Recommended: First year of Master studies
After completing the course, students understand how to design alternative economic mechanisms so as to overcome the problems of asymmetric information and creating incentives to internalize externalities. They are able to assess the cases to which the conventional trading, auction and other mechanisms fit. They know how to apply these mechanisms for pollution control or promotion of public good in nature, such as biodiversity.
- The course be offered in the form of contact teaching
- Methods of completion: Exercises and tasks for numerical analysis using excel and report and exam
AGERE-001 Introduction to the Master program In Agricultural, environmental and resource economics
AGERE-E01 Environmental Economics I: Theory
|Recommended optional studies
AGERE-E03 Climate and Energy, AGERE-E04 Advanced Natural Resource Economics
The course deepens the theory and analytical skills provided by course AGERE-E01. It focuses first on classical trading models applied both as emissions trading systems and water quality trading systems. The next topic is the auction theory and how it is applied to pollution control. Promotion of public goods is examined in a special auction system, green auctions or bidding systems. Finally, the course focuses on the challenge of nonpoint source pollution for instruments.
|Study materials and literature
Textbook: Baumol & Oates (1988) The theory of environmental policy. Second edition
Textbook: Xepapadeas: Advanced Principles in Environmental Policy
|Activities and teaching methods in support of learning
- Student activities: full set of exercises, numerical analysis of given task and research report on the work
- Final exam
|Assessment practices and criteria
- Performance in exercises and the quality of the research report is taken in account when the grade is given primarily based on the final exam.
|Relations to other study units
Replaces the course 863052 Advanced Environmental Economics 10 cr.
professor Markku Ollikainen
Suitable for exchange students