Learning objectives
The strong influence of economic activity on the availability of natural resources requires an analysis of the reasons behind economic behavior and the study of tools to improve the relationship between the economic facts and the environment. The objective of the course is to provide the knowledge needed to interpret the economic reality and its relationship with the environment and natural resources through the study of the market mechanism, individual choice and economic instruments to reduce negative externalities and enhance the positive ones.
The student will tackle a study programme divided in three parts. In the first part will be offered an introduction to microeconomics, about the mechanisms of choice both from the side of the consumer and the producers, and their motivations. The second part has the objective of providing the conceptual keys to understand how environmental issues can be managed within an economic approach. The third and final part of the course allows the learning of the main economic instruments to assess the environmental resources and drive the choices.
Prerequisites
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Course unit content
PART I
Introduction to Microeconomics
1. The market
1.1 Scarcity and prices
1.2 The circular economic system
1.3 The economic models
1.4 The law of supply and demand
1.5 The market equilibrium
2. Consumer Choice
2.1 The budget constraints
2.2 The preferences
2.3 The indifference curves and the consumer’s utility
2.4 The consumer choice
3. The firms and their objectives
3.1 The production function
3.2 The cost function
3.3 The maximization of the economic profit
3.4 The firm and the market: perfect competition and monopoly
PART II
ENVIRONMENTAL ECONOIMICS
1. The environment and the economic system
1.1 The environment from free resource to economic good
1.2 Neoclassical environmental economics
1.3 Economic System and Sustainable Development
1.4 The market imperfections
2. The optimal use of natural resources according to economic theory
2.1 Public goods and externalities
2.2 The regulation of environmental externalities
2.3 Evaluation of environmental goods
2.4 The measurement of environmental value
PART III
THE TOOLS OF ENVIRONMENTAL POLICY
3. The definition of environmental policies
3.1 Sustainable economic development
3.2 The tools of environmental policies
a) The optimal tax
b) The Coase theorem and the negotiating approach
c) Subsidies for non-polluting
3.3 The Cost-Benefit Analysis
Full programme
PART I
Introduction to Microeconomics
1. The market
1.1 Scarcity and prices
1.2 The circular economic system
1.3 The economic models
1.4 The law of supply and demand
1.5 The market equilibrium
2. Consumer Choice
2.1 The budget constraints
2.2 The preferences
2.3 The indifference curves and the consumer’s utility
2.4 The consumer choice
3. The firms and their objectives
3.1 The production function
3.2 The cost function
3.3 The maximization of the economic profit
3.4 The firm and the market: perfect competition and monopoly
PART II
ENVIRONMENTAL ECONOIMICS
1. The environment and the economic system
1.1 The environment from free resource to economic good
1.2 Neoclassical environmental economics
1.3 Economic System and Sustainable Development
1.4 The market imperfections
2. The optimal use of natural resources according to economic theory
2.1 Public goods and externalities
2.2 The regulation of environmental externalities
2.3 Evaluation of environmental goods
2.4 The measurement of environmental value
PART III
THE TOOLS OF ENVIRONMENTAL POLICY
3. The definition of environmental policies
3.1 Sustainable economic development
3.2 The tools of environmental policies
a) The optimal tax
b) The Coase theorem and the negotiating approach
c) Subsidies for non-polluting
3.3 The Cost-Benefit Analysis
Bibliography
- Michael L. Katz, Harvey S. Rosen, Carlo Andrea Bollino, Microeconomia, McGraw-Hill, 2007
- R.K. Turner, D.W. Pearce, I. Bateman, Economia Ambientale, Il Mulino, Bologna, 2003.
Teaching methods
Lectures and exercises
Assessment methods and criteria
Written test
Other information
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