Environmental and Natural Resource Economics 7.5 credits

About the course

The course covers the basic economic analysis of natural resources and environmental policy instruments. Natural resources are considered in both renewable forms, such as forests, and non-renewable forms, such as oil. Resource use is analysed within a market framework, taking into account deviations arising from negative externalities (e.g. emissions) and uncertainty. The course also addresses the valuation of goods that are not traded in markets, such as environmental quality and biodiversity, and discusses the challenges associated with their economic valuation. In addition, issues related to sustainable development, economic growth, and socio-economic trade-offs over time are examined.

The theoretical framework is applied to a range of environmental policy problems. Some central questions addressed in the course include: (i) how environmental quality can be valued and related to economic growth; (ii) how emissions can be limited in a socio-economically efficient way; (iii) how long-term societal challenges, such as climate change, can be modelled; and (iv) what sustainable growth means from a socio-economic perspective.