Markets for Pollution Permits

Code:

2EGA12

Acronym:

MLE

Keywords
Classification	Keyword
OFICIAL	Management Studies

Instance: 2015/2016 - 2S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Master in Environmental Economics and Management

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
EGA	27	Bologna Syllabus since 2012	1	-	7,5	56	202,5
ME	2	Bologna Syllabus	1	-	7,5	56	202,5

Teaching language

Suitable for English-speaking students

Objectives

The knowledge acquired is intended to give students the skills necessary to analyze, discuss and work in the future matters arising from the CO2 market and clean development mechanisms.

The carbon market, especially in Europe, has become one of the most discussed topics in recent years, target of criticism and successive adjustments, focus of research and publications. After being given an insight into the theoretical origins of emissions markets, as well as an overview of the various existing pollution markets, at regional and national levels, and respective operating mechanisms, it is necessary to enable students to evaluate the performance of those markets, according to the objectives for which they were created. The study of the project mechanisms, in particular the Clean Development Mechanism and the grant of allowances and business associated with them, should equip students with the necessary knowledge to take the right decisions in cases that they may face in the future in the course of their professional activity.

Learning outcomes and competences

In this specialization course of the Master in Economics and Environmental Management, the students have access to extensive information about the functioning of markets for emissions, particularly CO2, and their advantages and critical issues. They are encouraged to attend the sessions making their own research and thinking on various central aspects of the subjects taught. The group works carried throughout the semester and the discussions of current issues in the classes, widely valued by the assessing system of the course, should contribute to this end.
Students should thus throughout the semester, solidify knowledge and skills sufficient to undertake any work or professional oriented research who relates to participation in this market and / or the project mechanisms inherent to it, making them able to respond to new challenges in these fields.

Working method

Presencial

Program

1. Previous approaches to the functioning of markets of allowances
2. Markets for pollution permits - characteristics, types, operation, and concrete examples.
3. Climate change, the Kyoto Protocol and CO2 market.
4. The project mechanisms of the Kyoto Protocol (JI and CDM).
5. Functioning of the EU ETS and determinants of prices in carbon markets.
6. The Portuguese case.
7. Current developments.

Mandatory literature

Tietenberg, T.H.; Emissions Trading – Principles and Practice, Resources for the Future, , 2006 (2nd ed.)
Pearce, D. W.; Turner, R. K.; Economics of Natural Resources and the Environment, Harvester Wheatsheaf, 1990
van Kooten, G. Cornelis ; Climate Change Economics: Why International Accords Fail, Edward Elgar Publishing, 2004
Labatt, Sonia; White, Rodney R.; Carbon Finance: the financial implications of climate change, John Wiley & Sons, Inc., Hoboken, New Jersey, 2007

Complementary Bibliography

Intergovernmental Panel on Climate Change; IPCC Fourth Assessment Report:The AR4 Synthesis Report Climate Change 2007 (AR4), IPCC, 2007
United Nations; United Nations Framework Convention On Climate Change, United Nations, 1992
United Nations; Kyoto Protocol To The United Nations Framework Convention On Climate Change, United Nations, 1998

Teaching methods and learning activities

The classes consist in a theoretical exposition of the subjects, accompanied by illustrative examples and practical exercises, so fitting the description of theoretical and practical classes.  
If possible, experts from organizations will be invited to show a practical apllication of the subjects.

keywords

Social sciences > Economics > Management studies > Environmental management
Natural sciences > Environmental science > Global change > Climate change

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Teste	50,00
Trabalho escrito	50,00
Total:	100,00

Eligibility for exams

Requirements:
- In the case of continuous assessment, frequency of at least 70% of classes and a minimum of 6 values in test and/or projects.

Calculation formula of final grade

The assessment components are one test, with a weight of 50%, individual or group works at home or in the class (with a global weight of 50%).
It is possible to give a bonus till 1,0 value for participation in the classes.

It is also possible to choose the final examination, with the necessary theoretical and practical components to evaluate student performance in the course.

Final marke = Test * (50%) + group and/or individual project(s)* (50%) + class participation (till 1 value)

Special assessment (TE, DA, ...)

Special assessment may consist of an oral examination.

Classification improvement

In the case of classification improvement, the works done throughout the semester will not be taken into account

Observations

Other references, more specific and adjusted to each case, will be given, accompanying the subjects taught.