The objective of this course is to equip students with the theoretical knowledge and empirical tools necessary to evaluate environmental policies. The course addresses key questions, such as: What are today’s major environmental problems? Why do these problems require government intervention, and what policy instruments are available to address them? How can we evaluate the effectiveness of environmental regulations, and how can we measure their benefits and costs? How can environmental justice considerations be incorporated?
The first part of the course outlines the economic theory of environmental policy and examines the characteristics of different policy instruments (e.g., taxes, emission permits, standards). It also introduces the concept of cost-benefit analysis and methods for measuring the demand for environmental goods. These theories, concepts, and methods are illustrated with practical examples.
The second part covers empirical tools for environmental policy analysis. It focuses on the application of econometric techniques to assess the effectiveness of environmental regulations and to quantify their costs and benefits. Students will learn to use these techniques through hands-on computer exercises with real-world data. In addition, students will become familiar with spatial data analysis and relevant data sources.