APME76-Resource and Environmental Economics

Module Provider: School of Agriculture, Policy and Development
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites: A basic training in microeconomics
Co-requisites:
Modules excluded:
Current from: 2021/2

Module Convenor: Prof Elizabeth Robinson
Email: e.j.robinson@reading.ac.uk

Type of module:

Summary module description:

Develop the skill set needed to analyse environmental and resource problems. Learn about environmental policy making. In the computer lab, apply key techniques used by environmental economists such as environmental valuation. In this module, based on microeconomic foundations, we will consider conditions under which tradable permits, taxes, or subsidies might be most effective at controlling pollution; how to best manage natural forests, forest plantations, and fisheries; and how best to deal with international environmental problems.

Aims:

To provide students with the basic tools necessary to understand and demonstrate how and why economic activity and policy affect the natural environment.

Assessable learning outcomes:

By the end of the module students will be able to:Ìý

1. Analyse environmental problems from an economics perspective


2. Apply at least one environmental valuation method


3. Put into practice environmental modelling skills


4. Use simple dynamic optimisation methods in the context of natural resource exploitation

Additional outcomes:

Students will learn through a set of tutorials some of the main applied techniques in resource and environmental economics using statistical software and developing basic programming knowledge (e.g. Gretl, Excel Solver and R).

Outline content:

The module will first contextualise the study of environmental and resource economics, exploring concepts of sustainability, the interdependence of the economy and the environment, and ethical and equity considerations. The module will then focus on environmental pollution, exploring policy instruments designed to ensure an efficient level of pollution. We will spend some time addressing cross-border environmental problems, such as acid rain and global warming; why these environmental problem s are so tricky to deal with; and what policies instruments are available to address these issues. The problem of accounting for the value of environmental goods and services will be discussed in depth. We will cover the theory of optimal resource extraction for both non-renewable and renewable resources.

Brief description of teaching and learning methods:

Teaching will be delivered through a series of 2-hour lectures, which will include also opportunities for students to work in groups and discuss specific issues. A series of computer-based practical sessions will help students familiarise themselves with environmental valuation techniques and simple dynamic optimisation. Material from different textbooks and various articles will be used during this module.

Though a variety of textbooks and articles are used during this mo dule, the key texts used in this module are:

1. Perman, R., Ma, Y., Common, M., Maddison, D. and McGilvray, J., 2011. Natural Resource and Environmental Economics, 4th edn (Harlow, UK.


2. Sterner, T. and Coria, J., 2013.ÌýPolicy instruments for environmental and natural resource management. Routledge.

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

Autumn Term: In-class test (25%)ÌýPractical assignment (25%)

Spring Term: In-class test (25%)ÌýPractical assignment (25%)

Formative assessment methods:
Sample test questions will be put in Blackboard.

Penalties for late submission:

The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy 􀀓Penalties for late submission for Postgraduate Flexible programmes􀀔, which can be found here: