Environmental economics is now an indispensable part of the education of anyone dealing with environmental issues. As one of the fastest growing areas of research and study, its influence over environmental policymaking and practice is already widely recognised. For example, it has become commonplace to speak about green taxes, carbon trading mechanisms, environmental valuation and incentive design for sustainable development.

What are the underlying causes of tropical deforestation? How rapidly should we take action to deal with global warming? What is the most efficient way to tackle air pollution? Are consumers willing to pay more for cleaner fuels and technologies? These are some of the questions which environmental economics attempts to address, pointing to the need to link individual choices and patterns of behaviour to the underlying structure of the economy and its institutions. A central insight is that environmental degradation, far from being an incidental consequence of economic activity, is in many ways a central feature of the way production and consumption is currently organised. Economists are uniquely well placed to comment on, and offer analysis of, these linkages. At the same time, economists argue that solutions require systematic changes to the economic incentives which drive human behaviour in these domains, bringing about the shifts in production and consumption that are necessary for sustainable development.

The demand for individuals with a good grounding in environmental economics continues to grow. There are promising career opportunities in government, industry, consultancy and research for people able to apply economic ideas, concepts and methodologies to environmental problem-solving and policymaking. In drawing up this new Option, we have been concerned to offer a course which will educate and inspire individuals interested in a career in these fields. It aims to provide a broad but integrated survey of environmental economics as a field of study and assist students in developing an ability to think about and analyse environmental problems in economically-literate terms. By the conclusion of the course, students will have a sound understanding of the economic and institutional context for environmental policymaking and will be able to apply economic concepts to understanding, and prescribing solutions for, a wide range of environmental problems.

Content

The Option has been designed for students from all backgrounds with an interest in environmental economics and its applications. In terms of structure, it is divided into eleven thematic modules covering basic theory, tools and a range of applications.

Foundations of Environmental Economics and Policy

This module will provide a critical overview of the theory underlying environmental economics and policy. The module will explore the links between economic behaviour and the natural environment and the theory of environmental policy under alternative economic paradigms.

Topics in Environmental Economics and Policy

The module will address specific challenges in the domain of environmental policy design. The module will cover energy, fisheries, climate, biodiversity and agricultural policies. The module will include a field visit to an international environmental economics and policy conference taking place annually in London where students will be able to listen to presentations of research applied on contemporary policy problems.

Research Methods for Environmental Economics and Policy

Students will gain a critical understanding of quantitative and qualitative research methods that are essential instruments in an applied economists toolkit. A group project will give students the opportunity to conduct empirical research and implement, quantitative and qualitative research skills to address interesting policy questions.

An essential feature of the Option, complementing, integrating and applying this lecture material, is small group project work. This is designed to develop a wide range of technical and analytical skills (project evaluation, data analysis, environmental valuation) and also organisational and communication skills (technical writing, oral presentations, team work). Finally, there is a series of specialist talks and seminars running through the term, in which invited speakers working in policymaking, industry and research give presentations on environmental economic and policy issues in the news.

Careers

There are excellent career opportunities for graduates who can combine training in environmental economics, good policy knowledge, proficiency in quantitative and qualitative methods and an ability to develop applications. Graduates from this Option are likely to find employment across a wide field, including environmental consultancy, advisory positions in commercial business and industry and careers as expert advisors in government, international institutions and environmental NGOs.