• Offered by Research School of Economics
  • ANU College ANU College of Business and Economics
  • Classification Transitional
  • Course subject Economics
  • Areas of interest Economics
  • Academic career PGRD
  • Mode of delivery In Person
  • Co-taught Course

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:

  1. demonstrate an understanding of how various market failures may lead to environmental degradation or the overexploitation of natural resources;
  2. use economic modelling to evaluate various approaches to the design of efficient environmental policies and of rules for the optimal management of natural resources;
  3. construct and analyse simple dynamic models of natural resource management.

Indicative Assessment

  1. Assessment may consist of a Final Exam, mid-semester exam(s), quizzes, assignments or some combination thereof. See the Class Summary for details. (100) [LO 1,2,3]

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Workload

130 hours in total over the semester consisting of lectures, tutorials and private study time.

Inherent Requirements

Not applicable

Requisite and Incompatibility

To enrol in this course you must have previously completed ECON8025. Incompatible with ECON3128.

Prescribed Texts

See Class Summary

Fees

Tuition fees are for the academic year indicated at the top of the page.  

Commonwealth Support (CSP) Students
If you 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). More information about your student contribution amount for each course at Fees

Student Contribution Band:
34
Unit value:
6 units

If you are a domestic graduate coursework student with a Domestic Tuition Fee (DTF) place or international student you will be required to pay course tuition fees (see below). Course tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found 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
Domestic fee paying students
Year Fee Description
2022 $4440 Standard Rate
2022 $3510 Grandfathered Rate*

*continuing students in nominated programs only. See fee website

International fee paying students
Year Fee
2022 $5700
Note: Please note that fee information is for current year only.

Offerings, Dates and Class Summary Links

There are no current offerings for this course.

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