Unit 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