Environmental Economics and Policy
A.Y. 2025/2026
Learning objectives
This course provides an introduction to the principles of environmental economics, with a focus on policy applications. The principal problem in any economics course is how to best allocate scarce resources. This holds true for environmental economics as well. However, environmental resources differ from other goods that economists study in that there is usually no market for them. Thus, government policies are needed to maintain and improve environmental quality. To appreciate the above aspects the fundamental concepts of Microeconomics necessary to understand the functioning of the economic system, the behavior of its agents, the market mechanism, the benefits of the exchange, as well as the cases where markets fail will be provided.
Expected learning outcomes
At the end of the course the student will have familiarized her/himself with the fundamental concepts of Microeconomic theory necessary to understand the functioning of the economic system, the behavior of its agents, the market mechanism, the benefits of the exchange, as well as the cases where markets fail. These concepts are instrumental to the comprehension of environmental policies and of the environmental sustainability of economic systems. The student will therefore have acquired competence on the fundamentals of economic analysis of environmental problems and on the objectives and instruments of pollution control policies.
Lesson period: First semester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
First semester
Course syllabus
Students will find on the course Ariel platform the detailed course calendar and the lecture slides, containing all the information on required readings for each lecture.
The course will cover the following topics:
1. Welfare economics and the environment
2. Sustainability
3. Market failures, externalities and environmental degradation
4. Environmental policy instruments
5. Evaluation of environmental goods and cost-benefit analysis
6. Air pollution: impacts, regulation, and environmental justice
7. Behavioral economics and the environment
8. Development economics and the environment
The course will cover the following topics:
1. Welfare economics and the environment
2. Sustainability
3. Market failures, externalities and environmental degradation
4. Environmental policy instruments
5. Evaluation of environmental goods and cost-benefit analysis
6. Air pollution: impacts, regulation, and environmental justice
7. Behavioral economics and the environment
8. Development economics and the environment
Prerequisites for admission
None.
Teaching methods
Face-to-face lectures, in-class exercises, case studies and in-class discussions, group assignments (project work and presentation).
Teaching Resources
Slides and other course materials will be made available regularly by the instructor on the Ariel platform.
Suggested textbooks are:
Field, Barry, C. and Martha K Field. Environmental Economics, An Introduction: 2024 Release ISE. Available from: VitalSource Bookshelf, (9th Edition). McGraw-Hill Higher Education (International), 2024.
Turner, R. K., Pearce, D. W., & Bateman, I. (1993). Environmental economics: An introduction.
Suggested textbooks are:
Field, Barry, C. and Martha K Field. Environmental Economics, An Introduction: 2024 Release ISE. Available from: VitalSource Bookshelf, (9th Edition). McGraw-Hill Higher Education (International), 2024.
Turner, R. K., Pearce, D. W., & Bateman, I. (1993). Environmental economics: An introduction.
Assessment methods and Criteria
Attending Students
For attending students, the final grade is composed of two components: a group assignment (40%) and a written exam (60%).
Group Assignment: Students will work in groups to write a brief policy memo on an environmental topic. Each group will present their memo in class.
Written Exam: The exam may include a combination of the following:
Multiple-choice questions to assess familiarity with fundamental definitions and concepts in environmental economics
Applied exercises involving the use of economic tools in specific contexts
Short essay questions designed to evaluate a deeper understanding of course content and the ability to draw connections across topics
Non-Attending Students
For non-attending students, the final grade is based entirely on the written exam described above (100%).
For attending students, the final grade is composed of two components: a group assignment (40%) and a written exam (60%).
Group Assignment: Students will work in groups to write a brief policy memo on an environmental topic. Each group will present their memo in class.
Written Exam: The exam may include a combination of the following:
Multiple-choice questions to assess familiarity with fundamental definitions and concepts in environmental economics
Applied exercises involving the use of economic tools in specific contexts
Short essay questions designed to evaluate a deeper understanding of course content and the ability to draw connections across topics
Non-Attending Students
For non-attending students, the final grade is based entirely on the written exam described above (100%).
Professor(s)