ENR-30306 Theories and Models in Environmental Economics

Course

Credits 6.00

Language of instruction:

English

Expected knowledge on:

Advanced Environmental Economics and Policy

Continuation courses:

Thesis Environmental Economics, Economics and management of natural resources; Cost benefit analysis and valuation methods; Capita Selecta environmental economics MSc

Contents:

The course focuses on applied analysis of the relationship between economic activity and environmental problems. Different methodologies of making environmental scenario studies are discussed at an intermediate level. Methodologies that will be dealt with include systems, dynamic optimisation, input-output, computable general equilibrium and game-theoretic modelling.
Some of the major environmental problems, including climate change, cannot be analysed without taking the international aspects into account. Therefore, the course will deal explicitly with the economic theory on international trade and its relation with the environment.
This course provides students the analytical insights and skills to develop and critically evaluate applied environmental-economic models.

Aims:

The main aim of the course is to acquaint students with different methodologies of doing applied research in the field of environmental economics. The students will learn to: - read and understand empirical studies from the literature;
- analyse and evaluate the theoretical background of applied research methodologies;
- make their own scenario studies in GAMS;
- translate environmental-economic problems into mathematical models;
- do (quantitative) policy analysis in the field of environmental-economics;
Note: given the differences in background of the students, they have some freedom in how to write their group paper: some groups with good economic background can build more elaborate environmental-economic models, while other groups focus more on the evaluation of environmental policies.

Activities:

The course consists of lectures, computer practical, self-study and working in small groups on a paper.

Examination:

The examination will be based on a written exam and a paper. Both parts will have to be completed successfully to pass the course.

Literature:

The literature for this course will consist of two readers, made by ENR; one reader will consist mainly of articles from international journals, the other is for the computer modelling.