “The causal effects of environmental catastrophe on economic growth: Evidence from 6,700 tropical cyclones”. NBER Working Paper 20352.
- Kocornik-Mina, A., T. McDermott, G. Michaels and F. Rauch (2019). “Flooded cities”. American Economic Journal: Applied Economics (forthcoming).
- Cattaneo, C., M. Beine, C. Fröhlich, D. Kniveton, I. Martinez-Zarzoso, M. Mastrorillo, K. Millock, E. Piguet and B. Schraven (2019), “Human migration in the era of climate change”, Review of Environmental Economics and Policy, 13(2), 189-206.
The Macroeconomics of Climate Change - Katheline Schubert
We will discuss climate change in the perspective of macroeconomic modeling and quantitative evaluation. We present the building blocks of top-down Integrated Assessment Models (IAMs) and discuss the central questions the modeler has to address (discounting, damages, uncertainty, non-linearities, tipping points etc.). We conclude with a presentation of the DICE model and a discussion about the timing of climate policy and the social cost of carbon.
- Climate change: the natural-science background
- Global economy-climate models
- The DICE model and beyond
- Hassler, J., Krussel, P. and Smith, A.A. (2016). “Environmental macroeconomics: the case of climate change.” Chapter 24 in Handbook of Macroeconomics, vol. 2B, Elsevier.
- Hsiang, S. and Kopp, R.E. (2018). “An Economist’s Guide to Climate Change Science.” Journal of Economic Perspectives, 32(4), 3–32.
- Heal, G. (2017). “The economics of the climate.” Journal of Economic Literature, 55(3), 1046–1063.
- Nordhaus, W.D. (2018). “Projections and Uncertainties about Climate Change in an Era of Minimal Climate Policies.” American Economic Journal: Economic Policy, 10(3), 333–360.
Lobbying and private politics - Mireille Chiroleu-Assouline
The objective of this course is to analyse the political economy constraints related to the adoption and implementation of climate change mitigation policies. It will focus on the competition between companies and green NGOs to influence individuals and public decision-makers by providing them with information, whether science-based or biased. The course will explore in depth how the interaction of activist pressure and firms’ lobbying has an impact on international negotiations and environmental regulation.
- Awareness campaigns and information warfare
- Political influence in international climate negotiations
- Lobbying by interest groups and environmental regulation
- Heyes, A., Lyon, T. P., Martin, S. (2018). Salience games: Private politics when public attention is limited. Journal of Environmental Economics and Management, 88, 396-410.
- Marchiori, C., Dietz, S., Tavoni, A. (2017). Domestic politics and the formation of
international environmental agreements. Journal of Environmental Economics and
Management, 81, 115-131.
- Meng, K. and Rode, A. (2019). The social cost of lobbying over climate policy. Nature Climate Change 9, p. 472-476.
- Yu, Z. (2005). Environmental protection: A theory of direct and indirect competition for political influence. The Review of Economic Studies, 72(1), 269-286.
Trade and the Environment: Impacts and Adaptation - Hélène Ollivier
This course will cover the latest research on trade and the environment, with a strong emphasis on empirical applications. We will study the issues related to CO2 emissions being a global externality in a world with little international cooperation (e.g., carbon leakage). We will also present empirical evidence of trade as a mitigation mechanism, and study how natural disasters may disrupt trade networks and thus propagate shocks through the economy.
- Regulating a Global Externality: Trade and Heterogeneous Regulations
- Measuring the Consequences of Trade on Firm-Level Emissions
- Trade as a Mitigation Mechanism
- The Disruptive Power of Natural Disasters on Trade Networks
- Cherniwchan J., B. Copeland and S. Taylor (2017). “Trade and the Environment: New Methods, Measurements, and Results”, Annual Review of Economics, vol. 9, 59-85.
- Shapiro, J. and R. Walker (2018). Why is Pollution from US Manufacturing Declining? The Roles of Environmental Regulation, Productivity, and Trade”, American Economic Review, vol. 108(12), 3814-54.
- Allen, T. and D. Atkin (2016). “Volatility and the Gains from Trade”, NBER Working Paper.
- Carvalho, V., M. Nirei, Y. Saito and A. Tahbaz-Salehi (2016). “Supply chain disruptions: Evidence from the Great East Japan Earthquake”, Working Paper.
Contents - Climate Change