Content

The central objective of this course is to provide the students a problem-solving framework for the analysis and remediation of externality problems. "Environmental Economics" is the theoretical and empirical scientific study of economic aspects of environmental problems in the broadest sense. Occupying a central position here is the concept of externalities, which is the fact that actions of economic agents (consuming and producing) often create unwanted side effects for which no compensation is paid. These externalities lead to inefficiencies in the sense that, from a societal point of view, too many polluting goods are produced or natural resources are being overexploited. Environmental Economics investigate the causes for these market failures and proposes solutions in the form of environmental policy instruments that can be applied by the government to get rid of these inefficiencies. These instruments include property rights, liability regulation, emission and technology norms, environmental taxes, tradeable emission rights etc. In the course Environmental Economics, much attention will also be paid to the economic valuation of environmental goods for which no typical markets are existent. These valuation techniques contain both direct methods (questionnaires in which the willingness to pay for environmental goods will be assessed) as well as indirect methods (valuations deduced from observation activities at related markets).

PART I: INTRODUCTION

Introduction
Environment and the economy

PART 2: MODELLING OF THE ENVIRONMENTAL PROBLEM

Basic models of environmental economics
Illustration of basic concepts w.r.t. environmental economics

PART 3: MODELLING OF THE ENVIRONMENTAL POLICY

Evaluation criteria for environmental policy instruments
Decentral environmental policy instruments
Central environmental policy instruments
Monitoring and enforcement

PART 4: ANALYSIS OF ENVIRONMENTAL POLICY

Measuring benefits
Measuring costs
Decision methods
Applications of cost-benefit analysis

PART 5: ENVIRONMENT INVESTMENTS

Analysis of environment investments
Environment policy within an organization

PART 6: INTERNATIONAL ENVIRONMENTAL PROBLEMS

Chapter 17: International environmental problems
Chapter 18: Climate Change

Course material

Compulsory study material:

Rousseau, S. (2021). Introduction to environmental economics. 

Toledo is being used for this learning activity.

Language of instruction: more information

This course is taught in English in order to prepare students for functioning in an international and global environment.

Format: more information

Lectures which explicitly incorporate discussions, exercises and questions