Ateneo - UPO

Economics and Environmental Policy addresses the relationship between the economy and the environment in its many aspects. The causes of environmental degradation and control policies are analyzed, with particular attention to the formulation of collective choices, to the evaluation of environmental assets, to the various regulatory methodologies, to the sustainable management of natural resources. Alongside an analysis of the environmental problems that have emerged in recent years, a series of control, evaluation and regulatory methods are proposed.

N. Gregory Mankiw e Mark P. Taylor, Principi di economia, ottava edizione italiana, Zanichelli, Bologna 2022, capp. 1-3
R. KERRY TURNER, DAVID W. PEARCE, IAN BATEMAN, Economia ambientale, Il Mulino, Bologna, 2003.
Material suggested during the lectures
For further information, please consult the course page on D.I.R.: https://www.dir.uniupo.it/

By leveraging the knowledge and skills already acquired by students during the first year, the course emphasizes the relationship between economy and the environment in order to identify the characteristics of a development that can be defined as sustainable also from this point of view.

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To reach the objectives of the course, the following teaching methods will be adopted:
• Lectures, to illustrate the main arguments that the students should know;
• discussion of cases to verify that knowledge is followed by an understanding of the main issues, also in terms of the ability to collect and interpret data in order to critically evaluate and express judgments on: a) the relationship between man and environment; b) the causes of environmental degradation; c) how natural resources should be managed; d) what are the most suitable policies to contain the negative effects of human activity on the environment
• seminars to allow for an in-depth study of some specific topics
• Testimonials, so that students can meet and interact with innovators and/or experts to understand how the knowledge acquired during the course is met in practice;
• Presentations by group of students (potentially in English) to verify their capacity of analysis, synthesis, critical judgement and communication.

Class attendance is optional, but recommended.
Students, who attend lectures will have, additional possibilities if they sit the exam at the end of the course.
Students with physical disabilities, Learning Disabilities or Special Education Needs can request specific services and tools via the Staff Sviluppo e Coordinamento Carriere e Servizi alle Studentesse e agli Studenti, consulting the University webpage: https://www.uniupo.it/en/services/services-students-physical-or-learning-disabilities
Students with disabilities, learning disabilities or special education needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities, concerning academic aspects.

The exam questions are open and intend to verify whether the student knows, understands and is able to use theoretical models to critically evaluate and make judgments on: a) the man-environment relationship; b) the causes of environmental degradation; c) how natural resources should be managed; d) what are the most suitable policies to contain the negative effects of human activity on the environment.
Students have to answer to 3 open questions within 60 minutes.
Students, which have actively attended most of the classes and sit the exam during the winter session, can substitute one question with a class presentation.

Part one: Economy and environment:
I. The extended economy.
II. Environment and ethics.
III. Economic growth, population growth and the environment.
IV. Sustainable development.
Part two: The causes of environmental degradation:
V. The functioning of the markets and the causes of their failure.
VI. The failure of public intervention.
Part Three: The cost-benefit analysis:
VII. Cost-benefit analysis.
VIII. The evaluation of the interest in nature.
IX. Coping with uncertainty.
Part Four: The economic control of the environment:
X. The use of the market to protect the environment.
XI. The establishment of taxes for the use of the environment.
XII. Ecological taxes.
XIII. Trade in environmental permits.
XIV. The setting of environmental standards.
Part five: Natural resources:
XV. Renewable resources.
XVI. Non-renewable resources.

At the end of the lessons the students will have a precise knowledge of how economic science analyzes and tries to solve environmental problems. In particular, they will be able to evaluate the relationships between the economic system and the natural environment and the impact of the behavior of economic agents (individuals and companies) on the environment, in order to identify useful solutions to the problems that are generated by externalities (eg pollution).