Introductory description

Building on the introductory environmental economics module, this module will provide a brief introduction to the meaning and scope of environmental economics. It will then outline key theoretical and methodological tools to study how to evaluate and manage natural resources in developing/developed countries. Key policy instruments to deal with contemporary environmental problems, such as climate change, sustainable development and pollution will be discussed offering an overview of the behavioural responses to environmental conservation and protection. The module will finally look at the linkage between environmental health and (in)justice to outline policy instruments and cutting-edge research that work towards improved justice and sustainability in the environmental health arena.

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The syllabus may cover but is not limited to the following topics:
(1) Key concepts in Environmental Economics: Welfare Economics and the Environment.
(2) The origins of the sustainability problem: ethics, economics and the environment.
(3) Environmental Pollution: Regulation.
(4) Environmental Pollution: Pricing Policies.
(5) International environmental problems: game theory analysis, international environmental cooperation, and climate change.
(6) Behavioural Economics of Climate Change.
(7) Trade and the environment.
(8) Project appraisal (e.g., cost-benefit analysis, irreversibility, risk and uncertainty, valuing the environment -i.e., contingent valuation, choice experiments, travel cost methods, and hedonic pricing).
(9) Natural Resource Exploitation: renewable vs non-renewable resources (e.g., optimal use of natural resources, optimal resource extraction, and renewable resources and renewable resources policy).
(10) Environmental health and environmental justice.
(11) Environmental impact of energy (e.g., different sources of energy, the role of energy in climate change, energy demand modelling, energy efficiency-carbon intensity, crude oil market, natural gas market, transition to green economy, and the role of nuclear energy).

Learning outcomes

By the end of the module, students should be able to:

• Understand the rationale for the study of environmental economics and its interdisciplinarity. The teaching and learning methods that enable students to achieve this learning outcome are lectures, seminars, independent study and reading.
• Evaluate the main controversies in mainstream economics in the environmental realm. The teaching and learning methods that enable students to achieve this learning outcome are lectures, seminars, independent study.
• Understand the methods and tools available to value environmental resources. The teaching and learning methods that enable students to achieve this learning outcome are lectures, seminars, independent study and reading.
• Demonstrate knowledge and understanding of economic arguments to discuss environmental policy proposals and solutions. The teaching and learning methods that enable students to achieve this learning outcome are lectures, seminars, independent study and reading.
• Understand how agents (i.e. individuals, firms, government) decisions and market forces can affect the environment. The teaching and learning methods that enable students to achieve this learning outcome are lectures, seminars, independent study and reading.

Indicative reading list

Daly, H. & Farley, J. (2011). Ecological Economics: Principles and Applications. Island Press.

Markandya, A., Harou, P., Bellu, L. G., & Cistulli, V. (2002). Environmental economics for sustainable growth: A handbook for practitioners. Edward Elgar Publishing Ltd.

Perman, R., Ma, Y., McGilvray, J., & Common, M. (2003). Natural resource and environmental economics. Pearson Education.

Udalov, V. (2019). Behavioural Economics of Climate Change: New Empirical Perspectives. Springer.

Zweifel, P. Z., Praktiknjo, A. P., & Erdmann, G. E. (2017). Energy Economics: Theory and Applications. Springer.

Subject specific skills

Students will have the opportunity to develop skills in:
Analytical thinking and communication
Analytical reasoning
Critical thinking
Creative thinking
Strategic thinking
Problem-solving
Abstraction
Policy evaluation
Analysis of institutions
Analysis of incentives

Transferable skills

Students will have the opportunity to develop:
Research skills
Numeracy and quantitative skills
Data-based skills
IT skills
Written communication skills
Oral communication skills
Professional skills
Global Citizenship and Sustainability skills
Team work and working effectively with others skills
Mathematical, statistical and data-based research skills