Environmental Economy

Basic Microeconomics

To achieve the objectives of the course and the acquisition of the desired skills by the students, the teaching/learning process will be based on the articulation of different methodologies: 1. Lectures; 2. Practical applications (exercises, analysis of texts, case studies); 3. Research activities oriented by the teacher.

1-Understands the concepts and the basics of Environmental Economics

2 – Know the methods most frequently used to internalize environmental externalities

3 – Uses with proficiency the concepts and methods of environment and natural resources evaluation

4 – Understand the concepts and the economic and financial decision-making instruments regarding the management of natural resources.

1. Introduction to Environmental and Natural Resources Economics

1.1. Concepts and objects of study

1.2. Natural resources and the environment in economic theory

1.3. Economic typology of natural resources

1.4. Relationship between the economy and the environment

1.5. Sustainability concepts

2 . Revision and extension of microeconomics concepts

2.1. Market equilibrium

2.2. Willingness to pay

2.3. Benefits and costs

2.4. Public Goods

2.5. The notion of externality

2.6. Externalities and economic efficiency

2.7. Externalities, property rights, and markets

3 . Objectives and instruments of environmental policy

3.1.  Internalization by merging management

3.2. Coasian negotiations

3.3. Pigouvian tax

3.4. Quotas and emission rates

3.5. Emission cap and trade 

4 . Environmental valuation

4.1. Total economic value

4.2. Cost-benefit analysis

4.3. Environmental valuation methods

5. The management of natural resources

5.1. The question of common property and free access

5.2. Private renewable resources

NAO

Hanley, N.; Shogren, J.; White, B. (2007). Environmental Economics in Theory and Practice. Second Edition. New York: Palgrave Macmillan.

Hackett, S. (2015). Environmental and Natural Resources Economics: Theory, Policy, and the Sustainable Society. Fourth Edition. London and New York: Routledge.

• Klemperer, W. (1996). Forest resource economics and finance. New York: McGraw-Hill, 1996.

Tietenberg, T.; Lewis, L. (2018). Environmental and Natural Resource Economics. 11th Edition. New Jersey: Pearson Education, Inc.

Quintela, C. (1997). Economia do Ambiente: Principais Conceitos Teóricos, Departamento de Economia Agrária e Sociologia Rural do Instituto Superior de Agronomia, Universidade Técnica de Lisboa. Documento de Trabalho nº 9.