FOR15 Environmental Economics and Markets

• Topics

  This course in environmental economics if focused on the needs of the firm. It includes how economic tools can be used to assess environmental priorities, and in consequence how the firm can navigate these and is affected. It also places in context how the firm's markets are affected by environmental problems and environmental policies, directly and indirectly.

  This course uses techniques from economics to analyse environmental policy questions. A more advanced course more specialized towards international problems is given at the master level (ENE423 Economics of the Environment and Climate).

  This course in environmental economics introduces the knowledge, tools, and skills necessary to analyze sustainability and pollution in an economic framework. Given the subject, sustainability is an integral part of the entire course.

• Learning outcome

  Knowledge:

  Upon successful completion, the students understand

  • how environmental problems can be modeled as market failures
  • how common government policies such as (among others) taxes and subsidies can be used to correct such market failures by appealing to the firms’ self-interest.

  Skills:

  Upon successful completion, the students

  • Can apply their understanding of environmental problems and government policy to build and analyze economic models that help in designing optimal government policy
  • Can use the idea of market failure and how it is corrected, to focus on the firm in its self-interest
  • Are able to use tools from economics to analyse environmental policy questions
  • Are able to analyse the role of a broader societal interest in the firm, its owners and other stakeholders
  • Are able to analyse how the firm and its stakeholders are likely to engage in dialogue on policy
  • Know the basic methodological challenges and methods used in prioritizing environmental problems and protection
  • Understand the institutions and political economy of environmental issues, including the basic notions of property rights and liability
  • Should be able to study problems pertaining to environmental pollution and sustainability using economic techniques

  General Competence:

  Upon successful completion, the students can

  • use the abovementioned concepts and techniques in an applied setting and communicate their findings and results.
  • understand the economic mechanisms driving environmental problems.

• Teaching

  The course consists of lectures and a home assignment.

• Recommended prerequisites

  Some facility in economic analysis is advisable, but it will also be taught.

• Credit reduction due to overlap

  None.

• Compulsory Activity

  Course approval is obtained upon attending 2/3 of the lectures.

  Old course approvals are still valid.

• Assessment

  4 hour school exam on paper.

• Grading Scale

  A - F

• Literature

  Will be provided, parts of Kolstad's book Environmental Economics.

• Permitted Support Material

  Calculator 

  One bilingual dictionary (Category I) 

  All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material https://www.nhh.no/en/for-students/regulations/https://www.nhh.no/en/for-students/regulations/ and https://www.nhh.no/en/for-students/examinations/examination-support-materials/https://www.nhh.no/en/for-students/examinations/examination-support-materials/