Environmental and Resource Economics

This course gives an introduction to environmental and resource economics. Emphasis is put on how economic theories can be used to discuss environmental issues and problems, e.g.: How to assess economic goals and needs between generations? What is sustainable development? What do we mean by efficient utilisation of the environment? Environmental regulation – why and how? Optimal pollution control - when and how? The course covers economical analysis and methods for environmental accounting, the theory on optimal management and use of renewable and non-renewable natural resources, valuation of the environment, and international environmental problems and agreements.

Knowledge

You learn

• simple models of the relationship between economic activity and the environment
• how to determine the optimal level of pollution and the optimal use of a natural resource from an economic point of view
• how various policies, such as taxes, subsidies, and quotas, can be used to realize the optimal solution when markets fail
• about policies related to exhaustion of non-renewable resources and overutilization of renewable resources, common pool problems and sustainability concepts

Skills

You should be able to

• use microeconomic models to analyze environmental and resource economic issues, for instance the impact of imposing emission taxes on polluting firms, CO2 quotas and economic efficiency, and the impact of direct and indirect regulations on the economic surplus and harvest in a fishery

General competence

You should be able to

• follow economic reasoning related to the course in the public debate and professional reports

2 hours of lectures every week. Information about tutorials and compulsory activity will be announced at the beginning of the term.