The natural environment is invariably affected by production and consumption in our modern economy. In particular, environmental outcomes are important in the presence of market failures (externalities and public goods). This unit focuses on developing a student's detailed understanding of the economic techniques used by policymakers to address environmental issues. These techniques include: Pigovian taxes and subsidies; regulation with asymmetric information; marketable permits; pricing contributions for public goods; optimal damages; and the allocation of property-rights and market failures.
1x2hr lecture/week, 1x1hr tutorial/week
1x1500wd Essay (25%), 1hr Mid-semester test (25%), 1x2hr Final exam (50%)
AREC2003 or RSEC2031 or ECOS2001 or ECOS2901