363-1137-00L  Applied Econometrics in Environmental and Energy Economics

Courses

Catalogue data

Abstract	The course introduces to the most common empirical methods for the analysis of issues in environmental, energy, and resource economics. The course includes computer laboratory sessions, and covers the following broad topics: demand models, discrete choice models, empirical methods in policy evaluation, field- and quasi-experiments.
Learning objective	At the end of the course, the students will be able to: understand the most common empirical methodologies used in environmental, energy, and resource economics; understand the problems the methodologies learnt in class aim to address; appreciate the importance of causal inference in empirical economics; read and understand the research papers in the literature; apply the empirical methods learnt in class using the software R.
Content	The course introduces students to empirical statistical methods that have wide application in environmental, energy, and resource economics and it is divided in four blocks. The first block is a quick review of the basic econometric methodology and concepts (OLS, standard errors, logit/probit models); the second block introduces demand models like the Almost Ideal Demand System, discrete choice models, and their evolutions; the third block explores causal inference in empirical economics and the main reduced-form econometric techniques used in policy evaluation, such as difference-in-differences, regression discontinuity and synthetic control; the fourth block introduces field experiments and instrumental variables, and their characteristics. At the end of each block there will be a computer laboratory class in which the student will learn to apply the methodologies learnt in class using the statistical open-source software R. Throughout the course, students will have the chance to work on actual data used for analysis in economics papers. The lectures will make use of current research papers in the literature to illustrate practical examples in which the methodologies learnt in class have been used. Students will be expected to read in advance the paper that will be explained during the lecture. The evaluation policy has the aim to allow students to get practical experience on the econometric methodologies learnt in class. Thus, beyond a final open-book computer exercise exam {60% of the grade), the course includes short take­home computer exercises {40% of the grade). As the course will be centered on econometric methods, it is recommended that students have taken 363-0570-00L Principles of Econometrics first, or have otherwise a solid knowledge of basic econometric methodologies as detailed in Part 1 of Wooldridge, Jeffrey M. (2018) lntroductory Econometrics : A Modern Approach. Seventh ed. ISBN: 978-1-337-55886-0. Knowledge of statistical software R is helpful, but not required and will be taught in the computer laboratory sessions.
Prerequisites / Notice	It is highly recommended to take 363-0570-00L Principles of Econometrics first.
Competencies	Subject-specific Competencies Concepts and Theories assessed Techniques and Technologies assessed Method-specific Competencies Analytical Competencies assessed Problem-solving assessed Personal Competencies Adaptability and Flexibility fostered Creative Thinking assessed Critical Thinking assessed Integrity and Work Ethics fostered Self-direction and Self-management assessed

Performance assessment

Performance assessment information (valid until the course unit is held again)
Performance assessment as a semester course
ECTS credits	3 credits
Examiners	S. Srinivasan
Type	graded semester performance
Language of examination	English
Repetition	Repetition only possible after re-enrolling for the course unit.
Additional information on mode of examination	40% home computer exercises and 60% final computer lab examination (open book).
Digital exam	The exam takes place on devices provided by ETH Zurich.

Learning materials

Groups

Restrictions

Offered in

Programme	Section	Type
Agricultural Sciences Master	Methods in Agricultural Economics	W
Energy Science and Technology Master	Energy Economics and Policy	W
Management, Technology and Economics Master	Economic Dynamics	W