B2224 - ENVIRONMENTAL ECONOMICS

Learning outcomes

The course will offer students a multidimensional perspective on the dynamic links between human societies and the environment, using insights from environmental, resource and ecological economics. After presenting the historical background of the discipline, the course will provide a broad overview of how economic theory conceptualises the problems of optimal pollution control and the efficient use of exhaustible and renewable natural resources. Several key sub-fields of environmental economics will be analysed and discussed, including the valuation of environmental goods, the measurement of sustainability, the links between economic growth and environmental degradation, the role of technological innovation as well as the behavioural aspects of environmental protection. Climate economic modelling will be the main applied focus of the course. At the end of the course, students will have a comprehensive understanding of the most relevant research areas in environmental and resource economics.

Course contents

The course takes place in the first half of the autumn semester. It will cover the following topics:

• Weak and strong sustainability; environmental and ecological economics
• Economic growth and the environment
• Measures of sustainability
• Static and dynamic efficiency
• Cost-benefit analysis
• Depletable resource economics

• Renewable resource economics
• Climate change economics
• Environmental policy
• International environmental agreements

While the course will touch upon policy strategies, a dedicated course on ‘Environmental Economic Policy’ is available to interested students

Readings/Bibliography

The recommended textbook for this course is:

• Perman, R., Y. Ma, J. McGilvray, M. Common, Natural Resource and Environmental Economics (4^th ed., 2013), Pearson Addison Wesley.Available at: https://almastart.unibo.it/permalink/f/10694hg/39UBO_ALMAE_DS5151329130007041

  Alternative (more basic) textbooks include:

• Tietenberg, T., and Lewis, L., Environmental and Natural Resource Economics (12th ed., 2024), Routledge
• Harris, J.M., Roach, B. Environmental and Natural Resource Economics: A Contemporary Approach (5th ed., 2021), Routledge

Further resources will be in the form of academic articles or policy reports. All readings will be available on Virtuale or through UniBo subscriptions.

Teaching methods

The course will be a combination of frontal lectures, in-class exercises and student-led presentations/discussions.

Assessment methods

The grade for this course will be the combination of:

• Participation (10%). This will be evaluated considering attendance and active participation to both lectures and tutorial classes.
• Group-work (30%). Each student will self-allocate to a topic group (of roughly three members). Topics will be chosen among the ones provided by lecturer, but alternative topic proposals can be considered. Each group will have to submit an essay.
• Exam (60%). A written exam will take place at the end of the course. The exam will last 1 hour and may include open essay-style questions, exercises and/or multiple choice questions.

Grading is as follows:

• <18 fail
• 18-23 pass
• 24-27 good
• 28-30 very good
• 30L excellent

Teaching tools

All the course material (slides, readings etc.) will be made available on Virtuale. Suggested textbooks will be available at the UniBo library.

Office hours

See the website of Alessandro Tavoni

See the website of Emanuele Campiglio