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Integrated Economy-Environment-Energy Modeling
Last Updated: 2026-02-05 16:39:12
Abstract
Integrated assessments of how energy policy and environmental change interact with the broader economy are an essential tool for both research and policy design in the 21st century. The goal of this course is to advance students from being consumers to producers of such “integrated assessment” models at a level appropriate for writing a Master’s thesis.
Objective
After taking this course, students should be able to: - Understand and code up the DICE climate-economic model, including basic extensions. - Understand and code up the GHKT climate-economic model, including basic extensions. - Understand the differences between and pros/cons of “policy optimization” vs. “decentralized equilibrium” and “general equilibrium” vs. “partial equilibrium/simulation” models. - Understand and code up integrated assessment models with multiple regions. Familiarize with the challenges of international climate policy and the concepts of free-riding, Nash equilibrium, cooperative vs. non-cooperative equilibrium and Negishi welfare weights. - Understand extended integrated assessment model structures designed to study important topics such as endogenous technical change and the interactions between climate change, uncertainty, and the economy.
Content
This course is designed for Master’s students with an interest in questions at the intersection of the environment, energy systems and markets, and the (macro)economy. The goal of the course is to help students transition from being consumers to producers of Master’s thesis-level research based on integrated assessment models. As a foundation, the course will give students a theoretical foundation in the workings of different types of integrated assessment models, such as policy optimization models, decentralized equilibrium models, and non/partial equilibrium models, as well as non-cooperative (Nash equilibrium) models, as well as their theoretical underpinnings (such as the Fundamental Welfare Theorems and Negishi weighting). The course will also go over the theoretical foundations of a specific set of seminal models that we will study in more detail, with a focus on climate-economic models. Moving towards practical applications, students will then learn how to code up and build on existing code of several influential models to prepare for exploring their own research questions. While the instructor will prepare and present lecture slides, students are expected to read key papers assigned for reading, and class discussion is strongly encouraged. Student assessment is based on both practical exercises and in-class quizzes. The course materials include both lecture slides (posted on the course website) and papers (also posted on the course website). The principal coding language we will use is Matlab (available through ETH), although students may use other languages if preferred.
General Information
- Language
- English
- Levels
- MSC
- Frequency
- Yearly recurring
Examination
- Type
- graded semester performance
Registration & Places
- Max Places
- 20
- Signup End
- 05.03.2024
Course Components
| Type | Title | Time & Place | Hours |
|---|---|---|---|
| lecture with exercise | Integrated Economy-Environment-Energy Modeling |
|
2 h weekly |