Learning objectives
The objective of this course is to provide an economic analysis of the relations linking the
environmental system and the economic system. The issues related to the market failures will
be investigated and the economic tools for orienting the polluter behaviour will be discussed
(taxes, subsidies, pollution entitlements). Finally, the theme of sustainable economic
development will be discussed in order to define a development model more compatible with
the the natural resource availbility.
Course unit content
I PART
ENVIRONMENTAL ECONOMICS
1. Environment and economic system
1.1 The environment: from free resource to economic good
1.2 Environmental resources and natural resources
1.3 Neoclassic economics and environmetal econmics
1.4 Economic system and sustainable development
1.5 Market failures
2. The optimal use of natural resources according the economic theory
2.1 Pubblic goods and externalities
2.2 Regualation of environmental externalities
2.3 Evaluation of the environmental goods
2.4 Methods for measuring environmental value
II PART
TOOLS FOR ENVIRONMENTAL POLICY
3. The definition of the environmental policies
3.1 The polluter payer principle
3.2 The environmental policy tools
a) The optimal tax
b) The Coase's theory
c) The subsidies
d)The pollution entitlements
3.3 The Kyoto protocol
Bibliography
Book of reference
R.K. Turner, D.W. Pearce, I. Bateman, Economia Ambientale, Il Mulino, Bologna, 2003.
Suggested books
G. Panella, Economia e Politiche dell’ambiente, Carocci Editore, Roma, 2002;
D.W. Pearce, R.K. Turner, Economia dell’Ambiente e delle Risorse Naturali, Il Mulino,
Bologna, 1991;
T. Tietenberg, Environmental and Natural Resource Economics, Pearson Education, 2003.
Assessment methods and criteria
The exam will be organized on the basis of written test
