EAE6065 - Environmental Economics I (2026)

Environmental economics concentrates on the trade-offs involving social choices and resulting environmental consequences. This course will start by characterizing environmental problems from an economics perspective. In doing so, we will discuss the key sources of market failure that underlie such problems. Next, we will discuss canonical policy recommendations, some of their limitations and applications in real economies. Finally, we will discuss welfare measures of changes in environmental quality, a basis for environmental policy evaluation. The discussion of the key concepts for economic analysis of the environment will be combined with the discussion of empirical evidence from the economics literature.