Course description
The course gives a systematic analysis of environmental issues using economic theory. It is particularly microeconomic theory that is used. The course has five main parts:
- The first part gives an introduction to the theory of externalities.
- The second part gives an analysis of environmental policy instruments, with particular emphasis on situations with uncertainty and / or asymmetric information.
- The third part treats valuation of environmental goods.
- The fourth part treats international aspects, both for the case in which the environmental problem itself is international and for the case in which there may be other reasons for international co-ordination of environmental problems.
- Finally the fifth part treats two specific international environmental problems, namely global warming and acid rain.
Reading list
- General background:
C.D. Kolstad: Environmental Economics. Oxford University Press, 2000. Chapters 1-5.
- Environmental policy:
C.D. Kolstad: Environmental Economics. Oxford University Press, 2000. Chapters 6-11.
M. Hoel (1997): "Emission taxes versus other environmental policies", Scandinavian Journal of Economics 100 (1), 79-104, except Section V, 1998. K, A.
- Valuation of environmental goods:
C.D. Kolstad: Environmental Economics. Oxford University Press, 2000. Chapters 15-18.
- Dynamic issues in environmental economics:
C.D. Kolstad: Environmental Economics. Oxford University Press, 2000. Chapter 14.
R. Perman et al.: Natural Resource and Environmental Economics, chapter 16 (pp. 537-554), 3rd edition, 2003. K
- International issues:
C.D. Kolstad: Environmental Economics. Oxford University Press, 2000. Chapter 13.
Michael Hoel: "Transboundary Environmental Problems", in J.C.J.M. van der Bergh (ed.): Handbook of Environmental and Resource Economics, Edward Elgar 1999. K, A.
- Specific environmental problems:
Global warming
NOU 2000:1 (Summary in English): A quota System for Greenhouse Gases: A policy instrument for fulfilling Norway's emission reduction commitments under the Kyoto Protocol. Lastes ned fra nett: http://odin.dep.no/md/engelsk/publ/rapporter/022021-020006/index-dok000-b-n-a.html. A.
Acid rain
F.R. F?rsund: Modelling transboundary air pollution: the RAINS model approach Memorandum from the Department of economics, University of Oslo, no. 37/1999 A.
Articles marked with a K are available in a compendium which is sold in Kopiutsalget, Akademika.
Articles marked with a A are to be considered as additional readings.