Introduction to Environmental Economics and Policy

The objective of the course is to enhance student’s abilities to understand and critically evaluate the inter-linkages between economic activity and natural environment, in theory and in practice. At the macroeconomic level, the notions of growth and development will be examined, in order to define sustainable development and green growth. At the microeconomic level, public goods, common property resources and environmental externalities will be analysed. The rationale for government intervention will be discussed and the various instruments for environmental policy, such as command and control, environmental taxation and tradable emission permits markets, will be presented and evaluated. Furthermore, the international dimension of environmental problems will be examined and the difficulties in engaging in international environmental agreements will be analysed.