SE-307 Environmental and Resource Economics

The course is connected to the following study programs

• Bachelor's Programme in Business Administration
• Master's Programme in Business Administration (5 years)

Recommended prerequisites

SE-213-1 Microeconomics or equivalent.

Course contents

Is there an optimal level of pollution? Why is it hard to reach international climate targets? How can we facilitate a successful transfer from fossil energy to renewable energy? How can we put a monetary value on the goods and services provided by nature? How should common-pool resources be managed? These are some of the questions we will address in this course, by means of economic theory. We will investigate common environmental market failures and economic policy instruments available for correcting them, in the context of air pollution and climate change. Further, we will introduce the framework of social benefitcost analysis (SBCA) and present common methods for putting monetary values on benefits provided by nature (ecosystem services). Finally, we will look at the economic conditions for optimal use of both non-renewable resources (oil, gas, and minerals) and renewable resources (fishery and forestry).

Learning outcomes

Upon successful completion of this course the student should:

• have in-depth knowledge about common environmental market failures and the economic policy instruments available for correcting them.

• be able to explain the concept of externalities and how it leads to differences between private and socially optimal environmental market outcomes.

• understand the role of economic incentives in addressing environmental issues like climate change and the energy transformation.

• have basic knowledge about the framework for comparing benefits and costs in project appraisal, including the impacts on the environment (social benefit-cost analysis).

• have basic knowledge about common methods for the valuation of goods and services provided by nature (ecosystem services).

• have basic knowledge about economic models for optimal use of both nonrenewable and renewable natural resources.

Examination requirements

Approved mandatory mid-semester assignment.

Teaching methods

Lectures and seminars. The total workload is about 200 hours.

Evaluation

The person responsible for the course decides, in cooperation with student representative, the form of student evaluation and whether the course is to have a midway or end of course evaluation in accordance with the quality system for education, chapter 4.1.

Admission for external candidates

No.

Offered as Single Standing Module

Yes, if there are places available.

Admission Requirement if given as Single Standing Module

SE-213 Microeconomics or equivalent is required for enrollment.

Assessment methods and criteria

4-hour written examination. Assessment expression: letter grade, A-F.