This text on the economics of climate change and climate policy can be used at three different levels - advanced undergraduate, post-graduate and doctoral. It covers the critical issues and clearly identifies the specific sections each level of reader should explore

"The 2015 Paris Accord stated the aim to limit the increase in global mean temperatures to 2°C compared to pre-industrial levels and if possible, keep it down to 1.5°C. Achieving this is possible, but the costs incurred are uncertain and the distribution of costs among nations is indistinct....

Weitzman's Dismal Theorem has that the expected net present value of a stock problem with a stochastic growth rate with unknown variance is unbounded. Cost-benefit analysis can therefore not be applied to greenhouse gas emission control. We use the Generalized Central Limit Theorem to show that...

Introduction: Economics and Environmental Degradation -- Environmental Externalities and Their Internationalization Through Voluntary Approaches -- Monetary Valuation of the Environment -- A Comparison of Environmental Policy Instruments -- International Environmental Problems

Expectations concerning international climate finance have increased considerably. In particular, provisions for international transfer schemes are an important element in the Paris Agreement. Yet, climate finance is not only seen as a tool to efficiently combat global warming, but also to solve...