LFU:online

1) Knowledge:

• understand how the environment and the economy interact with each other
• find out how economics as a field can contribute to solve environmental problems
• assess under which conditions policy intervention is advisable to improve economic efficiency
• become familiar with the most important policy instruments to address environmental problems available and their strengths and weaknesses
• acknowledge the challenges and trade-offs policy makers face when designing specific policy measures
• gain insights into recent examples of environmental policy implementation
  
  

2) Skills:

• a sound foundation in welfare economics as a framework to assess environmental problems
• basic understanding of the relevant literature in the field and the ability to grasp and critically question the underlying methods, arguments and conclusions
• ability to critically follow and assess contemporary discussions on environmental problems and policy interventions
• present results of own research in class in a concise and structured way and defend theoretically grounded points of view and assessments

1. Foundations in welfare economics and its application to environmental issues
2. Policy instruments to correct market failures behind environmental issues
3. Implementation of policy instruments in practice
   
4. Emphasis on specific environmental problems
   

In each session the participants will be made familiar with a specific topic in environmental economics, a special focus will be given to policy instruments to address market failures and specific environmental problems. Short presentations prepared by the participants will complement and these sessions and account for 30% of their final grade. A final group project accounts for further 60% of the grade. The remaining part of the grade will be determined by participation in class.

(1) Active participation (10%)
(2) In-class presentation (30%)
(3) Final Group Work (60%)

• Hanley, N., Shogren, J. and B. White (2019): Introduction to Environmental Economics. Oxford University Press.
• Perman, R., Ma, Y., McGilvray, J. and Common, M. (2010): Natural resource and environmental economics. Pearson.
• Rosen, H., Gayer, T. and A. Civan (2014): Public Finance. 10th edition. McGraw-Hill.  
• Sterner, T. and Coria, J. (2012): Policy instruments for environmental and natural resource management. Second Edition. Resources for the Future. Routledge Taylor&Francis Group.
• Wagner, G. and M.L. Weitzman (2015): Climate Shock – The Economic Consequences of a Warming Planet. Princeton University Press.

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