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 and non-monetary valuation of environmental goods and services, providing a critique of these techniques. We then explore how such values might be incorporated into the design and evaluation of environmental policies, as well as macro-economic indicators such as Green GDP measures. The above theories are demonstrated in practice through a series of contemporary environmental policy case studies. The module will draws on the Refinitiv database to illustrate the extent to which environmental indicators are being incorporated into policy and corporate decisions and actions.