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  3. Environmental Economics and Policy

Environmental Economics and Policy (ECON20004)

Undergraduate level 2Points: 12.5On Campus (Parkville)

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Overview

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Semester 1
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This subject applies economic theory to environmental issues. Topics include the theories of externalities and public goods applied to pollution and environmental policy; trade-offs between environmental goals and growth; how to value environmental amenities and environmental damage; marketing of environmentally-friendly products; life-cycle costs and recycling; the relative costs and benefits of environmental standards, bans, subsidies, pollution taxes and cap-and-trade systems; valuing the benefits provided by renewable energy; and remediation and clean-up. By the end of the course, students will be equipped with the analytical tools necessary to evaluate a broad range of environmental policies.

Intended learning outcomes

On successful completion of this subject, students should be able to:

  • Use economic techniques to analyse environmental problems and assess environmental policies;
  • Explain the externality and public good reasons for market failure and their relationship to environmental problems;
  • Describe and evaluate different methods for assigning monetary values to environmental amenities;
  • Critically evaluate different regulatory approaches for dealing with environmental problems;
  • Explain the differences between command-and-control methods and methods that use economic incentives to reduce pollution;
  • Explain the linkages between population growth, poverty, and environmental degradation;
  • Apply the theories discussed in class to empirical evidence.

Generic skills

On successful completion of this subject, students should have improved the following generic skills:

  • High level of development: oral communication; written communication; collaborative learning; problem solving; team work; application of theory to practice; critical thinking; evaluation of data and other information.
  • Moderate level of development: interpretation and analysis; synthesis of data and other information; accessing data and other information from a range of sources; receptiveness to alternative ideas.
  • Some level of development: statistical reasoning; use of computer software.

Last updated: 18 January 2025