Course Description

440.650 - Environmental & Resource Economics

[formerly 440.640] Beginning with the concept of sustainability, the course develops a framework for an economic assessment of environmental problems including the notion of market failure, valuation of environmental resources, and policy design issues associated with using alternative economic incentives and instruments. The second part of the course examines principles of the economically efficient management of non-depletable and depletable (e.g., fossil fuels, natural ecosystems) resources. Various applied settings are used to demonstrate the principles developed in the course. Prerequisites: 440.601 Microeconomic Theory and Policy. Corequisite: 440.606 Econometrics.