The course will cover the following main topics:
1) Introduction to the relationship between the economy and the environment
2) Need for environmental policy making (market failures including external effects and public goods, internalisation of externalities)
3) Design of environmental policy instruments (review of policy instruments including legal instruments, taxes/subsidies, tradable permits, moral suasion and others; policy criteria and instrument selection)
5) Environmental valuation methods (basic concepts & theory, revealed and stated preferences approaches, application to economics of valuing ecosystem services and biodiversity)
6) Policy instruments in practice (applied examples from road transportation, land-use and biodiversity conservation, and energy)