Environmental Economics

Environmental economics is a field of economics that studies the interaction between the economy and the environment. It questions the origin of this interaction and addresses the issue of its proper organization.

 

Human life is synonymous with activities for the provision of food, buildings, heating, transport, lighting, etc. These activities affect the environment’s ability to provide us with essential services. The symptoms of this situation are damages to ecosystems, well-being, health, and life… Social trade-offs are therefore necessary. Environmental economics is rooted in this observation. It aims to guide individual and collective decisions so that the environment is considered in economic decision-making processes regarding production, consumption, investment, etc. It is defined as the study of the interdependence between human society and the environment and the best way to govern this interdependence.

 

The goal of this course is precisely to provide an introduction to the study of these issues.

 

Nota bene: Environmental economics is based on economic analysis. It therefore uses concepts from microeconomics and macroeconomics. The theoretical content of this subject (particularly the use of optimization) should not be underestimated when deciding to engage with it.

Registration dates 20 November 2024 03 December 2024
Course dates 13 January 2025 11 April 2025
Registration is now closed
Environmental Economics

Learning outcomes

  • Discover the two main approaches developed in economics to address environmental issues
  • Explore the different areas of specialization for an environmental economist and key sectors of activity
  • Build an argument for the choice of environmental policies with a critical mindset
  • Identify the interactions between the economy and the environment
  • Use economic analysis methods to address environmental issues
  • Produce a structured and coherent argument in writing
  • Get introduced to the main principles of environmental law
  • Master the economic analysis of pollution level choices using optimization
  • Analyze different environmental policies
  • Compare environmental policies in specific pollution contexts
  • Identify the meaning(s) of „sustainable development“ for an economist

Course content

Chapter 1
INTRODUCTION

Chapter 2
Pollution Control: Which Objective to Choose?

Chapter 3
The Major Approaches to Cost-Benefit Analysis: How Are the Damages of Pollution Evaluated?

Chapter 4
Pollution Control: Do We Need the State?

Chapter 5
Pollution Control: What Regulatory Instruments?

Chapter 6
Sustainable Development: What Does It Mean for Economists?

More information

Prerequisites

Microeconomics 1-2

Having completed the Microeconomics courses in the first year of the Bachelor’s degree (especially the study of the „producer“). If this is not the case, you should be able to understand the „marginal reasoning“ and the representation of „total surplus.“ See the book Introduction to Microeconomics by Hal Varian for these topics.

Complete the self-assessment test.

Work through the course with the following companion manual: Christophe Charlier, Environmental Economics. Challenges and European Examples. Pearson 2023.

 

 

Please check with your home university for credit recognition.