Efficiency, well-being and market failures
Objectives of public intervention: the "efficient level" of pollution; Comparative analysis of the instruments of public intervention
Evaluate trade-offs: Cost-benefit analysis
Assigning value to the environment: methods
Climate Change Economics and Policy: Limits to international cooperation
European and national energy-climate policies: impact assessment
Electricity market operation and main reforms
Emissions Trading Scheme
Policies for renewables
(PMMMC) Perman, Ma, Maddison, Common, McGilvray (4th edition), Natural resource and Environmental Economics, Pearson. Cap. 1-7; Cap. 9; Cap 11-12
(TL) Tom Tietenberg, Lynne Lewis (9th Edition), Environmental & Natural Resource Economics, Pearson Cap. 3-7; Cap 9; Cap 14-16; Cap 20-21
Slides and article (research papers provided in moodle)
Learning Objectives
The course will allow students to become familiar with the main environmental economics issues. Thanks to the presentation of the fundamental economic paradigms, students will learn to interpret environmental phenomena according to economic criteria, and will acquire the necessary tools to analyze and evaluate the main environmental policies. The aim of the course is to stimulate the student: i) to a critical reflection of environmental problems, assessing their impact in terms of trade-offs, costs and benefits; ii) to a thorough investigation of complex phenomena; iii) effective communication of the knowledge acquired. Particular attention will be paid to the issue of climate change and policies aimed at promoting a transition to a low-carbon economic model. In particular, policies to support renewable sources and energy efficiency.
The first part of the course will be theoretical. The main microeconomic and macroeconomic approaches to the environmental question will be presented, respectively: i) environmental externalities and legal-economic tools to internalize them; ii) the limits of growth, technological innovation and sustainable development. The second part of the course will be applied. During the course we will analyze the problems of climate change, the depletion of resources and energy security, and the relative economic policies adopted in Europe and Italy will be evaluated to deal with them. The impact of these policies will be analyzed with particular reference to the electricity market, which will discuss the organizational structure and the main reforms that have affected it in recent decades.
Prerequisites
The student must know the fundamental principles of microeconomics and be familiar with graphical analysis and with mathematical concepts (first derivatives)
Teaching Methods
frontal lectures will be accompanied by a discussion of current topics, active simulations, analysis of European and national policies, presentation of case studies and / or academic articles by students.
Further information
Type of Assessment
Oral exam and possibility of group work for attending students. Possible intermediate exam to be agreed with the attending students
Course program
• Introduction to the economy of the environment (PMMMC; chapter 1, chapter 2)
• Efficiency, well-being and market failures (PMMMC chapter 4)
• Objectives of public intervention: the "efficient level" of pollution; Comparative analysis of public intervention tools (PMMMC chap. 5-7; chap. 5 to 5.9 included)
• Evaluate trade-offs: Cost-benefit analysis (TL, chap. 3; or PMMMC chap. 11)
• Assigning a value to the environment: methods (TL, chap. 4; or PMMMC chap. 12)
• Sustainability - relationship between growth and limited resources, the role of technological progress. (PMMMC chap. 2 or TL chap. 20-21)
• Long-term energy scenarios: the World Energy Outlook
• Water and water services (TL Cap.9)
• Climate Change Economics and Policy: Limits to international cooperation (PMMMC chap.9; TL chap. 16)
• European and national energy-climate policies: impact assessment (TL chap. 14-15)
o Operation of electricity markets and main reforms
o Emissions Trading Scheme
o Renewable policies