Class 1. Overview of Environmental Economics and Policy
This lecture discusses the rationale for studying environmental economics, the role of environmental economics and policy and its relation with other brands of economics, and examples of environmental policy in the real world.
*Perkins, Dwight, Steven Radelet and David Lindauer (2006). Economics of Development, New York: WW Norton and Company, 6th edition. Chapter 20.
- Hussen, Ahmed (2004). Principles of Environmental Economics, Routledge London 2nd Edition, ISBN 0-203-57050-2. Chapter 4, 5, 6.
Policy Memo 1 Distributed
Class 2. Instruments of Environmental Policy (EP)
Students will learn the principle of environmental policy, and how the government can address environmental externalities and fix market failures through a broad range of market and non-market instruments.
*Hussen (2004). Chapter 4, 5, 6.
- Field, Barry C.
This five-week course introduces the concepts of environmental economics and sustainable development, with examples brought from real-world situations. The first week presents an overview of environmental economics and discusses situations in which governments need to intervene to correct market failures. Then, students will study which environmental policy instruments available to address different types of market failure. The second and the third week focus on measuring and incorporating environmental impacts, such as air, water, and noise pollution, in a conventional cost-benefit analysis framework and decision tools used in project appraisals.