ENVIRONMENTAL ECONOMICS AND POLICY
The aim of the course is to provide the students with the basic theoretical elements to analyze the environmental issues and policies by international, European, and national institutions aimed to control the externalities and to implement the sustainable objectives.
Expected learning outcomes
Knowledge and understanding: the student should demonstrate the understanding of the economic issues related to the use and management of environmental resources; he should also show to know the main tools of policy implemented by the international, European, and national institutions in order to guarantee sustainable use of environmental resources.
Applying knowledge and understanding: the student should demonstrate that he has understood the acquired theoretical knowledge. He should also reveal the ability to combine the theoretical knowledge with operational skills, both in the interpretation of specific environmental policy interventions by the deputy institutions and in the understanding of the resources management tools implemented internationally and nationally.
Making Judgments: the student should show his ability to provide independently an assessment of environmental issues and indicate the main policy strategies for market regulation in order to achieve optimal allocation of resources between different uses.
Communication: The student should reveal the ability to use the economic terminology in order to discuss on the topics of the written exam questions envisaged for the final exam as well as to present the seminar discussions that will take place during the lessons.
Lifelong learning skills: the student should acquire a learning ability to make him able to obtain updates through the consultation of scientific texts and publications on the issues related to the management of environmental resources in the functioning of the economic system, which are applicable to subsequent studies in the following university course.
For an adequate understanding of the contents of the course, it is necessary to acquire and assimilate the knowledge of the fundamental concepts of microeconomics.
I Module - Economy, environment and sustainability (12 hours of lesson)
Interaction between economic and environmental systems: the traditional economic model; the budget model of the materials; limits to growth. Definition elements of sustainability concepts; analysis of the main theoretical approaches; measures of sustainability; operative principles; comparison between environmental sustainability and green economy.
II Module – Causes of the environmental issues and the problem about the economic value of the environmental resources (12 hours of lesson)
Functioning and failure of the market; public goods and open access resources; the free-rider problem; externalities; non perfect competitive markets; analysis of pollution as externality; the failure of the public intervention. Techniques of monetary valuation of the environmental resources: hedonic pricing; contingent valuation; cost of transport system.
III Module - Externality Control and optimal allocation of the resources: Tools policies (12 hours of lesson)
Command and control tools (environmental standards). Economic instruments (taxes and subsidies, property rights). Voluntary and preventive tools (eco-label, negotiable allowances).
IV Module – The environmental policies
The international conferences (UNO) on the environment. Kyoto Treaty; developments of the ageements on the climate change. The environmental policy of the European Community: Principles; environmental action programmes; policy tools.
The course is conducted through frontal lessons during which the topics of the program will be analyzed. During the lessons, students are discussing seminars on specific cases of policy interventions and business strategies.
Turner Kerry R., Pearce David W., Bateman I. Economia Ambientale, Il Mulino (chapters selected).
- Additional readings will be provided during lessons and made available on the Moodle e-learning platform.
The objective of the exam is to assess the level of achievement of the objectives. The exam consists of a structured written test with open, argumentative and analytical questions aimed at assessing the degree of in-depth general theoretical knowledge. Students will have to answer the questions by showing the ability to expose the technical contents, definitions, and basic concepts acquired with their study appropriately in terminology, and to know graphically the main macroeconomic and microeconomic models presented during the course. The written test consists of 6 questions.