Georgia Tech · Fall 2026

ECON 4210 — Economics of Climate Change

Undergraduate course · Mon/Wed 2:00–3:15 · Van Leer E283

Syllabus (PDF) All materials Canvas

Course information
Meets
Monday and Wednesday, 2:00 – 3:15 PM
Room
Van Leer E283
Instructor
Prof. Casey J. Wichman
Email
wichman@gatech.edu
Office
Old Civil Engineering 310 · office hours: Mon, 3:30–4:30 PM
TA
Ana Mazmishvili · amazmishvili3@gatech.edu · office hours: Thurs, 1:00 PM, virtual (in-person by request)
Text
K&O — Keohane & Olmstead (2016), Markets and the Environment, 2nd ed.
Grading
Four exams, 20 pts each, lowest score dropped (60 pts) · four problem sets (20 pts) · attendance and participation (20 pts: 10 attendance + 10 Ghost Emissions)

Reading the schedule

  • class00.pdf Slides, posted before each class.
  • exam Exam day. Each exam covers one unit of the course. Exams are pen and paper during the course meeting time.
  • canvas Book chapters are posted on Canvas. Journal articles link directly as PDFs.
  • extras Additional links to relevant news stories, podcasts, and videos.
  • ghost emissions Ghost Emissions round.

Ghost Emissions

We will play Ghost Emissions, a team-based simulation, from week 3 through week 15. You run a business in one of nine boroughs in a city. You want to be profitable, but economic activity emits ghosts, which cause slime damage to everyone in the city, and containing them is costly. Each borough's mayor, rotating among the business owners, can set policies to contain ghosts and generate benefits (fewer ghosts released, less slime damage), but has to balance those benefits against the cost of containing them.

Create an account with the class code posted on Canvas, and you are assigned a borough and a business straight away. Business and borough decisions are due Sunday 11:59 PM and results come out Monday. The first round is practice and does not count. Playing counts toward participation (1 pt per scored week, capped at 10 of 12, so two missed weeks cost nothing). Your team's rank and in-game outcomes are not graded.

Key dates

Fri Sep 18Problem set 1 due (Canvas, 11:59 PM)
Mon Sep 21Exam 1 — classes 1–6
Fri Oct 16Problem set 2 due (Canvas, 11:59 PM)
Mon Oct 19Exam 2 — classes 9–13
Fri Nov 13Problem set 3 due (Canvas, 11:59 PM)
Mon Nov 16Exam 3 — classes 15–21
Fri Dec 11Problem set 4 due (Canvas, 11:59 PM)
Wed Dec 16Exam 4 — classes 23–27 · 2:40–5:30 PM (final exam slot)

This page is the current schedule and will change as the semester goes on. Changes are posted here and announced in class. Assignments and grades stay on Canvas.

Week 1Aug 24–Aug 26

01Overview of the course

slidesclass01.pdf
readings
  • Syllabus

02What is climate change? Climate science 101

slidesclass02.pdf
readings
  • Don Fullerton and Robert Stavins (1998). “How economists see the environment.” Nature. PDF
  • Solomon Hsiang and Robert E. Kopp (2018). “An economist's guide to climate change science.” Journal of Economic Perspectives. PDF
  • [Further reading:] IPCC (2021). AR6 WGI Summary for Policymakers. link
extras
  • Quartz (2016). “A 1912 news article ominously forecasted the catastrophic effects of fossil fuels.” link
  • XKCD. “A timeline of Earth’s average temperature.” link
  • Scientific American (2015). “Exxon knew about climate change almost 40 years ago.” link
  • NYT interactive (2018). “How much hotter is your hometown than when you were born?” link
Week 2Aug 31–Sep 2

03How are the climate and the economy linked?

slidesclass03.pdf
readings
  • K&O Ch. 1 (pp. 1–6) — Canvas
  • Thomas Covert, Michael Greenstone, and Christopher R. Knittel (2016). “Will we ever stop using fossil fuels?” Journal of Economic Perspectives. PDF
  • [Further reading:] William Nordhaus (2019). “Climate change: The ultimate challenge for economics.” American Economic Review (Nobel lecture). PDF
extras
  • Planet Money (2020). “Negative oil.” 16-min podcast. link

04Why is climate change an economic problem? (I)

slidesclass04.pdf
readings
  • K&O Chs. 2, 4 & 5 — Canvas
Week 3Sep 7–Sep 9

Labor Day – no class

05Why is climate change an economic problem? (II) — the commons and the limits of bargaining

slidesclass05.pdf
readings
  • K&O Chs. 2, 4 & 5, continued — Canvas
  • [Further reading:] Michelle Nijhuis (2021). “The miracle of the commons.” aeon. link
  • [Further reading:] Eugene A. Rosa and Thomas Dietz (2012). “Human drivers of national greenhouse-gas emissions.” Nature Climate Change. PDF
ghost emissions
  • R0 · Practice — the game opens. Nothing counts this week.
Week 4Sep 14–Sep 16

06What are the costs and benefits of climate policy?

slidesclass06.pdf
readings
  • K&O Ch. 3 — Canvas
  • Kenneth J. Arrow et al. (1996). “Is there a role for benefit-cost analysis in environmental, health, and safety regulation?” Science. PDF
ghost emissions
  • R1 · Ghosts add up
extras
  • New York Times (Feb 2026). EPA repeals the 2009 endangerment finding, the legal basis for federal greenhouse gas regulation. link
  • New York Times (Sep 2026). EPA moves to erase greenhouse gas limits on power plants. link
  • Financial Times. “The Climate Game” — make the policy choices and try to reach net zero by 2050. link

Exam 1 review + flex

In class. Review for Exam 1 — come with questions.

slidesexam1_review.pdf
Week 5Sep 21–Sep 23

Exam 1exam

In class. Covers classes 1–6.

09Should I care about my grandchildren’s future? Discounting

slidesclass09.pdf
readings
  • Kenneth J. Arrow et al. (2013). “Determining benefits and costs for future generations.” Science. PDF
  • Lawrence Goulder and Robert Stavins (2002). “An eye on the future.” Nature. PDF
ghost emissions
  • R2 · The price of a ghost
extras
  • Planet Money (2012). “Putting a price tag on your descendants.” 17-min podcast. link
  • Hal Varian (2006). “Recalculating the costs of global climate change.” New York Times. link
Week 6Sep 28–Sep 30

10Can we put a price on climate impacts? (I — What is a damage function?)

slidesclass10.pdf
interactiveHow will climate change affect Prof. Wichman’s electricity use?
readings
  • Maximilian Auffhammer (2018). “Quantifying economic damages from climate change.” Journal of Economic Perspectives. PDF
  • Solomon Hsiang et al. (2017). “Estimating economic damage from climate change in the United States.” Science. PDF
ghost emissions
  • R3 · Patience
extras
  • NYT interactive (2024). “The hidden environmental cost of food.” link

11Can we put a price on climate impacts? (II — Estimating damages and the adaptation gap)

slidesclass11.pdf
readings
  • Marshall Burke, Solomon M. Hsiang, and Edward Miguel (2015). “Global non-linear effect of temperature on economic production.” Nature. PDF
  • Katharine Ricke, Laurent Drouet, Ken Caldeira, and Massimo Tavoni (2018). “Country-level social cost of carbon.” Nature Climate Change. PDF
  • [Further reading:] Wolfram Schlenker and Michael J. Roberts (2009). “Nonlinear temperature effects indicate severe damages to US crop yields under climate change.” Proceedings of the National Academy of Sciences. PDF
  • [Further reading:] Olivier Deschênes and Michael Greenstone (2011). “Climate change, mortality, and adaptation: Evidence from annual fluctuations in weather in the US.” American Economic Journal: Applied Economics. PDF
  • [Further reading:] Richard S. J. Tol (2009). “The economic effects of climate change.” Journal of Economic Perspectives. PDF
extras
  • National Geographic (2021). “Can the iconic Georgia peach keep growing in a warming South?” link
  • Marketplace (2021). “Climate change is going to make buying a home even more expensive.” link
  • Data and code from the in-class climate-electricity estimation example. GitHub
Week 7Oct 5–Oct 7

Fall recess – no class

12Can we put a price on climate impacts? (III — A closer look at climate damages)

slidesclass12.pdf
readings
  • Tamma Carleton et al. (2022). “Valuing the global mortality consequences of climate change accounting for adaptation costs and benefits.” Quarterly Journal of Economics. PDF
  • [Further reading:] Alan Barreca, Karen Clay, Olivier Deschenes, Michael Greenstone, and Joseph S. Shapiro (2016). “Adapting to climate change: The remarkable decline in the US temperature-mortality relationship over the twentieth century.” Journal of Political Economy. PDF
  • [Further reading:] American Climate Prospectus, Chs. 5–10. link
ghost emissions
  • R4 · The Institute revises
Week 8Oct 12–Oct 14

13Can we put a price on climate impacts? (IV — The social cost of carbon, and who bears the damages)

readings
  • “Social Cost of Carbon 101.” Resources for the Future explainer (2019). link
  • Kevin Rennert et al. (2022). “Comprehensive evidence implies a higher social cost of CO2.” Nature. PDF
  • [Further reading:] Tamma Carleton and Michael Greenstone (2022). “A guide to updating the US government’s social cost of carbon.” Review of Environmental Economics and Policy. PDF
  • [Further reading:] US EPA (2023). “Report on the social cost of greenhouse gases: Estimates incorporating recent scientific advances.” link
ghost emissions
  • R5 · The vote
extras
  • NYT opinion (2021). “The most important number you’ve never heard of.” link
  • Resources Magazine. “The social cost of carbon: Reaching a new estimate.” link
  • LPE Project. “Climate change, racial justice, and cost-benefit analysis.” link

Exam 2 review

In class. Review for Exam 2 — come with questions.

Week 9Oct 19–Oct 21

Exam 2exam

In class. Covers classes 9–13.

15How would an economist solve climate change? (I)

readings
  • K&O Ch. 8 — Canvas
ghost emissions
  • R6 · Pick a tool
Week 10Oct 26–Oct 28

16How would an economist solve climate change? (II)

readings
  • “Sell Me Your Climate Bombs.” Planet Money (2020). link
  • Gilbert Metcalf (2020). “How to set a price on carbon pollution.” Scientific American. PDF
  • [Further reading:] Joseph Stiglitz (2019). “Addressing climate change through price and non-price interventions.” European Economic Review. PDF
  • [Further reading:] K&O Ch. 9 — Canvas

17Climate policy in practice — carbon pricing around the world, and its politics

readings
  • TBD
ghost emissions
  • R7 · Cost shock
extras
  • Bloomberg (2022). “New Zealand to tax agriculture emissions at the farm in world first.” link
Week 11Nov 2–Nov 4

18In-class policy game

No assigned reading. Instructions provided in class.

19Who pays for a carbon tax?

readings
  • William Pizer and Steven Sexton (2021). “The distributional impacts of energy taxes.” Review of Environmental Economics and Policy. PDF
  • [Further reading:] Baoping Shang (2023). “The poverty and distributional impacts of carbon pricing: Channels and policy implications.” Review of Environmental Economics and Policy. PDF
  • Roberton C. Williams III, Hal Gordon, Dallas Burtraw, Jared C. Carbone, and Richard D. Morgenstern (2015). “The initial incidence of a carbon tax across income groups.” National Tax Journal. PDF
ghost emissions
  • R8 · Where does the money go?
extras
  • The Atlantic (2016). “Where the poor spend more than 10 percent of their income on energy.” link
  • LA Times (2021). “Poor neighborhoods bear the brunt of extreme heat.” link
Week 12Nov 9–Nov 11

20Does behavior undermine climate policy? Rebound effects

readings
  • Kenneth Gillingham, David Rapson, and Gernot Wagner (2015). “The rebound effect and energy efficiency policy.” Review of Environmental Economics and Policy. PDF
  • Kenneth Gillingham, Matthew J. Kotchen, David S. Rapson, and Gernot Wagner (2013). “The rebound effect is overplayed.” Nature. PDF
  • David Owen (2010). “The efficiency dilemma.” The New Yorker. link

21How do we cut emissions cheaply? Innovation, learning curves, and second-best policy

readings
  • TBD
ghost emissions
  • R9 · Better traps
extras
  • The Indicator (2024). “How China became solar royalty.” 9-min podcast. link
  • “The biggest climate bill of your life — but what does it DO!?” Video explainer on the IRA. link
  • The Hill (2021). “How to reach 50 percent zero-emission vehicles.” link
Week 13Nov 16–Nov 18

Exam 3exam

In class. Covers classes 15–21.

23Can’t we just live with climate change? Adaptation

readings
  • Marshall Burke et al. (2024). “Are we adapting to climate change?” NBER Working Paper 32985. PDF link
  • [Further reading:] Cristina Cattaneo et al. (2019). “Human migration in the era of climate change.” Review of Environmental Economics and Policy. PDF
ghost emissions
  • R10 · Live with it or fix it?
extras
  • NRDC. “Climate adaptation 101.” link
  • NYT (2021). “The cost of insuring expensive waterfront homes is about to skyrocket.” link
Week 14Nov 23–Nov 25

24What don’t we know? Uncertainty, fat tails, and tipping points

readings
  • Wagner & Weitzman Ch. 3 — Canvas
  • Martin Weitzman (2014). “Fat tails and the social cost of carbon.” American Economic Review, Papers & Proceedings. PDF
  • [Further reading:] Simon Dietz, James Rising, Thomas Stoerk, and Gernot Wagner (2021). “Economic impacts of tipping points in the climate system.” Proceedings of the National Academy of Sciences. PDF
  • [Further reading:] Geoffrey Heal (2017). “The economics of the climate.” Journal of Economic Literature. PDF
  • [Further reading:] Wallace Broecker (1987). “Unpleasant surprises in the greenhouse?” Nature. PDF
  • [Further reading:] Robert S. Pindyck (2013). “Climate change policy: What do the models tell us?” Journal of Economic Literature. PDF
extras
  • NYT Magazine (2019). “The problem with putting a price on the end of the world.” link

Thanksgiving break – no class

Week 15Nov 30–Dec 2

25Can we fix climate change with this weird trick? Geoengineering and offsets

readings
  • Wagner & Weitzman Chs. 5 & 6 — Canvas
  • [Further reading:] Garth Heutel, Juan Moreno-Cruz, and Katharine Ricke (2016). “Climate engineering economics.” Annual Review of Resource Economics. PDF
  • [Further reading:] Todd Sandler (2018). “Collective action and geoengineering.” The Review of International Organizations. PDF
ghost emissions
  • R11 · The Dimmer
extras
  • Radiolab. “Smog cloud silver lining.” Podcast. link
  • Last Week Tonight with John Oliver (2022). “Carbon offsets.” 23-min video. link
  • GQ. “This questionable billionaire-backed climate change plan is straight out of a Simpsons episode.” link

26Can we address climate change on our own? International cooperation

readings
  • Kimberly Clausing and Catherine Wolfram (2023). “Carbon border adjustments, climate clubs, and subsidy races when climate policies vary.” Journal of Economic Perspectives. PDF
  • [Further reading:] William Nordhaus (2015). “Climate clubs: Overcoming free-riding in international climate policy.” American Economic Review. PDF
ghost emissions
  • R12 · The Accord
  • The Council: in-class treaty vote.
extras
  • Planet Money (2022). “COP-out: who’s liable for climate change destruction?” 9-min podcast. link
  • NYT (2025). “China for first time promises to reduce its greenhouse gas emissions.” link
  • NYT interactive (2025). “10 years after a breakthrough climate pact, here’s where we are.” link
Week 16Dec 7

27Is changing our own behavior the solution? + exam review

readings
  • Wagner & Weitzman Ch. 7 — Canvas
ghost emissions
  • Ghost Emissions: results reveal.
extras
  • The Economist, To a Lesser Degree. “Best behaviour.” 31-min podcast. link
  • NYT Magazine (2019). “The next reckoning: Capitalism and climate change.” link
  • Project Syndicate (2021). “Economics needs a climate revolution.” link
  • Wired. “Stop telling kids they’ll die from climate change.” link
FinalsDec 16

Exam 4exam

2:40–5:30 PM, Van Leer E283 (the registrar's final exam slot for this class). Covers classes 23–27; same length and format as the other exams, not cumulative.