This course provides an overview of environmental economics by introducing analytical methods and tools to analyse environmental problems and identify policy solutions. The first part of the course provides a microeconomic foundation of environmental economics, with a focus on market efficiency and market failures. The second part introduces environmental policy decision tools such as benefit-cost analysis and cost-effectiveness criterion. In particular, this part focuses on benefits estimation including revealed preference approaches and stated preference approaches. The third part discusses environmental regulation, with topics covering command-and-control regulation, market-based approaches, and behavioural interventions. The challenges of applying economic instruments to real world environmental problems will be also discussed, such as time and space, risk and uncertainty, compliance and enforcement, etc. This course is expected to stimulate critical thinking about environmental challenges and policy solutions.

Objective:To enhance students understanding on the economic dimensions of environmental problems, environmental valuation techniques, environmental policy instruments and their implications on development planning.

Mode of delivery: The course will be delivered through lectures, group exercise and presentations.