Module Identifier RS30210  
Academic Year 2000/2001  
Co-ordinator Dr Michael Christie  
Semester Intended For Use In Future Years  
Next year offered N/A  
Next semester offered N/A  
Other staff Professor Peter Midmore  
Course delivery Lecture   22 Hours  
  Seminar   3 Hours Student presentations  
Assessment Exam   2 Hours   60%  
  Seminar presentation   Scientific paper and seminar   40%  

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 :

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.

Reading Lists
Bateman D I .. (1994) Organic farming and Society: an economic perspective. In The Economics of Organic Farming: An International Perspective. Eds N H Lampkin and S Padel. CAB International
Hanley N and Spash C. (1992) Cost benefit analysis and the environment. Edward Elgar.
Hodge I. (1995) Environmental economics. Macmillan
Markandya A and Richardson J (eds). (1992) Earthscan Reader in Environmental Economics. Earthscan Publications
Pearce D, Markyanda A and Barbier E B. (1989) Blueprint for a green economy.. Earthscan Publications
Pearce D W and Turner R K. (1990) Economics of natural resources and the environment.. Harvester Wheatsheaf
Costanza R et al. (1997) An introduction to ecological economics. St Lucie Press, Fla
Daly. (1992) Steady-state economics. Earthscan
Ekin P and Max-Neef M. (1992) Real life economics: understanding wealth creation. Routledge