Last modified: 22 Jul 2026 13:42
Climate change presents one of the most formidable global challenges. This course offers an extensive introduction to the economics of climate change and relevant policy responses which shape societies’ efforts to mitigate the effects of climate change. It explores how the toolkit from economics and finance can be utilised to assess and evaluate carbon management strategies in the realm of climate policy, both from a national and international perspective.
It equips students with the knowledge, skills, and tools to navigate the rapidly evolving climate challenges and contribute to the transition towards a more resilient, inclusive, and sustainable societies, thereby achieving UN’s Sustainable Development Goals (SDGs).
| Study Type | Postgraduate | Level | 5 |
|---|---|---|---|
| Term | Third Term | Credit Points | 15 credits (7.5 ECTS credits) |
| Campus | Aberdeen | Sustained Study | No |
| Co-ordinators |
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The fundamental aims of the course are:
to enable students to apply economic reasoning to issues in climate change;
to enable students to think about climate policy in an economically consistent and creative manner; and
to illustrate how carbon finance, encompassing financial instruments designed to transfer environmental risk and to generate environmental quality, can be leveraged in climate change mitigation.
To enable students to develop a good understanding of how green and sustainable finance may be deployed in the real-world policy or business context.
Climate change represents a significant market failure, wherein the economic system fails to properly account for the environmental costs associated with greenhouse gas emissions as a consequence of unsustainable production and consumption practices. Upon understanding the global public good nature of climate change, students will gain an understanding of the estimation of damage costs from climate change and how this can support the evaluation of climate change mitigation options. Students will learn about the economic challenges surrounding international climate agreements and how this shapes climate mitigation efforts. Alongside the economic underpinnings, students will explore carbon finance, starting from its principles, objectives, and significance in addressing climate-related issues, to the evolving landscape of green and sustainable finance in terms of key trends, and regulatory developments. Students will gain deep understanding about various financial instruments and strategies that can be used in managing environmental change in the context of global warming. It aims to equip students with the knowledge of integrating ESG factors into financing and investment decision-making processes.
The course covers relevant Finance and Economics theories, academic research articles, and government policy initiatives. Throughout the course students will develop a critical understanding of the economics of climate policy and gain an appreciation of the complex financial challenges. By the end of the course, students will be equipped with the knowledge and tools needed to address and assess climate change in relation to sustainability.
| Assessment Type | Summative | Weighting | 15 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback |
2 x MCQ - 7.5% each. Feedback will be provided via MyAberdeen and/or during the seminar. |
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| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Apply | To identify and explain the benefits and limitations of green and sustainable finance and apply this knowledge to support strategic business planning that incorporates sustainable practices. |
| Conceptual | Evaluate | Students will be able to critically evaluate climate policy using the key concepts and tools relevant to carbon finance. |
| Conceptual | Understand | Students will understand the main economic arguments used to assess climate change mitigation options and the distributional implications of climate change and climate change policy. |
| Procedural | Analyse | Students will be able to use basic economic concepts to analyse international cooperation on climate change policy. |
| Procedural | Evaluate | To demonstrate the knowledge and understanding, and the ability to evaluate the role of regulation and industry initiatives (self-regulation) in shaping green and sustainable finance. |
| Assessment Type | Summative | Weighting | 85 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback |
Word count: 2,500-3,00 Feedback will be provided via MyAberdeen. |
|||
| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Apply | To identify and explain the benefits and limitations of green and sustainable finance and apply this knowledge to support strategic business planning that incorporates sustainable practices. |
| Conceptual | Evaluate | Students will be able to critically evaluate climate policy using the key concepts and tools relevant to carbon finance. |
| Conceptual | Understand | Students will understand the main economic arguments used to assess climate change mitigation options and the distributional implications of climate change and climate change policy. |
| Procedural | Analyse | Students will be able to use basic economic concepts to analyse international cooperation on climate change policy. |
| Procedural | Evaluate | To demonstrate the knowledge and understanding, and the ability to evaluate the role of regulation and industry initiatives (self-regulation) in shaping green and sustainable finance. |
There are no assessments for this course.
| Assessment Type | Summative | Weighting | 100 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback |
Take-home exam 2,500 words. Feedback will be provided via MyAberdeen. |
|||
| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
|
|
||
| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Procedural | Evaluate | To demonstrate the knowledge and understanding, and the ability to evaluate the role of regulation and industry initiatives (self-regulation) in shaping green and sustainable finance. |
| Conceptual | Apply | To identify and explain the benefits and limitations of green and sustainable finance and apply this knowledge to support strategic business planning that incorporates sustainable practices. |
| Conceptual | Evaluate | Students will be able to critically evaluate climate policy using the key concepts and tools relevant to carbon finance. |
| Conceptual | Understand | Students will understand the main economic arguments used to assess climate change mitigation options and the distributional implications of climate change and climate change policy. |
| Procedural | Analyse | Students will be able to use basic economic concepts to analyse international cooperation on climate change policy. |
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