Applied economic modeling of environmental issues using GAMS

5 credits

Marking scale: Pass / Failed
The requirements for attaining different grades are described in the course assessment criteria which are contained in a supplement to the course syllabus. Current information on assessment criteria shall be made available at the start of the course.

Prerequisites:
Equivalent of three semesters of undergraduate studies in economics. This course is intended for students both on the Masters and PhD level. Student’s final assignment and grading will depend on whether the student is taking the course at the Masters or PhD level.

Objective:
This course focuses on the applied analysis of the relationship between economic activity and environmental issues. Computer modelling can help researchers and policymakers better understand the relation between environmental pressures and the economy. Different types of economic models and modelling techniques will better fit certain problems one wishes to study. This course will cover various techniques such as linear programming, partial equilibrium modelling, input/output modelling, computable general equilibrium modelling and neo-classical growth modelling. Through examples of various environmental problems (e.g. climate change, pesticide, pollution) different approaches will be discussed. In the lectures different theoretical models will be introduced and discussed using academic papers. In the practicals students will build applied models using GAMS.

This course provides students the analytical insights and skills to develop and critically evaluate applied environmental-economic models. The skills developed can be used to apply within their own field of research. Students need no previous knowledge of computer modelling, but will benefit from prior environmental economic knowledge.


The main aim of the course is to acquaint students with different methodologies of doing applied research in the field of environmental economics. The students will learn to

• read and understand empirical studies from the literature;
• analyse and evaluate the theoretical background of applied research methodologies;
• make their own scenario studies in GAMS;
• translate environmental-economic problems into mathematical models;  
• do (quantitative) policy analysis in the field of environmental economics.

Content

• lectures (8% of time: 10 hours)
•  class discussions (4% of time: 5 hours),
• discussing a selection of articles)
• self-study (16% of time: 20 hours)
• computer practicals (20% of time: 25 hours)
• assignment (50% of time: 65 hours)

Examination:
The grade for the course will be determined based on:
the case study, including the case study report or assignment (70%).
the discussion articles in the reader (30%).

Additional information
The teacher of the course is Kelly de Bruin at CERE kelly.de.bruin@econ.umu.se. For students who whish to have deeper knowledge in GAMS, the “Advanced case study in applied economic modeling of environmental issues using GAMS, is offered in direct conjunction to this course.  

Location
Umeå