Introductory description

Environmental economics studies how economic activity and policy may affect the environment in which we live. This course provides students with theoretical and methodological tools that allow them to apply principles of economics to study how natural resources are (or should be) evaluated and managed. Contemporary environmental problems, such as climate change, sustainable development and transboundary pollution are discussed in light of the concepts introduced in the first part of the course.

Module web page

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 core topics in the syllabus will typically include:

1. Introduction to the key concepts from environmental economics: markets; market failures; government regulation; Cost Benefit Analysis; the environment as a social asset
2. Strategic interactions: Coase Theorem; Tragedy of the Commons; Transactions costs and institutions
3. Valuing the environment: Welfare economics; efficiency and optimality in allocation; approaches to environmental evaluation; environmental ethics; sustainable development
4. Environmental policy instruments and implementation: common and control policies in different areas e.g. water; policy design and implementation; biodiversity; trade
5. Applications: deforestation; tropical deforestation and poverty; preservation and conservation; climate change; carbon trading; international co-operation; Kyoto Protocol

Learning outcomes

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

• Subject-Specific/Professional Skills:...demonstrate an ability to research relevant topics, including using the library and internet as information sources.
• Subject knowledge and understanding:...demonstrate knowledge of the main tools used to value environmental goods and services.
• Subject knowledge and understanding:...use economic arguments to discuss environmental policy proposals.
• Subject-Specific/Professional Skills:...communicate their knowledge and understanding to others, verbally and in writing.
• Subject-Specific/Professional Skills:...review the literature within environmental economics and be able to apply it accordingly.
• Subject-Specific/Professional Skills:...understand the interdisciplinary nature of environmental economics.
• Cognitive Skills:...demonstrate an understanding of the importance of critical thinking and problem solving when approaching environmental problems.
• Cognitive Skills:...think creatively to develop policy solutions for the environment.
• Subject knowledge and understanding:... apply fundamental concepts such as market failure, household behaviour, transaction costs and willingness to pay to the study of environmental economics.
• Subject knowledge and understanding:...understand key concepts used by environmental economists and political scientists and how they can be applied to policy.

Indicative reading list

Reading lists can be found in Talis

Specific reading list for the module

Subject specific skills

Applied Economics
Economic information
Economic principles
Research and debate
Abstraction
Analysis of incentives
Analysis of institutions
Analytical reasoning
Analytical thinking and communication
Creative thinking
Critical thinking
Policy evaluation
Problem solving
Strategic thinking
Sustainability

Transferable skills

Data-based skills
IT skills
Numeracy and quantitative skills
Research skills
Information technology
Math, Statistical, data-based research skills
Oral communication
Team work skills
Written communication