In many economic situations, the incentives of individual agents are not aligned with the objective of attaining aggregate economic efficiency, or the maximisation of social welfare. Such situations often lead to market failures that are characterised by environmental degradation or the overexploitation of natural resources.
This course analyses the economic principles underlying the design of efficient environmental policies and the optimal management of natural resources. It identifies conditions under which market failures lead to environmental degradation or to the overexploitation of natural resources, and discusses economic policies that can counteract such market failures. Such policies include imposing taxes on certain economic activities, or allocating property rights that allow these activities to be undertaken. If property rights—which may take the form of pollution permits, or individual quotas for the harvesting of natural resources—are transferable between agents, the trade of property rights between self-interested agents yields economic efficiency as a market-based outcome.
Learning Outcomes
Upon successful completion, students will have the knowledge and skills to:
Upon a successful completion of this course, students should be able to:
- Understand how various market failures may lead to
environmental degradation or the overexploitation of natural resources;
- Use
economic modelling to evaluate various approaches to the design of efficient
environmental policies and of rules for the optimal management of natural
resources;
- Construct and analyse simple dynamic models of natural resource
management.
Other Information
See the course outline on the College courses page. Outlines are uploaded as they become available.
Indicative Assessment
The assessment for this course will consist of a midterm examination, and a final exam
The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.
Workload
Two lectures per week plus tutorials throughout the semester.Requisite and Incompatibility
Prescribed Texts
N.O. Keohane and S.M. Olmstead, Markets and the Environment, Island Press, 2007
Preliminary Reading
W.D. Nordhaus, The Climate Casino: Risk, Uncertainty, and Economics for a Warming World, Yale University Press, 2013
Majors
Minors
Fees
Tuition fees are for the academic year indicated at the top of the page.
If you are a domestic graduate coursework or international student you will be required to pay tuition fees. Tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.
- Student Contribution Band:
- 3
- Unit value:
- 6 units
If you are an undergraduate student and have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). You can find your student contribution amount for each course at Fees. Where there is a unit range displayed for this course, not all unit options below may be available.
| Units | EFTSL |
|---|---|
| 6.00 | 0.12500 |
Course fees
- Domestic fee paying students
| Year | Fee |
|---|---|
| 2017 | $3660 |
- International fee paying students
| Year | Fee |
|---|---|
| 2017 | $4878 |
Offerings, Dates and Class Summary Links
ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.
Second Semester
| Class number | Class start date | Last day to enrol | Census date | Class end date | Mode Of Delivery | Class Summary |
|---|---|---|---|---|---|---|
| 8500 | 24 Jul 2017 | 31 Jul 2017 | 31 Aug 2017 | 27 Oct 2017 | In Person | N/A |
