Authorised by Academic Registrar, April 1996
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-excludability, and how they are linked to environmental problems; recognise markets and government planning as alternative signalling and incentive mechanisms for coordinating peoples' use of natural resources, and be able to explain the conditions under which each works well and poorly; be able to evaluate critically arguments for both regulatory and market-based solutions to environmental problems.
Synopsis Microeconomic theory is used to provide insights into the causes of environmental problems in Australia and overseas, and possible avenues for resolution of environmental disputes. Markets and governments as alternative signalling and incentive mechanisms; economic growth, the environment and sustainability; limitations of market and government coordination of natural resource use; valuation of unpriced environmental goods, cost-benefit analysis of environmental changes and the problem of uncertainty; discussion of policy options for solid wastes and recycling, local and global pollution problems and management of `commons' resources such as fish and wildlife.
Assessment Written (6000 words): 100%