07173 - Economics of the Environment

Course Unit Page

  • Teacher Anna Montini

  • Learning modules Anna Montini (Modulo 1)
    Francesco Silvestri (Modulo 2)

  • Credits 10

  • SSD SECS-P/01

  • Language Italian

  • Campus of Bologna

  • Degree Programme First cycle degree programme (L) in International Development and Cooperation (cod. 8890)


This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.

Sustainable cities Responsible consumption and production Oceans

Academic Year 2018/2019

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 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 total 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, environment, development. Sustainability in the economic theory. The role of the technological progress. Environmental Kuznets curves: empirics and methodological problems. Environmental accounts. Global policies and the environment. Cooperation and free riding; international environmental agreements.


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.

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

The exam consists in one written test (with four open questions). Time allowed: 80 minutes.

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.

Links to further information


Office hours

See the website of Anna Montini

See the website of Francesco Silvestri