Accessibility statement

Applied Environmental Economics - ENV00070M

« Back to module search

  • Department: Environment and Geography
  • Module co-ordinator: Dr. Julia Touza-Montero
  • Credit value: 10 credits
  • Credit level: M
  • Academic year of delivery: 2017-18

Module summary

This course introduces empirical issues at the current frontiers of research in environmental economics. General topics may include climate policy, international environmental agreements, economics of nature conservation, payments for ecosystem services, environmental policy evaluation, trade and environment and natural capital accounting.

Module will run

Occurrence Teaching cycle
A Spring Term 2017-18

Module aims

This module provides an economic analysis to address natural resources and environmental policy issues. It provides students with a detail exposure to the economic theory of environmental policy, including the challenges of international environmental agreements, and it covers novel approaches such as, natural capital accounting, payments for ecosystem services, and international emission tradable scheme. In terms of applications, it focuses on the economics of climate change and nature conservation. This course involves practitioners from industry and Stockholm Environment Institute. The course comprises of lectures, discussion sessions and in-class assignment breakout groups.

Module learning outcomes

By the end of the module, successful students will

  • apply economic tools for ecosystem management
  • explain advance concepts and approaches in environmental policy and natural resource management
  • discuss and analyse current national and international policy on climate change and nature conservation
  • evaluate environmental regulation attending to the challenges such as uncertainty, and imperfect and asymmetric information.
  • Understand and critically evaluate current research papers in environmental economics and be able to pursue their own research on this area.

Module content

Lecture 01 – Economics Tools in Environmental Management
Lecture 02 – Trade and Environment I
Lecture 03 – Trade and Environment II
Lecture 04 – Environment and Development nexus: Sustainability Indicators & Environmental Accounting
Lecture 05 – Climate Change Mitigation Policies: Overview
Lecture 06 – Climate Change Mitigation Policies: from traditional regulation to market approaches
Lecture 07 – Climate Change Mitigation Policies: EU permits in action and regulation under uncertainty
Lecture 08 – International Environmental Cooperation: Strategic Interactions & Global Challenges 
Lecture 09 – International Environmental Cooperation: Strategic Interactions & Global Challenges II
Lecture 10 – Climate IEA: from Kyoto to Paris
Lecture 11 – Economics of Biodiversity Conservation: Ecosystem Services I
Lecture 12 – Economics of Biodiversity Conservation: Ecosystem Services II
Lecture 13 – Linking consumption to impacts: application to biodiversity
Lecture 14 – Economics of Biodiversity Conservation: Payments for Ecosystem Services
Lecture 15 – Accounting for Cultural Ecosystem Services in Ecosystem Assessments
Lecture 16 – Sustainability and Resilience: Policy and Practice

Seminar 01 – Marginal abatement cost curves
Seminar 02 – Social Cost of Carbon
Seminar 03 – EU emission trading scheme
Seminar 04 – Sustainable supply chains
Seminar 05  – Ecosystem Services conservation benefits and costs


Task Length % of module mark
N/A 80
Oral presentation/seminar/exam
Individual Presentation
N/A 20

Special assessment rules



Task Length % of module mark
Essay 3000 words
N/A 100

Module feedback

Students will receive their marks and feedback within four weeks. The module leader will include comments on assigned coursework about the structure, understanding, use of sources, argument development and language to provide students with constructive information that will enable them to improve on future work. Feedback on formative assessment is also available. Students will be able to seek advice on good practices and improvement actions by visiting the offered office hours.

Indicative reading

Some readings will be posted in the vle; others you will given the citation in the lectures material and students are expected to retrieve the reading through the library website. The starred references on the lectures’ notes are required reading. Further readings are included to help those who are interested in exploring a topic in greater depth, to provide a range of perspectives, and can be used also as a starting point on the literature search for students' assessment.
For most of the basic environmental economic theory we will draw on:
Kolstad (2011) Environmental Economics. 2nd edition. Oxford University Press.
Perman et al (2011) Natural Resource and Environmental Economics. 4th edition. Pearson.
Other useful references for material on the global environmental challenges address at various points in the module are: 
Barret S. (2007) Why to Cooperate? The Incentive to Supply Global Public Goods. Oxford University Press.
Perrings C. (2014) Our Uncommon Heritage: Biodiversity Change, Ecosystem Services and Human Wellbeing. Cambridge University Press.
Tol R.S. (2014) Climate Economics: Economic Analysis of Climate Change and Climate Policy. Edward Edgard.
Stern, N 2006 What is the Economics of Climate Change. World Economics, 7(2)

The information on this page is indicative of the module that is currently on offer. The University is constantly exploring ways to enhance and improve its degree programmes and therefore reserves the right to make variations to the content and method of delivery of modules, and to discontinue modules, if such action is reasonably considered to be necessary by the University. Where appropriate, the University will notify and consult with affected students in advance about any changes that are required in line with the University's policy on the Approval of Modifications to Existing Taught Programmes of Study.