37538 - Environmental Economic Policy

Learning outcomes

The aim is to provide theoretical knowledge on methods useful for understanding public policy, and in particular  environmental economic policy. Particular attention is given to: rationality of policy-maker; the identification of the different values that can be ascribed to a natural resource; the different methods of evaluation of the benefits from  natural resources; sustainable development and integrated natural resources management (INRM); and the application of cost-benefits analysis (CBA) to projects about the management of natural resources.

Course contents

Part I:

 -     Policy-maker's rational behaviour

-     Introduction to Environmental economics: fundamental concepts

-  Sustainability and sustainable development: definition and indicators. Strong and weak sustainability.  Sustainable economic system. 

-    The market failure: externality and public goods.

-          Cost-benefit analysis (CBA). The economic valuation of natural resources. The total economic value (TEV): measurement of environmental benefits and losses; evaluation methods.

-          Case-studies:

a)      the estimate of the use value of some Italian beaches;

b)      the estimate of the non-use value of the nature park of Monte Sole (BO);

c)      the economic valuation of a reduction of flooding risk;

d) the application of CBA to a project about the defence of a coastal site.

 

 

Part II:

-     Pollution from the economic point of view: CBA and the optimal social level of pollution.

 -     The instruments of environmental economic policy: Coase theorem;  Pigou tax;

      environmental standard; permission trading; technology.                                                   

-   The integrated natural resources management (INRM).

-  The sustainable management of renewable resources 

-     Carrying capacity of natural resources.

-    The scarcity of energetic resources.

      Some case-studies:

a)      social carrying capacity of two coastal sites

b)      nazional systems of emission trading.

Readings/Bibliography

Tietenberg T. (2006) “Economia dell'Ambiente”, McGraw Hill, Milano (Capp. 2, 3, 4, 6, 9)

Rao P.K. (2000) “Sustainable Development”, Blackwell, London (Capp. 3, 6, 7)

Pulselli F., Bastianoni S., Marchettini N., Tiezzi E. (2007) “La Soglia della Sostenibilità”, Donzelli, Roma (Capp. 2,3,5)

Cropper M.L., Oates W.E. (1992) “Environmental Economics”, Journal of Economic Literature, 30(3), pp.675-740

Lehtonen M. (2004) “The Environmental-Social Interface of Sustainable Development: Capabilities, Social Capital, Institutions”, Ecological Economics, 49, pp.199-214

Davis D., Gartside D.F. (2001) “Challeges for Economic Policy in Sustainable Management of Marine Natural Resources”, Ecological Economics, 36, pp.223-236

Assessment methods

One written test, which consists of two questions.

Teaching tools

A specific material will be provided at the end of the lessons.

Office hours

See the website of Diego Lanzi