Environmental economics
Dr Ian Wills
6 points * Two 1-hour lectures and one 1-hour tutorial per week * Second semester * Clayton * Prerequisites: ECO1020 or ECO1100 and ECO1110, or equivalent
Objectives On completion of this subject students should be able to explain how the economy and the environment interact; understand the economic concepts of property rights, externalities and non-excludabililty, and how they are linked to environmental problems; appreciate that deficiencies in both market and government coordination of resource use contribute to environmental problems; be able to evaluate critically arguments for both regulatory and market-based solutions to environmental problems.
Synopsis Application of microeconomic theory to analyse environmental problems and possible solutions; markets and governments as alternative signalling and incentive mechanisms; resources and resource scarcity; limitations of market and government coordination of natural resource use. Discussion of policy options for solid wastes and recycling, local and global pollution problems, protection of biodiversity, management of stocks of fish and other `commons' resources. Valuation of unpriced environmental goods and cost-benefit analysis of environmental changes.
Assessment Essay (1250 words): 15% * Assignment (750 words): 15% * Examination (2 hours): 60% * Tutorial participation and contribution: 10%