This course provides an interdisciplinary introduction to climate change and its implications for natural systems, human societies, and economic and policy decision-making. Drawing on expertise from across the University, and with support from Penn Climate, the course integrates perspectives from climate science, economics, finance, law, health, engineering, anthropology, political science, public policy, and communications to examine the causes of climate change, its current and projected impacts, and the range of responses at the individual, organizational, and societal levels. The course offers students from across the university a unique opportunity to acquire a broader perspective on climate change than their respective disciplines would. The course brings together climate experts who will present and engage in discussion with the students and the instructor, who will play an active role as a “host” of each lecture, and provide context and connections across the many disciplines, lead class exercises, give some of the lectures, and supervise student projects.
The financial significance of stakeholder opinions of the acceptability of a firm’s operations and geopolitical risk is mounting, yet the data, frameworks, and tools informing investors, consultants, and corporates are unreliable. The course provides students with novel data, frameworks, and tools that can link and aid in the alignment of stakeholder opinions of corporate impact on natural, social, and human capitals, financial valuation, strategy, and sustainable business. Estimates of the capital expenditures necessary to achieve a net-zero emissions and the 1.5 degrees Celsius global warming target exceed $50 Trillion over the next 30 years. The cost of inaction is, however, much higher, with $10-$25 Trillion dollars in annual losses forecast for GDP from the physical risks of climate change alone. Despite this simple financial calculus, we continue to debate whether climate change is real, and whether policies to achieve a climate transition are justified, and whether the allocation of the costs necessary to do so is fair. Such discussions are made more difficult by the reemergence of geopolitical rivalries between great powers as well as the strengthening of political divisions within many countries. Populism, nationalism, and nativism have moved from the fringes of political systems to the corridors of power. These international and national forces have led to a pause in globalization and increasingly threaten global growth. Which firms or investors are best poised to navigate these risks and seize related opportunities? This course provides students the latest tools to assess and map stakeholder opinions as well as integrate them into financial valuation. It also offers behavioral skills critical for external stakeholder engagement including communications as well as for the engagement of stakeholders inside the firm. In short, it prepares students to engage in geostrategy.
Models are lenses. They are instruments with which we view, interpret, and give meaning to data. In this course, students will be exposed to and do work in all phases of the modeling life-cycle, including model design and specification, model construction (including data gathering and testing), extraction of information from models during post-solution analysis, and creation of studies that use modeling results to support conclusions for scientific or decision making purposes. In addition, the course will cover critical assessments of fielded models and studies using them. The course will focus broadly on models pertaining to energy and sustainability. This is not only an inherently interesting and important area, but it is very much a public one. In consequence, models, data, and studies using them are publicly and profusely available, as is excellent journalism, which facilitates introductions to specific topics. The course covers selected topics in energy and sustainability. Essential background will be presented as needed, but the course is not a comprehensive overview of energy and sustainability. Modeling in the area of energy and sustainability analytics is rife with uncertainty, and yet decisions must be made. Uncertainty, and how to deal with it in model-based decision making, is an overarching theme of the course. We will focus on energy and sustainability, but that area is hardly unique in being beset with deep and vexing uncertainties. The lessons we learn will generalize. The overall aim of the course is to teach facility with modeling and to use real-world data, models, and studies in doing so. In addition, students with interests in investment or policy analysis in the energy sphere will find the course’s subject area focus useful. OIDD 3250 is not a prerequisite for this course, but it’s helpful if you have already taken it.
Over the last several decades, energy markets have become some of the most dynamic markets of the world economy. Traditional fossil fuel and electricity markets have been seen a partial shift from heavy regulation to market-driven incentives, while rising environmental concerns have led to a wide array of new regulations and “environmental markets”. The growth of renewable energy could be another source of rapid change, but brings with it a whole new set of technological and policy challenges. This changing energy landscape requires quick adaptation from energy companies, but also offers opportunities to turn regulations into new business. The objective of this course is to provide students with the economist’s perspective on a broad range of topics that professionals in the energy industry will encounter. Topics include the effect of competition, market power and scarcity on energy prices, the impact of deregulation on electricity and fossil fuel markets, extraction and pricing of oil and gas, geopolitical uncertainty and risk in hydrocarbon investments, the environmental impact and policies related to the energy sector, environmental cap-and-trade markets, energy efficiency, the economics and finance of renewable energy, and recent developments in the transportation sector.
This course examines environmental and energy issues from an economist’s perspective. Over the last several decades, energy markets have become some of the most dynamic markets of the world economy, as they experienced a shift from heavy regulation to market-driven incentives. First, we look at scarcity pricing and market power in electricity and gasoline markets. We then study oil and gas markets, with an emphasis on optimal extraction and pricing, and geopolitical risks that investors in hydrocarbon resources face. We then shift gears to the sources of environmental problems, and how policy makers can intervene to solve some of these problems. We talk about the economic rationale for a broad range of possible policies: environmental taxes, subsidies, performance standards and cap-and-trade. In doing so, we discuss fundamental concepts in environmental economics, such as externalities, valuation of the environment and the challenge of designing international agreements. At the end of the course, there will be special attention for the economics and finance of renewable energy and policies to foster its growth. Finally, we discuss the transportation sector, and analyze heavily debated policies such as fuel-economy standards and subsidies for green vehicles. Prerequisites: An introductory microeconomics course (ECON1, or another course approved by the instructor) will be sufficient in most cases; BEPP 250 or an equivalent intermediate microeconomics course is recommended.
This course provides an introduction to environmental management by focusing on foundational concepts of environmental law and policy and how they affect business decisions. The primary aim of the course is to give students a deeper practical sense of the important relationship between business and the natural environment, the existing legal and policy framework of environmental protection, and how business managers can think about managing their relationship with both the environment and the law.
This course provides an introduction to environmental management with a focus on law and policy as a basic framework. The primary aim of the course is to give students a deeper practical sense of the important relationship between business and the natural environment and to think critically about how best to manage this relationship.
This course explores Impact Investing, a discipline that seeks to generate social benefits as well as financial returns. From tiny beginnings, the Impact Investment space has expanded and now commands significant attention from policymakers, wealthy and public-spirited individuals, academia and, not least, the world’s largest asset managers and philanthropic foundations. Evangelists believe it may be the key to freeing the world from poverty. Skeptics think it will remain confined to the boutique. Regardless, Impact Investing is becoming a distinct career specialization for finance professionals despite the diverse skillset each must have and the uncertainty of the new field’s growth. In addition to prerequisites, FNCE 2050 is recommended but not required.
Climate change represents one of the most urgent threats to humanity’s future. Transforming the global economy to manage this threat will require trillions of dollars in capital, creating unprecedented risks as well as opportunities in financial markets. This course uses the tools of financial economics to understand strategies for managing risks and financing climate technologies across a range of asset classes, including carbon markets, project finance, venture capital, private equity, public equities, fixed income, and real assets. Students will also explore how financing strategies interact with public policy and political risk in both the developed and emerging market contexts. The course concludes with debates on corporate purpose, including what role businesses and financial institutions should play in addressing climate change.
This course aims to engage undergraduate students at Wharton with fundamental questions at the intersection of climate change, environmental management, ethics, and leadership. Important questions we will address include: (1) What can we learn about leadership from being in “the environment” or “the field” that we cannot as easily learn in other settings? (2) What does it mean to be a leader in the area of climate change and environmental management at a for-profit business firm? A non-profit organization? A social enterprise/benefit corporation? Within this overarching theme of environmental and climate leadership, the course examines a concrete set of timely topics through readings, discussions, guest speakers, and written assignments, including: environmental management and a circular economy; product stewardship; extended producer responsibility; environmental personhood; greenwashing; and the different types of firms and organizations in this space, including for-profit corporations, benefit corporations/social enterprises; and non-profits. The course begins with five traditional classroom sessions on these issues with traditional assignments and readings run and graded by Professor Light. The culminating event of the course is a Leadership Venture – an expedition that combines both “being in the environment” and visiting an organization that is engaged in climate and environmental leadership.