Carbon Pricing

Carbon pricing has become a central tool in global climate policy, with over 70 jurisdictions implementing carbon taxes or emissions trading systems that now cover more than one quarter of global emissions. This course explores how carbon markets and taxes are designed, reformed, and evaluated, using real-world case studies from Europe, the Americas, Asia, and beyond.

Students will engage with a structured, step-by-step framework for designing effective carbon pricing policies across sectors, including energy, transportation, industry, and land use. The course examines market-based mechanisms such as cap-and-trade, carbon taxes, and crediting programs, along with emerging policy innovations and debates around integrity and equity.

Topics include carbon border adjustments, voluntary markets, the role of carbon pricing in trade, investment, and corporate climate strategies, and the intersection of pricing with complementary policies. Students will assess existing policies, model policy impacts, and develop informed policy proposals.

While the class is suitable for a broad range of backgrounds and has no required prerequisites, the ideal preparation includes INAF U6071/CEEN IA7200 - Environmental Economics and Policy or another introductory course in environmental economics and policy.