Year of entry: 2021
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Course unit details:
Economics of Environmental Policy
|Unit level||FHEQ level 7 – master's degree or fourth year of an integrated master's degree|
|Teaching period(s)||Semester 2|
|Available as a free choice unit?||Yes|
To develop students’ intellectual understanding of the economics of public policy issues regarding the protection of the environment.
Students will investigate both conceptual and methodological topics in environmental economics, and consider recent applications in numerous case studies.
On successful completion of this course, students should be able to understand and discuss:
- theory on the economic significance and causes of environmental degradation, including the consideration of market failure, regulatory failure and organisational failures;
- alternative approaches to pollution management, including first-best and second-best solutions and the selection of policy instruments;
- complications for the selection of environmental policy instruments including: dynamic analysis; imperfect information (uncertainty and non-point sources of pollution); sub-optimal firm behaviour; and non-uniformity of pollutants;
- analytical methods (including cost-benefit and cost-effectiveness analysis) to assess the efficiency and effectiveness of alternative environmental policy approaches both ex ante and ex post.
- international environmental issues: transboundary pollution, pollution havens, trade and the environment, environmental Kuznets curve
Topic 0: Introduction and coursework guidance
Topic 1: Causes of environmental problems: market failure, regulatory behaviour, and behavioural failure
Topic 2: Designing environmental policy: first best and second best solution to environmental problems, and the selection of policy instruments
Topic 3: Complications from uncertainty, non-point sources of pollution, and non-uniformity of pollutants
Topic 4: Cost benefit analysis and alternative criteria
Topic 5: international environmental issues: pollution havens, free trade and the environment, and trans-boundary pollution
Teaching and learning methods
|Written assignment (inc essay)||30%|
Callan, Scott J. and Janet M. Thomas (2013), Environmental Economics and Management: Theory, Policy, and Applications (6th Edition), South-Western, International Edition.
Keohane, Nathaniel O. and Sheila M. Olmsted (2016) Markets and the Environment, Washington etc.: Island Press
|Scheduled activity hours|
|Independent study hours|
|Grada Wossink||Unit coordinator|
To take this module you need a background in undergraduate micro economics.
Lecturer: Professor Grada Wossink
Lecture: Wednesday 4pm-6pm,