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Environmental Economics

Code 16285
Year 1
Semester S1
ECTS Credits 6
Workload TP(30H)
Scientific area Economics
Entry requirements No exigible
Learning outcomes Objectives:
1. To provide an overview of the Economics of Environmental Policy.
2. To establish objectives for choosing alternative policy instruments.
3. To use economic models and knowledge to evaluate environmental policies and problems.
4. To highlight the diversity in the nature and context of environmental problems.
5. To discuss important facts and documents of Portuguese and EU environmental policy.
6. To discuss different economic and political approaches to the relationship between economic growth and the environment.
7. To discuss relevant economic topics concerning the relationship between international trade and the environment.
8. To foster a spirit of autonomous research and critical analytical reasoning through quantified applied economic analysis.
Syllabus 1.Introduction
2. Fundamentals of welfare economics
2.1. Public goods
2.2. Externalities
2.3. Efficiency and equity
2.4. Public choice
3- Environmental Control Theory
3.1.- Coase Theorem
3.2- Pigouvian taxation
3.3. Pareto Optimal Pricing rules
4- Environmental policy Instruments
4.1- Efficiency/Cost-effectiveness. How to evaluate policies?
4.2 - Cost effective pollution control instruments
5- Managing Global Commons
6. Economic Growth and Environment
6.1 Economic approaches
6.2 Ecoefficiency and relative and absolute decoupling
6.3 Environmental Kuznets curve: assumptions and empirical evidences
Main Bibliography Pearce, David W.; Turner, R. Kerry; Economics of Natural Resources and the Environment, Harvester Wheatsheaf, 1990
Hanley, N., Shogren,J., White, B., Environmental Economics: In theory and in Practice, MacMillan Press Limited, 1997
Kolstad., C., Environmental Economics, Oxford University Press, 2000
Field, Barry C.; Field, Martha K.. Environmental Economics – An Introduction, McGraw-Hill, 2002 (3rd ed.)
C, Perman, R., Yue Ma, J. McGilvray, and M. Common, Natural Resource and Environmental Economics, Pearson, Addison Wesley,
3rd edition, 2003.
Scarcity and Growth Revisited, Simpson, D., M. Toman, and R. Ayres, eds., RFF, 2005.
T, Tietenberg, T. and L. Lewis, Environmental and Natural Resource Economics, 8th ed., Pearson International Edition, 2009
Teaching Methodologies and Assessment Criteria Lessons on topics based on illustrative examples, reviews, and discussion. On average, students should have approximately 10 hours of work per week outside the classroom. The course schedule and list of bibliographic references will be available on the course page. In the teaching-learning component, the assessment will consist of a research paper with a weighting of 50% in the final grade and a final exam with a weighting of 50%.
Final exams to be taken during the regular period and/or resit will have a weighting of 100%.
Language Portuguese. Tutorial support is available in English.
Last updated on: 2026-01-06

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