Course Contents

1. Introduction  What is environmental economics; review of microeconomics and welfare economics 2. Limitation of Market  Excludable and rival goods, common pool resources and public goods 3. The Theory of Externalities  Pareto optimality and market failure in the presence of externalities; property rights and the Coase theorem 4. Valuing the Environment: Methods  Introduction: theoretical aspects, Economic valuation of the environment: methodologies and Applications 5. Benefit–Cost Analysis and Other Decision-Making Metrics  Framework of BCA and its applications, Divergence of Social and Private Discount Rates, Cost-Effectiveness Analysis, Impact Analysis 6. The Design and Implementation of Environmental Policy  Overview; Pigouvian taxes and effluent fees; tradable permits; choice between taxes and quotas under uncertainty; selection of environmental policy instruments; implementation of environmental policy 7. International Environmental Problems  Trans-boundary environmental problems; global pollution; economic significance of biodiversity; economics of climate change; trade and environment 8. Measuring the Benefits of Environmental Improvements  Non-Market values and measurement methods; risk assessment and perception 9. Contemporary Issues in Environmental Economics with Reference to Pakistan  Energy crisis, Water footprints, Forests, Fisheries, Economics of Pollution 10. Sustainable Development  Concepts; Sustainability of Development, The Growth–Development Relationship measurement (conventional and alternative)

Course Synopsis

This course studies the application of economic analysis to the management of the environmental and natural resources. We will consider the role of economic theory in understanding and solving environmental and resource problems. Topics that may be covered include: air and water pollution, sustainability, renewable and non-renewable resource management, and the impact of trade. The objective of the course is to look at environmental issues from an economic perspective and to provide an overview of the economic tools that are used to address environmental problems.

Course Learning Outcomes

This course explores the proper role of government in the regulation of the environment. It will help students develop the tools to estimate the costs and benefits of environmental regulations. These tools will be used to evaluate a series of current policy questions, including: Should air and water pollution regulations be tightened or loosened? What are the costs of climate change in the Pakistan and abroad? Is there a "Race to the Bottom" in environmental regulation? What is "sustainable development"? How do environmental problems differ in developing countries? Are we running out of oil and other natural resources? Should we be more energy efficient?