Module Information

This module provides an analysis of how economic theory may be used by governments, NGOs and the business sector to help protect and enhance our natural environment.

Basic concepts in economic theory are introduced, so that understanding is developed of how markets are supposed to achieve economically efficient allocations and why, when they fail to do so, environmental degradation often results. The module then explores how governments, NGOs and businesses might intervene to address environmental issues, and evaluates the effectiveness of a range of policy instruments including command-and-control instruments and incentive-based instruments. The module also explores why economists attach importance to the monetary valuation of environmental goods and services, and provides a critique of techniques for doing so. Finally, we explore how such values might be incorporated into the design and evaluation of environmental policies.

The above theories are then demonstrated in practice with detailed assessment of a series of contemporary environmental policy case studies, including agri-environmental policies, biodiversity and ecosystem services, climate change (carbon trading), sustainable business management and `Green? GDP.

• Economic growth and resource use
• Economic paradigms: Neo-classical economics, environmental economics, ecological economics, deep ecology.
• Scarcity, choice and economics systems
• How markets work: demand and supply
• Market failure
• Policy instruments for the environment
• Valuation of the environment
• Policy appraisal and evaluation
• Case studies: agri-environmental policies, biodiversity and ecosystem services, climate change (carbon trading), sustainable business management and `Green? GDP.