Environmental Economics

This course will enable students to understand how policy makers approach problems pertaining to natural and/or environmental resources. The course will focus on when and why markets may fail to allocate resources efficiently and what policy instruments could be used to correct such failures. In addition, the course will provide an overview of the techniques used by economists to value environmental goods (i.e. where there is no market), and how the quality of the environment is related to international trade and economic growth (development). Finally, students will be introduced to the applications of experimental economics to environmental goods. The contents of the course include:

• Introduction
• Environmental and natural resource use
• Common pool resources and tragedy of the commons
• Social choice (Environment and Society)
• Market failure and Environmental policy instruments

1. Externalities
2. Pigouvian Policy
3. Coase Theorem

•  Uncertainty and asymmetric information
• Valuation methods for environmental goods
• Experimental economics application to environmental goods
• Economic growth/development and environment
• International trade and environment

The course consists of four days of lectures, discussion of papers, presentations, and games (experimental economics). In addition, 30 hours of self-study is required.