Carbon Markets and Global

Carbon markets have become a central tool in global efforts to reduce greenhouse gas emissions. This course explores the economics, institutions, and pricing mechanisms that shape these markets, providing students with a fundamental description and analysis of emissions trading systems (ETS), carbon taxes, voluntary carbon markets, internal carbon transfer pricing and emerging financial instruments. Beginning with microeconomic foundations such as externalities and market-based climate policies, students will analyze the role of international organizations and regulatory frameworks, including the Paris Agreement, the Kyoto Protocol, and regional policies like the EU Green Deal, the California carbon market and RGGI. Through real-world case studies, students will evaluate carbon pricing mechanisms across jurisdictions and industries, gaining the analytical skills necessary to assess policy effectiveness and market integrity. Designed for graduate students in environmental economics, public policy, sustainability, and finance, this course is particularly relevant for those pursuing careers in climate policy, carbon finance, and international development. This course serves as a critical component of the environmental policy and sustainability curriculum, bridging economic theory with practical policy implementation. By integrating key concepts from environmental economics, climate governance, and financial markets, it reinforces students’ understanding of how carbon pricing aligns with broader sustainability goals. Additionally, the course supports programmatic objectives by equipping students with the technical expertise and policy fluency needed to navigate and shape carbon markets. Whether students aim to work in governmental agencies, international organizations, or private-sector sustainability roles, this course provides the necessary foundation to engage with one of the most dynamic areas of climate policy.