ENR-21306 Environmental Economics for Environmental Sciences

Course

Credits 6.00

Teaching methodContact hours
Individual Paper1
Lecture24
Tutorial12
Course coordinator(s)Doctor Sampo Pihlainen
Lecturer(s)JMJ Delnoij
Doctor Sampo Pihlainen
Examiner(s)Doctor Sampo Pihlainen

Language of instruction:

EN

Assumed knowledge on:

As a background, ENP-10806 Environmental Policy Instruments or some basic understanding of (micro-) economic theory would be useful, but not mandatory. However, knowledge of basic mathematic calculus  (e.g. MAT-14803, but this is also covered in many high schools) is strongly recommended.

Continuation courses:

AEP-32306 Cost Benefit Analysis and Environmental Valuation;
ENR-31306 Economics and Management of Natural Resources;
YSS-35306 Theories and Models in Economics.
ENP-32306 Advanced Environmental Economics and Policy.

Contents:

Note: This course can not be combined in an individual programme with ENR-20306 Environmental Economics and Environmental Policy.

The course provides an introduction to environmental economics and is developed for students of non-economic study programmes. It is also suitable as an introduction to environmental economics for students of economic study programmes. The aim of the course is to show how environmental problems can be approached and analysed using economic theory. Furthermore, the course demonstrates how economics provides guidance to address serious environmental problems such as global warming, ozone depletion, air and water pollution at different scales (global, regional). In particular, the course will establish the foundations of environmental economics. The students will learn how markets function and under which conditions markets fail, giving rise to a misallocation of resources causing environmental problems. These insights will then be used to analyse how policy interventions can correct market failure and enhance social welfare.

Learning outcomes:

After successful completion of this course students are expected to be able to:
- explain the theoretical foundations of environmental economics;
- explain key concepts, strengths and limitations of environmental economic analysis (e.g. sustainability, efficiency, Pareto optimality, market failure, externalities);
- analyse important environmental problems (e.g. pollution) from an economic point of view;
-  explain key economic instruments and policy measures for solving economic problems (e.g. taxes, subsidies, tradable permits) on an international scale;
- apply economic concepts a specific case in the domain of environmental economics;
- compile and structure information about a topic in environmental economics for writing a scientific essay.

Activities:

The course consists of classroom lectures and  tutorials, including two computer tutorials. The economic concepts introduced in the lectures are applied to a number of case studies of important environmental issues and environmental problems such as, for example, pollution control. To deepen the understanding of economic concepts students will have to work on assignments during tutorials. The aim of the assignments is to practice with the theories and methods acquired during the lectures. In addition, students write a case study report (individual paper) about an environmental economics and policy topic. The aim is learn how to apply the acquired theoretical knowledge to selected environmental economics and policy issues, how to compile and structure information and to learn scientific working skills. Students are expected to attend all lectures and tutorials and to prepare themselves by studying the reading material prior to the lectures.

Examination:

- written exam (60%);
- group Assignments (20%);
- individual paper (20%).

In order to pass the course, it is necessary to receive at least a grade 5.5 for all three parts.

Literature:

Perman, R., Y. Ma, J. McGilvray, and M. Common (2011): 'Natural Resource and Environmental Economics', 4th ed., Pearson Education, Harlow. Additional material will be announced in the course guide.

ProgrammePhaseSpecializationPeriod
Compulsory for: BESEnvironmental SciencesBScA: Spec. A - Environmental Policy and Economics5AF
Restricted Optional for: MESEnvironmental SciencesMScB: Spec. B - Environmental Policy and Economics2MO, 5AF
MUEUrban Environmental ManagementMSc2MO
MCLClimate StudiesMScE: Spec. E - Climate, Society and Economics2MO
MinorPeriod
Compulsory for: WUESDBSc Minor Economics of Sustainable Development2MO