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Environmental Policy and Economics

Course Number:



Undergraduate Economics


B.A. in Economics, B.S. in Economics, B.S. in Economics and Statistics, B.S. in Economics and Mathematical Sciences, Additional Major in Economics, Additional Major in Economics and Statistics, Minor in Economics

Course Description

INTERMITTENTĀ The primary objective of this course is to encourage students to apply the tools of microeconomic analysis (and to a lesser degree, macroeconomics) to the problems of environmental protection, natural resource management, and energy production and use. The course will begin by introducing students to how an economist approaches problems of market failure commonly found in environmental contexts. Next, we will explore models that characterize solutions to such environmental issues. We will then address questions regarding measurement, the design of environmental regulations, and, finally, we will apply the tools that we have developed during the semester to the problems of climate change, and the optimal management of forests, water resources, and land use. (Lecture, 3 hours). Minimum grade of "C" required in all economics pre-requisite courses.


Lecture: 160min/wk


C. Kolstad, "Environmental Economics" (2nd Edition), Oxford University Press, 2010.

Learning Objectives

By the end of this course, students should be able to:
Describe and analyze the three major types of market failure most relevant to the environment: externality, public goods, and tragedy of the commons;
            2. D
escribe and evaluate the three most common policy instruments applied to manage environmental problems: standards, taxes, and tradable permits.
i) Apply and critically evaluate these three policy instruments as to their suitability in managing emissions of local air pollution, long-lived greenhouse gases, and deep-ocean fisheries:
3. D
escribe and critically evaluate current approaches to measuring the benefits of environmental policy.


(21256) AND (73230)