Climate change, environmental degradation and pollution of water and air are among the most important challenges of our time, both globally and locally. Firms and governments allocate large amounts of resources to new green interventions and environmental protection. Do these policies work, or are resources wasted on ineffective pollution control? If so, how can the policies be improved?

Environmental economics looks at how economic activity and policy affect the environment in which we live. Some production and household decisions generate pollution – for example exhaust causes harmful local air pollution and also contribute to global warming. However, pollution from economic activity is not inevitable. Policy can require firms to reduce emissions and encourage people to change their behavior. But, there is a trade-off: changes that provide a cleaner environment will involve some economic costs. How much should we spend on pollution control? It is worth reducing pollution to zero, or should we accept some level of pollution because of the economic benefits associated with it?

This course seeks to equip students – business consultants and political advisors of the future – with analytical skills to make these decisions. Students will learn through lectures, seminar exercises, and individual studies.