Lecture_1
Lecture 1 Module: BUS368 The Political Economy of Global Environmental Change
Course Title: The Political Economy of Global Environmental Change
Module Code: BUS368
Lecturer: Lilit Popoyan (Email: l.popoyan@qmul.ac.uk)
Meeting Schedule: Tuesdays, 16:00-18:00, Peter Landin: PL-302
Course Material: Available online at QMPlus
Office Hours: Tuesdays from 14:30 to 15:30, Room 2.35, Francis Bancroft Building
Position: Lecturer at QMUL, School of Business and Management
Affiliated Researcher: Institute of Economics, Scuola Superiore Sant’Anna, Italy
Lecturer in Money and Banking: New York University (NYU)
Research Interests:
Monetary Economics
Financial Regulations
Macro-prudential Policy and Systemic Risk
Climate Change and Economic Dynamics
Main Aim: Understand climate-economy interactions
Research Questions:
Present and future economic impacts of climate change?
Macro-financial implications of low-carbon transition?
Optimal climate mitigation/adaptation strategies?
Functional Objectives:
Expand knowledge on empirical evidence, theories, and key facts
Familiarize with current scientific/policy research focused on climate and economic transition
Develop an original critical analysis
Introduction and big picture on Climate Change and Economic System (W1)
Drivers, impacts, and scenarios of Climate Change (W2)
Socio-economic impact of Climate Change scenarios (W3)
Decarbonization of the global economic system (W4)
Climate-related policies and commitments (W5)
Climate-related financial risks (W6)
Climate-related macro-financial risks (W8)
Climate change and the monetary system (W9)
Just transition with a guest lecturer (W10)
Policy institutions addressing Climate Change (W11)
Structure: Eleven 2-hour frontal lectures (Lecture 11: online review session)
Practice Quizzes and Exam Sessions to prepare for assessments
Exams:
Midterm Exam: In-class (30 minutes), TBD, contributes 30% to final evaluation
Final Exam: In-class (2 hours written), TBD, contributes 70% to final evaluation
Attend classes as content is key to passing
Participation encouraged: Diversity enriches learning
Keep questions and comments interactive
Arrive on time: Lectures start/end punctually
Maintain focus: Limited use of laptops for note-taking only, no mobile phones
No specific textbook, but suggested readings:
Economides et al., (2018) - "The Economics of Climate Change" (free on QMPlus)
Tol, R. (2019) - "Climate Economics", 2nd edition (QMPlus)
Keohane and Olmstead (2016) - "Markets and the Environment", 2nd edition (QMPlus)
Key Reading: IPCC Assessment Report 6
Produced by UN Intergovernmental Panel on Climate Change (IPCC)
Aims to assess knowledge on climate change and societal responses
Key Features:
Overarching periodic Assessment Reports (first in 1990, latest AR6 - 2021-22)
Three Working Groups:
WGI: Physical science of climate change
WGII: Climate impacts and adaptation options
WGIII: Climate mitigation options
Each group publishes:
Summary for Policy-Makers (SPM)
Technical Summary (TS)
Full report with focused chapters
What comes to mind regarding "climate change"?
What are perceived main causes of climate change?
How does climate change impact global economies and societies?
Climate System Definition: Interconnected system including atmosphere, water, ice, land, and ecosystems
Existence and evolution precede human activity
Rapid changes observed, primarily anthropogenic in origin
Climate Definition (IPCC AR6): Mean statistical description over 30 years, encompassing variability
Temperature: Mean global temperature, changes relative to baseline, GHG impact on energy balance
Greenhouse Gas Concentrations: Key GHGs include CO2, CH4, N2O; affects warming
Hydrological Dynamics: Precipitation patterns, extreme weather events necessary for life
Methods:
Paleoclimatology using tree rings, sediments, etc.
Instrumental observation (surface, weather balloons, satellites)
Dynamic modeling for future projections (CMIP)
Recent decades show rapid changes: Unprecedented temperature increases (1.09°C since 1850-1900)
Other changes include sea level rise, increased extreme weather
Policy consensus: Limit warming to below 1.5-2°C
Growth in GHG emissions primarily from human activities
Major sources of GHGs: CO2 from fossil fuels, CH4 from livestock and waste, N2O from fertilizers
Infrastructure developments (e.g., sea walls)
Market adaptation (business relocations)
Government investment in adaptation infrastructure
Many adaptation measures have long-term viability issues
Adaptation alone insufficient; emission reductions are essential
Goal: Achieve atmospheric GHG stabilization
Main strategies include:
Reducing emissions
Sequestering GHGs (natural and technological methods)
Shift from carbon-based energy to carbon-free technologies
Examples: Transition from coal to solar, gasoline to electric vehicles
Historical precedents exist, but urgency and societal factors complicate transition
Legal/regulatory frameworks needed to guide transition
Encouragement of behavioral changes in consumption, investments
Essential focus on carbon pricing and financial policies
Possible disruptions for firms/countries reliant on fossil fuels
Potential financial instability; research focus on transition risk
Involvement of climate scientists, economists, and multi-disciplinary teams
Central banks and financial authorities emerging as key players in climate finance
Investigate socio-economic impacts, financing low-carbon transitions, effective policies
Utilize methods such as econometrics and behavioral analysis
Interplay between economic activities and climate dynamics impacting broader societal functions
Explore investment patterns in capital stock vs R&D
Consider uncertainty and various economic perspectives during decision-making
External financing is crucial for facilitating green investments
Various actors play significant roles in capital flows and investment strategies
Complex but crucial questions on climate adaptation/mitigation and economic viability
Emphasize interdisciplinary research and remain engaged in course materials
Upcoming Lecture: Drivers, Impacts, Scenarios of Climate Change
For inquiries, contact: I.popoyan@qmul.ac.uk
Lecture 1 Module: BUS368 The Political Economy of Global Environmental Change
Course Title: The Political Economy of Global Environmental Change
Module Code: BUS368
Lecturer: Lilit Popoyan (Email: l.popoyan@qmul.ac.uk)
Meeting Schedule: Tuesdays, 16:00-18:00, Peter Landin: PL-302
Course Material: Available online at QMPlus
Office Hours: Tuesdays from 14:30 to 15:30, Room 2.35, Francis Bancroft Building
Position: Lecturer at QMUL, School of Business and Management
Affiliated Researcher: Institute of Economics, Scuola Superiore Sant’Anna, Italy
Lecturer in Money and Banking: New York University (NYU)
Research Interests:
Monetary Economics
Financial Regulations
Macro-prudential Policy and Systemic Risk
Climate Change and Economic Dynamics
Main Aim: Understand climate-economy interactions
Research Questions:
Present and future economic impacts of climate change?
Macro-financial implications of low-carbon transition?
Optimal climate mitigation/adaptation strategies?
Functional Objectives:
Expand knowledge on empirical evidence, theories, and key facts
Familiarize with current scientific/policy research focused on climate and economic transition
Develop an original critical analysis
Introduction and big picture on Climate Change and Economic System (W1)
Drivers, impacts, and scenarios of Climate Change (W2)
Socio-economic impact of Climate Change scenarios (W3)
Decarbonization of the global economic system (W4)
Climate-related policies and commitments (W5)
Climate-related financial risks (W6)
Climate-related macro-financial risks (W8)
Climate change and the monetary system (W9)
Just transition with a guest lecturer (W10)
Policy institutions addressing Climate Change (W11)
Structure: Eleven 2-hour frontal lectures (Lecture 11: online review session)
Practice Quizzes and Exam Sessions to prepare for assessments
Exams:
Midterm Exam: In-class (30 minutes), TBD, contributes 30% to final evaluation
Final Exam: In-class (2 hours written), TBD, contributes 70% to final evaluation
Attend classes as content is key to passing
Participation encouraged: Diversity enriches learning
Keep questions and comments interactive
Arrive on time: Lectures start/end punctually
Maintain focus: Limited use of laptops for note-taking only, no mobile phones
No specific textbook, but suggested readings:
Economides et al., (2018) - "The Economics of Climate Change" (free on QMPlus)
Tol, R. (2019) - "Climate Economics", 2nd edition (QMPlus)
Keohane and Olmstead (2016) - "Markets and the Environment", 2nd edition (QMPlus)
Key Reading: IPCC Assessment Report 6
Produced by UN Intergovernmental Panel on Climate Change (IPCC)
Aims to assess knowledge on climate change and societal responses
Key Features:
Overarching periodic Assessment Reports (first in 1990, latest AR6 - 2021-22)
Three Working Groups:
WGI: Physical science of climate change
WGII: Climate impacts and adaptation options
WGIII: Climate mitigation options
Each group publishes:
Summary for Policy-Makers (SPM)
Technical Summary (TS)
Full report with focused chapters
What comes to mind regarding "climate change"?
What are perceived main causes of climate change?
How does climate change impact global economies and societies?
Climate System Definition: Interconnected system including atmosphere, water, ice, land, and ecosystems
Existence and evolution precede human activity
Rapid changes observed, primarily anthropogenic in origin
Climate Definition (IPCC AR6): Mean statistical description over 30 years, encompassing variability
Temperature: Mean global temperature, changes relative to baseline, GHG impact on energy balance
Greenhouse Gas Concentrations: Key GHGs include CO2, CH4, N2O; affects warming
Hydrological Dynamics: Precipitation patterns, extreme weather events necessary for life
Methods:
Paleoclimatology using tree rings, sediments, etc.
Instrumental observation (surface, weather balloons, satellites)
Dynamic modeling for future projections (CMIP)
Recent decades show rapid changes: Unprecedented temperature increases (1.09°C since 1850-1900)
Other changes include sea level rise, increased extreme weather
Policy consensus: Limit warming to below 1.5-2°C
Growth in GHG emissions primarily from human activities
Major sources of GHGs: CO2 from fossil fuels, CH4 from livestock and waste, N2O from fertilizers
Infrastructure developments (e.g., sea walls)
Market adaptation (business relocations)
Government investment in adaptation infrastructure
Many adaptation measures have long-term viability issues
Adaptation alone insufficient; emission reductions are essential
Goal: Achieve atmospheric GHG stabilization
Main strategies include:
Reducing emissions
Sequestering GHGs (natural and technological methods)
Shift from carbon-based energy to carbon-free technologies
Examples: Transition from coal to solar, gasoline to electric vehicles
Historical precedents exist, but urgency and societal factors complicate transition
Legal/regulatory frameworks needed to guide transition
Encouragement of behavioral changes in consumption, investments
Essential focus on carbon pricing and financial policies
Possible disruptions for firms/countries reliant on fossil fuels
Potential financial instability; research focus on transition risk
Involvement of climate scientists, economists, and multi-disciplinary teams
Central banks and financial authorities emerging as key players in climate finance
Investigate socio-economic impacts, financing low-carbon transitions, effective policies
Utilize methods such as econometrics and behavioral analysis
Interplay between economic activities and climate dynamics impacting broader societal functions
Explore investment patterns in capital stock vs R&D
Consider uncertainty and various economic perspectives during decision-making
External financing is crucial for facilitating green investments
Various actors play significant roles in capital flows and investment strategies
Complex but crucial questions on climate adaptation/mitigation and economic viability
Emphasize interdisciplinary research and remain engaged in course materials
Upcoming Lecture: Drivers, Impacts, Scenarios of Climate Change
For inquiries, contact: I.popoyan@qmul.ac.uk