ECONOMICS OF THE ENVIRONMENT: AN INTRODUCTION

The course aims at providing students with the language and introductory knowledge of economic analysis applied to the environmental context, within a sustainability science perspective (i.e. the integration of the economic, social and environmental dimensions). The course starts from the fundamentals of microeconomics and then it moves to the bases and the main tools of economic analysis, evaluation methods and the principles of management of natural and environmental resources. Emphasis is on the evaluation of the services of the environment and their role for social and economic development.
Case studies and examples will be used to illustrate the main concepts and open issues, with the "Venice case" used as a reference throughout the course. Climate change will be explored in more detail as an example of an international environmental problem. The course will provide students with a working knowledge of the economic approaches for analyzing and managing the environment, as well as with the opportunity to enrich their own economic view about the environment and sustainability.

1. Knowledge and understanding
1.1 Understand the main economic, social and environmental dynamics that contribute to defining possible solutions to environmental problems
1.2 Know and understand the principles and the main approaches to environmental economics (especially in microeconomic terms) and to the economic evaluation of environmental resources.
1.3 Know and understand the limits of the markets and their failures
1.4 Understand the links between development, well-being and exhaustible and renewable resources.
1.5 Understand the role of monetary and non-monetary valuation methods in decision-making processes
2 Ability to apply knowledge and understanding
2.1 Understand and represent the complex nature of environmental problems, drivers and implications in economic, social and territorial terms, providing economic actors and decision makers with conceptual models for analyzing and solving environmental problems
2.2 Analyze the flows and budgets that characterize the relationships between economy and the environment
2.3 Adopt a perspective based upon complex systems and system dynamics to develop cognitive and possibly operational model
2.4 Apply methods of evaluation of non-market goods and services
3 Ability to judge
3.1 Reflect on the relationships between economic activities and the environment with a minimum set of economic analysis methods and tools
3.2 Reflecting on sustainability as a criterion for long-term human development

No prior background in the subject is required. Students from other degrees wishing to take the course are advised to contact the instructor in advance.

Introduction to the course and identification of learning objectives
Humans and the environment
The emblematic case of Venice: human-envirnoment interrelationships
Markets, Prices and Competition
Measuring and Modelling the Economy
Scarcity, Choices and Money
Limits to the Market: the Coase Theorem
Natural Resources
Growth and Natural Resources
A critical view of neoclassical economics and alternative paradigms
Introduction to economic valuation methods
Environmental-economic policy Instruments
Economics of Ecosystem Services

Teaching materials made available by the instructor through the Moodle web site with the following main reference books:
Common, Michael and Sigrid Stagl, 2012. Ecological economics: an introduction. Cambridge University Press.
The Core Team. The Economy. Selected chapters. Freely available at https://www.core-econ.org/the-economy/

The oral exam includes 3-4 questions across the topics of the course, one of them will be aimed at evaluating the student's ability to elaborate an articulated and methodologically sound reasoning on the course contents in a hypothetical case of the real world.

written and oral

Below is a reference grading:
28-30L: excellent mastery of the topics covered in class and ability to select and prioritize information; use of appropriate terminology;
26-27: good knowledge of the topics covered in class and fair ability to organize information and present it orally; familiarity with terminology;
24-25: not always in-depth knowledge of the topics covered in class; correct oral presentation, but with limitations for example in the use of terminology;
22-23: superficial knowledge of the topics covered in class and unclear oral presentation, or lacking in terminology;
18-21: deficient knowledge of the topics covered in class and not completely adequate oral presentation.
Suggestions to obtain medium or high grades:
• Attend and participate in class and timely accomplish possible homeworks
• Study course materials in advance during the attendance
• Study in depth the various topics on recommended texts

The course foresees lecture-style presentations making use of powerpoint slides made available to students through the Moodle site of the course, seminars (given also by external experts), homework and students’ presentations.
The blog functionality provided by the Moodle platform is used for on-line communication between students and the professor.

Course materials (powerpoint slides, homework, forum, etc.) can be found in the Ca' Foscari Moodle web site: http://moodle.unive.it/ . Therefore, students’ registration in Moodle is needed since the start of the class also for those that do not attend the lectures

This subject deals with topics related to the macro-area "Natural capital and environmental quality" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development