• Offered by Research School of Economics
  • ANU College ANU College of Business and Economics
  • Course subject Economics
  • Areas of interest Economics
  • Academic career Undergraduate
  • Course convener
    • Prof Ralf Steinhauser
  • Mode of delivery In Person
  • Offered in Second Semester 2019
    See Future Offerings

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

  1. Understand 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

  • Tutorial presentations and participation: 10% 
  • Midterm exam: 30% (redeemable)
  • Final exam: 60%
 

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Workload

Two lectures per week plus tutorials throughout the semester.
 

Requisite and Incompatibility

To enrol in this course you must have successfully completed ECON2101 or ECON2111. You are not able to enrol in this course if you have previously completed ECON2128.

Prescribed Texts

N.O. Keohane and S.M. Olmstead, Markets and the Environment, Island Press, 2007
 

Preliminary Reading

William D. Nordhaus, The Climate Casino: Risk, Uncertainty, and Economics for a Warming World, Yale University Press, 2013

Assumed Knowledge

You should possess basic mathematical skills, such as being able to solve algebraic equations, graph functions, and take derivatives and partial derivatives. Additional formal techniques for constructing and analysing dynamic models will be developed as part of the course.The book by William Nordhaus listed below as an additional reference provides background and motivation for many of the issues that will be discussed during the semester, and would thus be useful preliminary reading.
 
 

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:
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
Domestic fee paying students
Year Fee
2019 $4140
International fee paying students
Year Fee
2019 $5460
Note: Please note that fee information is for current year only.

Offerings and Dates

The list of offerings for future years is indicative only

Second Semester

Class number Class start date Last day to enrol Census date Class end date Mode Of Delivery
9290 22 Jul 2019 29 Jul 2019 31 Aug 2019 25 Oct 2019 In Person

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