20110899 - Environmental and Resource Economics

The course aims to provide an understanding of the economic principles related to the management of natural resources and the environment, with particular focus on regulation and public policy, as well as the broader legal challenges involved, such as potential sources of conflict and litigation.
Students will acquire the economic tools needed to analyze issues related to local and global pollution, climate change, the sustainable use of exhaustible and renewable natural resources, and the exploitation of extraterrestrial resources.
By the end of the course, students should be able to answer the following questions: What are the main differences between environmental resources and other economic goods? Why does the market fail to properly allocate environmental resources without appropriate regulation or clear property rights? What policy tools can public authorities use to address pollution and environmental degradation? How do different policies compare in terms of efficiency, intergenerational equity, and social justice? How is the optimal extraction rate of exhaustible and renewable natural resources determined? What are the implications of political decisions regarding the sustainable management of resources? What are the main economic issues related to the exploitation of space resources?
teacher profile | teaching materials

Programme

Part I: Introduction to Environmental and Natural Resource Economics

Resources, environment, and economic development

The theory of environmental externalities

Common resources and public goods

Circular economy

Part II: Economics and Policies for Pollution Control

Pigouvian taxes and subsidies

The trade of environmental permits

Compensation for environmental damage

Setting environmental standards and experimentalist governance

Market-based approaches to environmental protection

Part III: Climate Change

Global climate change: science and economics

Energy transition and adaptation strategies

Policy responses to climate change

Carbon credits and greenwashing

Climate justice and intergenerational equity

Part IV: Sustainability and Natural Resources

Agriculture, food, and the environment

Non-renewable resources: scarcity and abundance

Use and management of renewable resources

Part V: Space Economics

The economics of space: extraterrestrial resources and the challenge of space sustainability

Space externalities: managing space debris and environmental impacts

Other market failures in the exploitation of extraterrestrial resources

Core Documentation

• Turner, R.K, Pearce, D. W., e Bateman, I. “Economia Ambientale”, Il Mulino, 2003

Additional teaching materiale on Moodle.

Reference Bibliography

• The Core Team - Economy 1.0- Unit 20 – The Environment • Harris J.M. and Roach B. (2022), Environmental and Natural Resource Economics: A Contemporary Approach, Routledge New York. • Tietenberg, T. “ Environmental and Natural Resource Economics”, Routledge, 2023.

Attendance

Class attendance is required in accordance with university regulations.

Type of evaluation

he assessment methods are designed to verify the achievement of the learning objectives and, in particular, the understanding of the fundamental concepts of environmental and natural resource economics, as well as the related analytical and applied tools. In assigning the final grade, several key factors will be taken into account. Among these, the level and depth of knowledge of the topics covered are of primary importance, together with the ability to critically analyze environmental and economic issues, demonstrating an informed understanding of their theoretical and practical implications. The use of specific and appropriate terminology, reflecting mastery of the economic and legal concepts addressed, will also be evaluated. These elements will jointly determine the final grade, reflecting a thorough assessment of the knowledge and skills acquired. Assessment in ordinary and extraordinary sessions The assessment consists of an oral examination covering the entire program. Registration: students are required to register for the exam through GOMP. Registration closes three days before the exam date, and late registrations will not be accepted. Ongoing assessment Presentations and active participation in practical activities (case study discussions, debates, and simulations) are foreseen. The evaluation will be completed with a short oral examination to be taken in one of the exam sessions immediately following the course delivery period. Registration: students are required to register for the exam through GOMP. Registration closes three days before the exam date, and late registrations will not be accepted.