Learning Objectives
5 objectives- Understand fundamental concepts of environmental economics and the significance of natural resources.
- Analyze externalities and their impact on environmental degradation and market efficiency.
- Apply valuation methods for natural resources to influence conservation and sustainability policies.
- Evaluate environmental policies using cost-benefit analysis and market-based instruments.
- Examine sustainable development concepts, climate change economics, and corporate social responsibility in environmental contexts.
Content Outline
PreviewUnit 2830: Environmental Economics
1. Introduction to Environmental Economics
- Definition and scope of environmental economics
- Importance of natural resources in economic systems
- Market failures and environmental degradation
- Role of economics in solving environmental problems
2. Externalities and Environmental Degradation
- Concept of externalities: positive and negative
- Examples of environmental externalities (pollution, resource depletion)
- Market inefficiencies caused by externalities
- Government intervention and corrective measures
3. Valuation of Natural Resources
- Importance of valuing natural resources
- Methods of valuation:
- Market price method
- Contingent valuation method
- Travel cost method
- Hedonic pricing
- Use of valuation in policy-making and conservation
4. Cost-Benefit Analysis in Environmental Policy
- Principles of cost-benefit analysis (CBA)
- Identification of costs and benefits related to environmental projects
- Discounting future benefits and costs
- Limitations and challenges in CBA for environmental decisions
5. Market-Based Instruments for Environmental Protection
- Overview of market-based instruments (MBIs)
- Pollution taxes and fees
- Cap-and-trade systems and emissions trading
- Eco-labeling and certification schemes
- Advantages and disadvantages of MBIs
6. Sustainable Development and Green Growth
- Definition and pillars of sustainable development
- Trade-offs between economic growth and environmental conservation
- Strategies for green growth:
- Renewable energy adoption
- Resource efficiency
- Innovation and technology
7. Environmental Policy and Regulation
- Role of government in environmental protection
- Command-and-control regulatory approaches
- Emission standards and limits
- International environmental agreements (e.g., Paris Agreement)
- Enforcement and compliance issues
8. Economics of Climate Change
- Economic impacts of climate change globally and locally
- Mitigation strategies:
- Carbon pricing
- Renewable energy incentives
- Adaptation strategies
- Social cost of carbon and its calculation
- Transitioning to a low-carbon economy
9. Corporate Social Responsibility and Environmental Economics
- Concept of corporate social responsibility (CSR)
- Environmental sustainability initiatives by businesses
- Green marketing and consumer influence
- Sustainable supply chain management
- Role of corporations in environmental stewardship
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