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MSc Economics

Year of entry: 2020

Course unit details:
Non-Market Valuation

Unit code ECON60422
Credit rating 15
Unit level FHEQ level 7 – master's degree or fourth year of an integrated master's degree
Teaching period(s) Semester 2
Offered by Economics
Available as a free choice unit? Yes

Overview

 

 

Aims

Aims The aim of this course is to develop foundations and techniques for non-market valuation for environmental amenities and health outcomes. The first half of the course will be spent on revealed preference methods including value of statistical life, hedonic models, sorting models. The second half section of the course covers stated preference methods including contingent valuation and discrete choice experiments. The cover will cover and discuss empirical examples such as epidemiology, economics of climate change, irrigation water and food safety.

Learning outcomes

  • By the end of the course students will be able to
  • (1) demonstrate the concept and empirics of non-market valuation techniques,
  • (2) apply these techniques in STATA,
  • (3) use these techniques to form your own research agenda.

Syllabus

 

Lecture 1: Valuing Health Risks; Value of Statistical Life

Lecture 2: Air Pollution, Epidemiology and Applying Valuation to Policy Making

Lecture 3-5: Property Values and Sorting Models; Hedonics

Lecture 6: Stated Preferences & The Contingent Valuation Method

Lecture 7-8: Discrete Choice Experiments

 

Teaching and learning methods

Lectures and tutorials

Assessment methods

Method Weight
Other 50%
Written assignment (inc essay) 50%

2 pieces of assessed coursework weighted at 50% each.

Hedonic Project - 50%

Choice Experiment Project - 50%

Recommended reading

Main Texts:

A. Myrick Freeman III, Joseph A. Herriges and Catherine L. Kling, 2014. The Measurement of Environmental and Resource Values, RFF Press and Taylor & Francis (3rd Edition). [Denoted FHK]

            This book is available as an ebook via Rylands Library.

Daniel J. Phaneuf and Till Requate. 2017. A Course in Environmental Economics, Cambridge University Press. [Denoted PR]     

(*) denotes required readings. Students are expected to read them thoroughly.

Students are expected to understand a working knowledge of intermediate level of applied econometrics [Instrumental Variables, Panel Data Methods and Multinomial Models.]. Slides will be provided to students to refresh their memory. Below are three recommendations if students prefer to read relevant books:

Angrist, Joshua D. and Jörn-Steffen Pischke. (2009) Most Harmless Econometrics: An Empiricist’s Companion, Princeton University Press: Ch.1-5. [Does not contain materials on Multinomial Models.]

Verbeek, Marno. (2012) A Guide to Modern Econometrics (4th edition, or any other edition), John Wiley & Sons: Ch.5-7,10.

Wooldridge, Jeffrey M. (2013) Introductory Econometrics: A Modern Approach (Europe, Middle East & Africa Edition, or any other edition), Cengage Learning: Ch.13-17.

 

 

Study hours

Scheduled activity hours
Lectures 18
Tutorials 10
Independent study hours
Independent study 122

Teaching staff

Staff member Role
Daniel Rigby Unit coordinator
Hei Sing Chan Unit coordinator

Additional notes


Pre-Requisite: Intermediate Microeconomics and Econometrics

Timetable
Lecture: Monday 10am-12pm,

Tutorial: Thursday 2pm - 4pm.

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