Description and contextualization of the subject

The goal of this course is to explain the interdependencies between the environment and the economy. The course shows how economic analysis can guide solutions to serious environmental problems at various scales, such as pollution, climate change, loss of biodiversity, depletion of natural resources, etc. The course examines market failures and applies microeconomic principles to markets for environmental resources. Methods for measuring the damages caused by polluting activities and the benefits of improving environmental quality are examined. The course includes examples of current environmental issues and policies, and the role of regulation.



Regardless of the initial training of the master's students, the basic concepts for this course will have been acquired in the compulsory subjects of the master's program (Microeconomics, Macroeconomics, Econometrics and Quantitative Methods).



Teaching and evaluation will be face-to-face, except in the case of unforeseen circumstances that prevent it, in which case, teaching and/or evaluation will be reorganized to be online.



The course is related to the Sustainable Development Goals (SDG) of the United Nations 2030 Agenda in the following dimensions:



- SDG 7. Affordable and non-polluting energy.

- SDG 13. Climate Action.

- SDG 14. Life below water.

- SDG 15. Life on land.

Learning outcomes of the subject

At the end of the course, students will have achieved the following learning outcomes:



1) Understanding key environmental issues and how to interpret them in business terms.

2) Recognizing the principles, rules and procedures of sustainable development from an economic point of view.

3) Learning the theory and fundamentals behind environmental policy analysis.

4) Managing analytical techniques for assessing the economic value of the environment.

Ordinary call: orientations and renunciation

The exam is worth 40% and the assignments are worth 60% of the total grade. Assignments can be done individually or in teams and the grade will depend on their difficulty.



If the student does not submit ALL assignments, the final exam will be worth 100% of the final grade and may include more questions in the same time.



In exceptional circumstances that prevent face-to-face teaching and exams, the teaching and evaluation modalities may be adjusted.

Extraordinary call: orientations and renunciation

The exam is worth 40% and the assignments are worth 60% of the total grade. Therefore, the homework grade will still count toward the final grade in the second sitting.



If the student does not submit ALL assignments, the final exam will be worth 100% of the final grade and may include more questions in the same time.



In exceptional circumstances that prevent face-to-face teaching and exams, the teaching and evaluation modalities may be adjusted.

Temary

1. Introduction Economy and Environment

2. Market Failure and Welfare Analysis

3. Environmental Policy Instruments

4. Macro-Environmental Economics

5. Climate Change Economics

6. Rationale for environmental valuation

7. Revealed preferences methods

8. Stated preferences methods

9. Benefit transfer and meta analysis

10. Cost-benefit analysis and the environment

Bibliography

Compulsory materials

Statistical softwares: R, Stata, Gretl. The most preferred software is Stata.







Mathematical softwares: Mathematica.







Text processors: Word, Tex. The most preferred software is Tex.

Basic bibliography

[1] Hanley, N., Shogren, J.F. and White, B. (1997), Environmental Economics in Theory and Practice, London: McMillan



[2] Keohane, N., Olmstead, S.M. (2016), Markets and the Environment. Island Press. 2nd Edition.

Journals

Field journals:



[1] Environmental & Resource Economics. http://www.springer.com/economics/environmental/journal/10640



[2] Journal of Environmental Economics and Management. http://www.journals.elsevier.com/journal-of-environmental-economics-and-management/



[3] Resource and Energy Economics. http://www.journals.elsevier.com/resource-and-energy-economics/



[4] Ecological Economics. http://www.journals.elsevier.com/ecological-economics/



[5] Land Economics. https://le.uwpress.org/



[6] Journal of Forest Economics https://www.sciencedirect.com/journal/journal-of-forest-economics



[7] Journal of Choice Modelling https://www.sciencedirect.com/journal/journal-of-choice-modelling

Links

[1] Resource for the future. http://www.rff.org/Pages/default.aspx



[2] European Association of Environmental and Resource Economists. http://www.eaere.org/resource_web.html