EC334-Environmental Economics

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Autumn term module
Pre-requisites: EC201 Intermediate Microeconomics or EC201NU Intermediate Microeconomics
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Stefania Lovo
Email: s.lovo@reading.ac.uk

Type of module:

Summary module description:

The main focus of this course is on externalities resulting from human activity. These include among others climate change, pollution, natural resource depletion, and biodiversity loss. Topics will be shaped around two core areas: 

• Measuring externalities and their effects on human welfare.


• Designing and evaluating policy instruments to tackle negative externalities.

Aims:

This module aims to provide an overview of the theories, methodological tools, and evidence to understand contemporary environmental problems such as climate change, pollution, and sustainable development. The framework taught in the module can be used to evaluate various important policy questions such as: should air regulations be tightened or loosened? Does economic development necessarily result in a higher environmental damage? Is globalisation bad for the environment? Are we running out of oil and other natural resources? What are the policy tools to address climate change?

Assessable learning outcomes:

By the end of the module, the student will be able to demonstrate:  

• An understanding of the issues concerning the environment, climate change and natural resources and how they affect our economies and societies


• The ability to solve and manipulate a variety of diagrammatic and algebraic models in environmental economics, and critically evaluate those models 


• Knowledge of methods and tools used to value environmental resources.


• The ability to critically evaluate current and proposed policies dealing with climate change and the environment


• An understanding of the limitations of economic analysis to provide guidance on environmental issues


• The ability to express an informed view regarding the potential of economics to help societies achieve their environmental goals

Additional outcomes:

The ability to use the academic literature to understand causes and relationships, the ability to apply economics to real life problems, the ability to critically assess policy interventions.

Outline content:

• Overview of climate change, environmental and natural resource problems. 


• Natural resources and energy economics: the management of common resources and the modelling of renewable and non-renewable resources.


• Cost and benefit analysis: evaluation and discounting.


• Environmental policy: design and impact.


• Globalisation and the environment: trade, international agreements, and global development.

Global context:

This module will consider evidence and policy examples drawn from a wide range of countries. 

Brief description of teaching and learning methods:

This module is delivered through 10 two hour lectures. Lectures will be used to present the material but will also involve an interacting component with in-class exercises, simulations and discussions. 

Contact hours:

	Autumn	Spring	Summer
Lectures	20
Seminars	3
Guided independent study:	177
Total hours by term	200	0	0
Total hours for module	200

Summative Assessment Methods:

Method	Percentage
Written assignment including essay	50
Class test administered by School	50

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

A take home assignment accounts for 50% of the module mark.

Students will complete an end-of-term test which will include essay type questions and some problem sets.  This will count towards the remaining 50% of the module mark.

Formative assessment methods:

Penalties for late submission:

The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:

A minimum overall mark of 40%.

Reassessment arrangements:

Re-assessment is by resubmission of coursework which will be required by the end of the re-examination period in August/September. 

Additional Costs (specified where applicable):

1) Required text books:  :  Natural Resource and Environmental Economics (2012) by Roger Perman, Yue Ma, Michael Common, David Maddison, James Mcgilvray. Available online through the library

2) Specialist equipment or materials: 

3) Specialist clothing, footwear or headgear: 

4) Printing and binding: 

5) Computers and devices with a particular specification: 

6) Travel, accommodation and subsistence: 

Last updated: 30 March 2023