
Environmental Economics
Code
10369
Academic unit
Faculdade de Ciências e Tecnologia
Department
Departamento de Ciências e Engenharia do Ambiente
Credits
6.0
Teacher in charge
Rui Jorge Fernandes Ferreira Santos
Weekly hours
5
Total hours
70
Teaching language
Português
Objectives
The Environmental Economics course introduces students to the application of the principles of economics to the study of the interrelationships between environmental and economic systems. The fundamental aspects of market structure and behaviour are addressed, including consumer and production theories, as well as the consequences of the "market failures" underlying environmental problems. The course presents the essential concepts (e.g. economic efficiency, market, externalities) and methodologies (e.g. cost-benefit analysis, cost-effectiveness analysis) to address environmental problems. This course also focus on the role of the economic approach in designing and implementing environmental policy instruments, determining the economic value of environmental resources and analyzing investment projects in the economic sector. Students are expected to know, understand and be able to discuss the foundations, potentialities and limitations of the application of economics to the study of environmental problems. The expected learning outcomes include the competence and capability of: a) integrating the economic approach in the identification, formulation, analysis and solution of environmental problems; b) designing, applying and evaluating environmental policy measures and instruments; c) develop a financial and economic evaluation of investment projects; d) applying other economic analysis methodologies and interpreting results; e) developing work in multidisciplinary teams; and f) undertaking further research with a high degree of autonomy.
Prerequisites
Attendance of the previous courses in the degree programme is recommended, in particular Mathematical Analysis I to III.
Subject matter
Economics and the Environment; economic approach to environmental problem identification and solving. Introduction to microeconomics: consumer behavior, producer behavior, markets; perfect competition; fundamentals of general equilibrium: efficiency and social welfare. Market failures and the environment (e.g. externalities; open access, public good) - causes and environmental consequences. Economic approach to pollution control: efficient level of control; cost-effectiveness analysis; Coase (property rights) vs Pigou (taxes) approaches. Environmental Policy Instruments: evaluation/selection criteria; type of instruments - command and control, economic and market-based, information, voluntary, decentralized action; case studies. Appraisal of Investment Projects: definition and typology of investments; selection and evaluation criteria - NPV, IRR; examples.
Bibliography
Field, B., Field, M., (2012). Environmental Economics: an introduction, 6th ed, The McGraw-Hill Companies, Inc., New York. ISBN-10: 007351148X
Santos, R., Antunes, P., (1999). Instrumentos Económicos de Política de Ambiente, in Ambiente, Economia e Sociedade, Série "Estudos e Documentos", Conselho Económico e Social, Lx
Stavins, R. (ed.), (2012). Economics of the Environment: Selected Readings, 6th ed. New York, New York: W. W. Norton & Company, USA. ISBN 978-0-393-91340-8
Tietenberg, T. and Lewis, L. (2011). Environmental & Natural Resource Economics, 9th ed. Boston: Pearson Education, Inc., USA. ISBN-10: 0132843005
Teaching method
The teaching methods of this course are based on the presentation and discussion of concepts and methods in the theoretical classes, complemented with the presentation and analysis of a set of practical problems and real case studies to facilitate learning. Autonomous research and study of the course topics is promoted. Practical lectures focus on the resolution of exercises, presentation and discussion of case studies, as well as the presentation and discussion of assignments developed by students or cases that they present on a volunteer basis.
Evaluation method