RSM1510 - ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS

Module Identifier	RSM1510
Module Title	ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS
Academic Year	2001/2002
Co-ordinator	Dr Michael Christie
Semester	Semester 2
Other staff	Professor Peter Midmore
Course delivery	Lecture	11 x 2 hours
Assessment	Assignment	Conference paper	40%
	Exam	2 Hours 2 questions out of 6	60%

Aims and objectives

The module examines the theoretical structure underlying the economic problems of the environment; causes of market failure; policies for the environment and the economic techniques underlying policy decisions (cost-benefit analysis).

Content

Causes of market failure. The market as an ideal. The theory of externalities, public goods and common property resources. Uncertainty and irriversibility. Discounting and the theory of optimal resource depletion. Economic basis of the 'Polluter Pays' Principle. Sustainable development. Policies for the Environment. Property rights and the Coase Theorem: bargaining and cooperation; transactions costs; cross-compliance. Pigovian taxes (including usage v. ambient contribution). Sales of pollution rights. Environmental standards and separate facilties. Economic techniques underlying policy decisions. Valuation of non-market effects. Cost-benefit analysis. Environmental forecasting.

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.

Reading Lists

Books
** Recommended Text
Bateman, DI; Organic Farming and Society: An Economic Perspective. (1994) In The Economics of Organic farming: An International perspective (eds) Lampkin,NH & Padel,S. Wallingford: CAB International
Field, B. (1994) Environmental Economics: An Introduction.
Hanley, N and Spash, C. (1992) Cost Benefit Analysis and the Environment. Aldershot: Edward Elgar
Hodge, I. (1995) Environmental Economics. Macmillan
Markandya, A and Richardson, J (ed). (1992) Earthscan Reader in Environmental Economics. Earthscan Publications
Pearce, DW and Turner, KR. (1990) Economics of Natural Resouces and the Environment. Harvester Wheatsheaf
Pearce,D, Markandya, A and Barbier, EB. (1989) Blueprint for a Green Economy. Earthscan Publications
Winter, M. (1996) Rural Politics: Policies for Agriculture, Forestry and the Environment. Routledge