Module Information

The module is designed to provide an introduction and comprehensive overview of concepts of rural and environmental economics and policy to students who are not specialists in economics. The module will be delivered through two parallel content streams: students will study both streams. The first stream will focus on economic theory that underlies rural and environmental policies, while the second stream will present further details on past and current policy interventions.

In the first stream, basic concepts in economic theory are introduced, so that understanding is developed of how markets are supposed to achieve economically efficient allocations and why, when they fail to do so, environmental degradation often results. The module then explores how governments might intervene to address environmental issues, and evaluates the effectiveness of a range of policy instruments including command-and-control instruments and incentive-based instruments. The module also explores why economists attach importance to the monetary valuation of environmental goods and services, and provides a critique of techniques for doing so. Finally, we explore how such values might be incorporated into cost-benefit analysis and policy appraisals.

In the second stream, details of both UK and EU rural and environmental policies are presented. First, a historical review of the origins of the EU Common Agricultural Policy (CAP) are presented, followed by a discussion on the case for reforming the CAP. Other environmental policies are then introduced including nature conservation, and sustainable rural development policies.

Basic micro economic theory
Market failure and externalities
Policy instruments for the environment
Valuation of the environment
Policy appraisal

History of the Common Agricultural Policy
Reforms of the Common Agricultural Policy
Nature conservation policies
Sustainable rural development policies