This course will allow students to develop an understanding of theory behind environmental economics and to apply this theory to real-world economic situations. Particular attention will be paid to situations where the free market fails to provide its participants with optimal outcomes. The theory will include market failure, externalities, common property resources and public goods, and intertemporal equity and discounting. Topics will include the use of market-based versus command-and-control policy instruments, property rights regimes, renewable and non-renewable resource management, measurement of environmental benefits and costs, benefit-cost analysis, and international environmental treaties such as the Kyoto Protocol. Format: lecture/discussion. Requirements: exams, written problem sets and research papers.

Prerequisites: Economics 110, or 101. Enrollment limit: 40 (expected: 25). Preference given to Economics majors.

Hour: MATHESON