Topic: In the course we focus on the The EU Emissions Trading System (EU ETS). The following topics will be discussed in detail

• Emission trading v.s. emissions tax.
• Impact of different designs of ETS on welfare, abatement efforts and the fiscal situation of the government.
• Empirical investigation and statistical modeling of the EU-ETS for CO2 permits.
• Ex-post evaluation of the EU ETS.

Modus: After a short introduction on the subject, students will prepare presentations on a scientific paper/topic in groups of two and present a summary of its contents in class. Both students in a group should have read and understood the full paper which they are presenting. After the presentations there will be the possibility for discussions and individual questioning on the subject as well as the methods of the paper. Additionally, home exercises will be given. These involve stating your opinion on a particular topic of the course, reading an article and answering questions, providing a solution for an empirical problem, or solving small analytic problems. Grades will be given on the basis of

• the presentation (required for a positive grade),
• exercises,
• active class participation.

The presentations should

• discuss the research questions posed in the paper, the results as well as the used methods,
• last between 25 and 30 minutes,
• consist of 15-20 slides,
• be submitted latest two days before the presentation via e-mail in pdf format.

The exercises

• are related to the topics discussed in the course,
• include reading/preparing a short article, doing some extra research on a topic or "classical" problem solving,
• have to be submitted at the beginning of each class.

Methods: Since the papers are mostly concerned with

• formal models of the strategic interactions of economic agents and
• the empirical testing of certain economic hypothesis,

• Recommended Reading: Böhringer (2014), Two Decades of European Climate Policy: A Critical Appraisal, Review of Environmental Economics and Policy 8(1), 1--17.

• Important: Homeworks need to be handed in in hard copy and not via email!
• Important: Attendance of the first lecture is required for a successful registration to the course.
• Information regarding the consequences of cheating.
• If you do not want to participate in the course and are registered, please deregister in the UNIVIS in time. All students who are registered at the end of the semester will be graded. If you want to deregister and are already assigned a paper, please also inform me per mail.
• Important: All students who want to participate in the course have to decide on presentations on March 13, 2015.