Economics of Water
Code
10723
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
Total hours
70
Teaching language
Português
Subject matter
Economics and Water Managemnt; economic approach to water management problems identification and solving/mitigation.
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. positive and negative externalities; common-pool resources and open access, public goods) - causes and environmental consequences.
Economic approach to pollution control: efficient level of control; cost-effectiveness analysis; Coase (property rights) vs Pigou (taxes) approaches.
Water Policy Instruments: evaluation/selection criteria; type of instruments - command and control, economic and market-based, information, voluntary, decentralized action; water services marker regulation; 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., 2009. The economic approach and the new water management paradigm, in L. Veiga da Cunha et al(Edts.), Reflections on Water, Portuguese Water Resources Association (APRH), Lisbon. ISBN 978-972-99991-6-1
Santos, R., 2009. Aspectos económicos e financeiros, inReport 5th World Water Forum, Istambul 2009, Ministério do Ambiente, do Ordenamento do Território e do Desenvolvimento Regional, pp. 54-64, Lisboa. ISBN 978-989-8097-16-3
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