EC334-Environmental Economics

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Autumn term module
Pre-requisites: EC201 Intermediate Microeconomics or EC201NU Intermediate Microeconomics
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Stefania Lovo
Email: s.lovo@reading.ac.uk

Type of module:

Summary module description:

The main focus of this course is on externalities resulting from human activity. These include among others climate change, pollution, natural resource depletion, and biodiversity loss. Topics will be shaped around two core areas:Ìý

• Measuring externalities and their effects on human welfare.


• Designing and evaluating policy instruments to tackle negative externalities.

Aims:

This module aims to provide an overview of the theories, methodological tools, and evidence to understand contemporary environmental problems such as climate change, pollution, and sustainable development. The framework taught in the module can be used to evaluate various important policy questions such as: should air regulations be tightened or loosened? Does economic development necessarily result in a higher environmental damage? Is globalisation bad for the environment? Are we running out of oil and other natural resources? What are the policy tools to address climate change?

Assessable learning outcomes:

By the end of the module, the student will be able to demonstrate:ÌýÌý

• An understanding of the issues concerning the environment, climate change and natural resources and how they affect our economies and societies


• The ability to solve and manipulate a variety of diagrammatic and algebraic models in environmental economics, and critically evaluate those modelsÌý


• Knowledge of methods and tools used to value environmental resources.


• The ability to critically evaluate current and proposed policies dealing with climate change and the environment


• An understanding of the limitations of economic analysis to provide guidance on environmental issues


• The ability to express an informed view regarding the potential of economics to help societies achieve their environmental goals

Additional outcomes:

The ability to use the academic literature to understand causes and relationships, the ability to apply economics to real life problems, the ability to critically assess policy interventions.

Outline content:

• Overview of climate change, environmental and natural resource problems.Ìý


• Natural resources and energy economics: the management of common resources and the modelling of renewable and non-renewable resources.


• Cost and benefit analysis: evaluation and discounting.


• Environmental policy: design and impact.


• Globalisation and the environment: trade, international agreements, and global development.

Global context:

This module will consider evidence and policy examples drawn from a wide range of countries.Ìý

Brief description of teaching and learning methods:

This module is delivered through 10 two hour lectures. Lectures will be used to present the material but will also involve an interacting component with in-class exercises, simulations and discussions.Ìý