Module Identifier RS25210  
Module Title ECONOMICS OF THE ENVIRONMENT  
Academic Year 2003/2004  
Co-ordinator Dr Michael Christie  
Semester Semester 1  
Course delivery Lecture   22 Hours 22 x 1 hour lectures  
Assessment
Assessment TypeAssessment Length/DetailsProportion
Semester Exam2 Hours Written examination Outcomes assessed: 1, 2, 3, 4, 5  100%
Supplementary Exam2 Hours Written examination Outcomes assessed: All  100%

Learning outcomes

On completion of this module, students will be able to :

1. Discuss the causes of market failure relating to environmental issues;
2. Discuss and evaluate economic models relating to optimal environmental standards;
3. Evaluate the effectiveness of a range of policy instruments for the environment;
4. Discuss and evaluate methodologies for environmental valuation;
5. Critically evaluate the application of economic principles to contemporary environmental policy issues.

Brief description

This module examines the economic principles underlying the analysis of environmental problems and applies these principles to contemporary policy issues. Topics covered in this module include discussion of economic principles and market failure; optimal environmental standards; Coase theorem, polluter pays principle, command and control policies, Pigovian (pollution) taxes, pollution subsidies, pollution permits; and environmental valuation methodologies. These principles are then applied to contemporary environmental policy issues.

Aims

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

The module aims are:
i. To understand economic principles relating to market failure;
ii. To discuss the characteristics of environmental goods;
iii. To critically evaluate the application of economic principles to contemporary environmental policy issues.

Transferable skills

.3 Use and analysis of numerical information
Students will complete a series of class exercises that will aim to demonstrate and enhance their understanding of economic principles.

.4 Writing in an academic context
Students will be required to undertake a written examination.

Reading Lists

Books
Folmer, H, Gabel, H L and Opschoor, H (1997) Principles of environmental and resource economics Edward Elgar: Cheltenham
Hanley, N and Spash, C (1992) Cost benefit analysis and the environment Edward Elgar: Cheltenham
Hodge, I (1995) Environmental economics Macmillan
Markandya A (Ed) (1992) The Earthscan Reader in envirmental economics London: Earthscan
Pearce D, Markandya A and Barbier E B (1989) Blueprint for a Green Economy Earthscan Publications
Pearce, DW and Turner, RK (1990) Economics of Natural Resouces and the Environment Harvester Wheatsheaf

Notes

This module is at CQFW Level 5