BSc Economics

The aim of this module is to introduce students to how environmental problems are conceptualised within economic theory, and how that conceptualisation tracks through to the design & evaluation of policies aimed at addressing environmental problems. The unit involves formal economic theory, evaluation of empirical evidence and engagement with some of the tools that environmental economists use in practice. 

(ECON10331 or ECON10221 or ECON10171) and (ECON10061 or ECON10071)

The unit aims to: 
The aims of this course are to explore the use of economic analysis to investigate the causes, consequences and possible solutions to problems associated with degradation of the environment due to economic activity.  

At the end of the course unit, students will be able to understand and explain: 
1. the history of environmental economic thought; 
2. how neoclassical economics frames environmental problems in terms of market failure; 
3. the theory and practice of valuing, in monetary terms, changes in environmental quality; 
4. cost-benefit analysis, including the discounting of future values; 
5. the economics of environmental regulation; 
6. the economics of climate change and associated policy
 

At the end of the course unit, students will be able to:
1. Understand how neoclassical economics conceptualises environmental problems in terms of market failure
2. Understand the theory and practice of valuing, in monetary terms, changes in environmental quality 
and use of such values in cost-benefit analysis
3. Understand the economics of alternative approaches to regulating local and global pollution including emission standards, technology-based regulations, pollution taxes, subsidies, and tradable pollution permits
4. the economics of climate change and its implications for policy design

Awareness and knowledge as well as the ability to communicate on these issues will be an important skill in a job market in which all organisations (government, business and charities) will have to respond to environmental challenges.

Topic 1 Introduction to Environmental Economics 
Topic 2 Economic Valuation of Environmental Change 
Topic 3 Cost Benefit Analysis & Discounting 
Topic 4 The Economics of Environmental Regulation 
Topic 5 The Economics of Climate Change 
 

16 hours Lectures 
5 hours Tutorials 
79 hours independent study 

Understand how neoclassical economics conceptualises environmental problems in terms of market failure 

Understand the theory and practice of valuing, in monetary terms, changes in environmental quality and use of such values in cost-benefit analysis

Understand the economics of alternative approaches to regulating local and global pollution including emission standards, technology-based regulations, pollution taxes, subsidies, and tradable pollution permits

Understand the economics of environmental problems and the theory and practice of environmental regulation

Develop and utilise problem-solving skills

The ability to analyse and interpret empirical data

The ability to select and deploy relevant information
 
 

The ability to communicate ideas and arguments in writing

The ability to manage time and work to deadlines

Timed written Assignment (Cadmus) (1000 words/1 Hour) 40%
2 x Online Mobius Test (20 questions/40 minutes) 2 x 30%

• Timed written Assignment - On essays and aggregate feedback document on Canvas
• 2 x Online Mobius Test - Auto feedback available on mark release in Mobius Test Gradebook &  discussion on Piazza

Topic 1. Introduction to Environmental Economics 
‘Chapters 1-4’, in Brian Roach Jonathan M. Harris, Environmental and Natural Resource Economics: A Contemporary Approach (5th edition, Routledge 2920) 
‘Chapters 1 and 2’ in Hanley, Shogren and White, Introduction to environmental economics  (Third edition, Oxford University Press 2019) 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348835785780001631?auth=CAS 
Sandmo A, ‘The Early History of Environmental Economics’ (2015) Review of Environmental Economics And Policy 9 (43) 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/347303377330001631?auth=CAS 
‘Chapter 4 Welfare Economics and the Environment’ in Perman et al, Natural resource and environmental economics (4th edition) 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348835957620001631?auth=CAS 

Topic 2. Environmental Valuation 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/lists/345314084130001631?auth=CAS§ion=348836062900001631‘Chapter 6’, in Brian Roach Jonathan M. Harris, Environmental and Natural Resource Economics: A Contemporary Approach (5th edition, Routledge 2920) 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348836112740001631?auth=CAS 
‘Chapters 3 and 4’ in Hanley, Shogren and White, Introduction to environmental economics  (Third edition, Oxford University Press 2019) 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348839805920001631?auth=CAS‘Chapter 12 Valuing the Environment’ in Perman et al, Natural resource and environmental economics 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348839809960001631?auth=CAS 
Barbier E (ed), ‘Chapters 3-6’ in Hanley, Shogren and White, Pricing nature: cost-benefit analysis and environmental policy  (Edward Elgar 2009) 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348839817500001631?auth=CAShttps://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348839992320001631?auth=CAS 

Topic 3. Discounting and Cost-Benefit Analysis 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/lists/345314084130001631?auth=CAS§ion=348840096190001631 
‘Chapter 7’, in Brian Roach Jonathan M. Harris, Environmental and Natural Resource Economics: A Contemporary Approach (5th edition, Routledge 2920) 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348840122010001631?auth=CAS‘Chapter 11 Cost-Benefit Analysis’ in Perman et al, Natural resource and environmental economics 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348840156870001631?auth=CAS 
Bateman Ian (ed), ‘Chapters 2, 7 and 13’, Economic valuation with stated preference techniques : a manual  (Edward Elgar 2002) 
HM Treasury.  The Green Book. Central Government guidance on appraisal and evaluation 2022. https://www.gov.uk/government/publications/the-green-book-appraisal-and-evaluation-in-central-government/the-green-book-2020 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348840170920001631?auth=CAS 

Topic 4. Environmental Regulation 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/lists/345314084130001631?auth=CAS§ion=348840192390001631 
‘Chapter 8’, in Brian Roach Jonathan M. Harris, Environmental and Natural Resource Economics: A Contemporary Approach (5th edition, Routledge 2920) 
https://www.readinglists.manchester.ac.uk/leganto/public/44MAN_INST/citation/348840240070001631?auth=CAS ‘Chapter 5 (Pollution Control Targets), Chapter 6 (Pollution Control Instruments) and Chapter 7 (Pollution Policy with Imperfect

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