Postgraduate Course: Carbon Pricing (CMSE11486)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 10 |
ECTS Credits | 5 |
| Summary | The course provides a foundation in economic theory for carbon pricing and a detailed understanding of the design and implementation of carbon pricing policies. It covers the theoretical framework for designing textbook carbon pricing schemes such as emissions trading and carbon taxes while developing practical skills for addressing teething issues and implementing effective market management solutions. Students will gain an in-depth understanding of how carbon pricing functions and be equipped to assess its impact on society and businesses. |
| Course description |
The course provides a foundation in economic theory for carbon pricing, and a detailed understanding of the design and implementation of carbon pricing policies. The course provides the theoretical knowledge for designing textbook carbon pricing schemes, e.g. emissions trading and carbon taxes, and develops practical knowledge for addressing teething issues and the required market management solutions.
The course provides an overview of the economic theory underpinning the main policy instruments explored in other courses. In particular, the course introduces concepts, institutional provisions and market design elements relevant for the Carbon Accounting and Climate Policy courses. The course also complements the Climate Policy and Sustainable Finance courses by exploring carbon management strategies and market behaviour.
Outline Content
1. Market failures, externalities and the Coase Theorem
2. The theory of carbon pricing - carbon taxes and carbon markets
3. The theory of carbon pricing - institutional topics in cap-and-trade
4. The practice of carbon pricing - problems and solutions
5. International carbon markets and the future of carbon pricing
6. Examining carbon prices and market behaviour
7. Managing carbon risk - industry perspective
Student Learning Experience
The course includes guest speakers. This provides useful real-world insights alongside the more theoretical aspects of the course.
The course will be taught through weekly lectures and will generally include a case study or other interactive discussion component.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | For MSc Climate Change Finance & Investment, with limited availability for students in MSc Carbon Management and MSc Energy Society and Sustainability in the School of Geosciences. Geosciences students must get prior approval from their Programme Director to request permission. |
Course Delivery Information
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| Academic year 2025/26, Not available to visiting students (SS1)
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Quota: 63 |
| Course Start |
Block 2 (Sem 1) |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
100
(
Lecture Hours 10,
Seminar/Tutorial Hours 5,
Programme Level Learning and Teaching Hours 2,
Directed Learning and Independent Learning Hours
83 )
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| Assessment (Further Info) |
Written Exam
0 %,
Coursework
100 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
100% coursework (individual) - Assesses all course Learning Outcomes
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| Feedback |
Formative: Feedback will be provided throughout the course.
Summative: Feedback will be provided on the assessment within agreed deadlines. |
| No Exam Information |
Learning Outcomes
On completion of this course, the student will be able to:
- Describe and critically evaluate the design of existing and proposed carbon pricing schemes.
- Critically evaluate alternative strategies for participants of carbon pricing schemes.
- Describe the likely future trends in carbon pricing development.
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Reading List
Field and Field Environmental economics: an introduction; McGraw Hill. any edition after edition seven.
Phaneuf, D.J. and Requate T. (2017) 'A Course in Environmental Economics: Theory, Policy and Practice', Cambridge University Press.
Goulder L.H. and Parry I. (2008) `Instrument Choice in Environmental Policy', Review of Environmental Economics and Policy, 2 (2), pp. 152-174. |
Additional Information
| Graduate Attributes and Skills |
Not entered |
| Keywords | Not entered |
Contacts
| Course organiser | Dr Luca Taschini
Tel:
Email: Luca.Taschini@ed.ac.uk |
Course secretary | Mr Pete Park
Tel:
Email: Pete.Park@ed.ac.uk |
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