Societies are facing several challenges to deal with the negative effects of climate change. One of the main challenges is to identify tools that induce agents in the economy to reduce pollution and, thus, ameliorate the impact of climate change.
Game theory is a well-known tool that helps us rationalize the decision-making process of agents and anticipate the effects of different policies promoting green practices.
The European Union has implemented several policies, for instance, emission fees, subsidies of electric cars or subsidies of renewable energy, to promote a more sustainable economy and, ultimately, reduce emissions. The main question is: how do policies affect agents’ behavior in the economy? Will firms invest more in green technologies? Will individuals acquire more electric cars? Are these policies welfare-improving? Do firms have more incentives to greenwash?
The course examines these questions by, first, presenting the main concepts in game theory and, second, examining applications that describe the decision-making process of regulators, firms, and consumers when facing environmental problems.
Exam info and full course description can be found in the course catalogue.
Course specific:
To apply for the course, you must have passed a Bachelor's degree in Business Economics, Business Administration, or an equivalent degree.
Furthermore, intermediate microeconomics is highly recommended, as well as intermediate calculus and algebra.
General:
Exchange students: nomination from your home university
Freemovers: documentation for English Language proficiency
You can read more about admission here.
Ana Espinola-Arredondo has a Ph.D. in Economics from the University of Pittsburg and is currently a pofessor at Washington State University. Her main interests are Environmental Economics, Game Theory, Industrial Organization, and Applied Microeconomics.