Introductory description

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. 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: first and second welfare theorems, main market failures in environmental economics; Coase theorem and main Government interventions (e.g., command & control instruments vs. price-based policies); Weitzman quality/quantity controls, with an application to carbon taxes vs carbon market; valuation of environmental policies/amenities (e.g., revealed preferences vs. stated preferences); macroeconomic trends (e.g., the effect of extreme risky events on the financial market); environmental health and pollution damages; pollution and the business cycle; the socioeconomic determinants of health model; environmental justice and residential sorting; defensive investments and adaptive behaviour; environmental gentrification; economics of climate change; and the role of behavioural economics in energy efficiency gaps.

Learning outcomes

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

• Subject knowledge and understanding: Acquire knowledge on how environmental issues affect our economy and health. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Presentation; Policy Brief; Written Critique and Data Assignment.
• Subject knowledge and understanding: Demonstrate knowledge of methods and tools used to value environmental resources. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Presentation; Policy Brief; Written Critique and Data Assignment.
• Subject knowledge and understanding: 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, reading and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Presentation; Policy Brief; Written Critique and Data Assignment.
• Subject knowledge and understanding: Understand the interdisciplinary nature of environmental economics. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Presentation; Policy Brief; Written Critique and Data Assignment.
• Subject-Specific/Professional Skills: Demonstrate research skills, including using the library and internet as information sources. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Presentation and policy brief.
• Subject-Specific/Professional Skills: Communicate knowledge and understanding of key theories, methodological tools and empirical analyses in environmental economics, both verbally and in writing. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Presentation; Policy Brief; Written Critique and Data Assignment.
• Cognitive Skills: Demonstrate critical thinking and problem solving when approaching environmental problems. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Presentation; Policy Brief; Written Critique and Data Assignment.
• Cognitive Skills: Demonstrate creativity to develop policy solutions for environmental problems. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Presentation; Policy Brief; Written Critique and Data Assignment.

Indicative reading list

Key textbooks:
Perman, R., Ma, Y., McGilvray, J., & Common, M. (2003). Natural resource and environmental economics. Pearson Education.
Beckenbach, F., & Kahlenborn, W. (Eds.). (2016). New perspectives for environmental policies through behavioral economics. Springer International Publishing.
Pearce, D.W., (1976). Environmental Economics. Longman: London.
Helm, D. (2015). Natural Capital: Valuing The planet. Yale University Press Publications.
Markandya, A., Harou, P., Bellu, L. G., & Cistulli, V. (2002). Environmental Economics for Sustainable Growth. Edward Elgar Publishing Limited.
Additional readings will be suggested by lecturers during the course.

Subject specific skills

Students will have the opportunity to develop skills in:
Analytical thinking and communication
Analytical reasoning
Critical thinking
Strategic thinking
Problem-solving
Abstraction
Analysis of incentives
Analysis of optimisation
Understanding of Uncertainty and Incomplete Information

Transferable skills

Students will have the opportunity to develop:
Numeracy and quantitative skills
IT skills
Written communication skills
Oral communication skills
Mathematical, statistical and data-based research skills