07173 - Economics of the Environment

Learning outcomes

The aim of the lectures is to provide the students the foundations of the environmental economics and its methods. At the end of the course the students will be able to know a good terminology, methodologies and to discuss the main environmental economic topics.

Course contents

INTRODUCTION. The economic systems and the environment. Natural resources. Fundamentals of environmental micro-economics: private costs, external costs and social costs. Market failures and regulation. Public goods and free riding. Negative externalities and their control. Environmental policies: command and control tools; economic tools (taxes, subsidies, property rights); preventive and volunteer tools (eco-label, tradable permits).

THE ECONOMIC VALUE OF ENVIRONMENTAL GOODS. Willingness to pay and willingness to accept. Valuation methods: direct methods and indirect methods (Contingent valuation, Choice modelling, Hedonic prices, Travel costs). Cost-benefit analysis and cost-effectiveness analysis; discounting the future.

GROWTH, DEVELOPMENT AND ENVIRONMENT. The Environmental Kuznets Curve. Sustainable Development. Measuring the Sustainability. Poverty and environment.

INTERNATIONAL ECONOMIC POLICY AND THE ENVIRONMENT. Cooperation and free riding; international environmental agreements. Climate change.

Readings/Bibliography

Turner R.K., Pearce D.W., Bateman I., Economia ambientale, Il Mulino, 2003 (available in english version too).
Musu I., Introduzione all'economia dell'ambiente, Il Mulino, 2003.

D.Lanzi (2022) "Economia dell’ambiente", Bononia University Press, Bologna.

Teaching methods

Lectures; case studies. The lectures will be held during the second term, so the students can attend the exam starting from may/june.

Assessment methods

Written exam.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 cum laude excellent.

Teaching tools

During the lectures, the students will receive information and material about the main statistical sources useful for the empirical analysis in the environmental economics research field. Every academic year a distribution list is activated: thus the lecturer will send, to the included students, other useful material.

Office hours

See the website of Anna Montini

See the website of Diego Lanzi