Aims of the module
The module examines the economic principles underlying the analysis of environmental problems and encourages students to apply these principles to contemporary policy issues.

Learning outcomes
on completion of this module students will be able to :

• Discuss the causes of market failure relating to environmental issues

• Evaluate the merits of various environmental economic techniques

• Apply environmental economic principles to topical environmental issues

• Evaluate the effectiveness of current environmental policies

• Differentiate between a range of different economic perspectives on the environment

Syllabus / Curriculum design
The module comprises 22 lectures and 3 hours of student presentations. The lectures are split between the following two subject areas:

A. Neoclassical environmental economics

i) Economic principles and market failure - the theory of public goods and externalities, property rights;
ii) Characteristics of environmental goods and problems - external costs and benefits, transaction costs, discount rates;
iii) Optimal environmental standards - optimal environmental quality, assimilative capacity;
iv) Policy instruments for the environment - Coase Theorem, Polluter pays principle, command and control policies, Pigovian
(pollution) taxes, Pollution subsidies, Pollution permits;
v) Environmental evaluation - cost-benefit analysis, travel cost method, contingent valuation method, hedonic pricing, stated
preference, multiplier analysis.

B. Ecological economics

i) Ecological economics: a challenge to conventional wisdom;
ii) Economic growth and the environment;
iii) Social traps;
iv) The economics of permaculture;
v) Economcs and ethics.