Course Catalog & Schedules Course Search > Search Results > Course Description Environmental Finance (FINC-930-A) 0.50 Credit Description: This course counts toward the following majors: Analytical Finance, Finance, Social Enterprise. The last decade of the twentieth century witnessed the convergence of environmental and capital markets. Market-based mechanisms such as emissions trading have become widely accepted as a cost-effective method for addressing environmental concerns, especially as societies move towards a carbon-constrained future. These mechanisms also have potential benefits to address issues in other pressing matters such as water quality, fisheries and biodiversity protection. The purpose of this course is to explore environmental finance from a public policy viewpoint and to examine the implications for financing corporations. We will discuss an appropriate public policy based on the concept of public goods and market failure. Macroeconomic policies of taxation and regulation will be considered as well as environmental goals for both governments and individual firms. The historical evolution and current developments of market-based mechanisms to address environmental issues will be carefully analyzed. Special attention will be given to the analysis of the cap-and-trade program on sulfur dioxide (SO2) established by the Clean Air Act of 1990 and the SO2 OTC market and the allowance auctions at the Chicago Board of Trade. A significant part of the course material will be devoted to discussion of the emerging market for greenhouse gases emissions trading, both in the U.S. and abroad. Other environmental markets (for smog, water quality and biodiversity) will also be featured. Lectures will deal with environmental regulation and the implications for business. The role of the corporation in the formation of environmental policy and negotiating environmental standards provide the basis for discussion of how to develop a general competitive strategy for businesses. The use of hedging devices for pollution and energy will be among specific business strategies discussed. The final part of the course will be devoted to an in-depth discussion of issues related to the inter-relationship between environmental and financial performance and the implications for a corporation's risk management. The course will focus on the proliferation of stock indices, the growth of sustainable investing and the impact that sustainability issues may have on stock performance and bond ratings. The course will also draw on lectures by guests with expertise in environmental finance and economics from both the private and public sectors. Prerequisites: All Students: FINC-430-0 OR FINC-440-0 Corequisites: None

We are currently in the Fall 2009 quarter.

Academic Year: 2009-2010 Quarter: Fall 2009 This course has not yet been scheduled.   Academic Year: 2009-2010 Quarter: Winter 2010 This course has not yet been scheduled.   Academic Year: 2009-2010 Quarter: Spring 2010 This course has not yet been scheduled.   Academic Year: 2009-2010 Quarter: Summer 2010 This course has not yet been scheduled.

* indicates Sections where First Session is Mandatory.

+ indicates Sections with Second Year Preference.

Please send questions to kellogg-registrar@kellogg.northwestern.edu .