UCL Department of Economics


ECON0077 - Environmental Economics: Principles and Policy


Course outline

This course aims to provide students with an overview of economic theory and empirical methods relevant to the context, design and implementation of environmental policy, and to develop the skills needed to work effectively as an economist in this field of policy. Topics covered will include core economic theory and methods including the efficient regulation of externalities, the economics of emissions trading and other instruments, and techniques for cost-benefit analysis of environmental policy measures. Case studies will include air pollution control, waste management and climate change policy.


By the end of the course, students will have:

1. Developed a critical understanding of economic theory relevant to the context, design and implementation of environmental policy, at a level which enables them to contribute key relevant economic insights to a discussion of environmental policy options.

2. Developed an understanding of the contribution that applied economic research can make to the design and evaluation of environmental policy, an awareness of the strengths and limitations of available empirical approaches, and the ability to explain the meaning and significance for practical policy of the findings of applied research studies.

3. Knowledge of some of the main issues in current environmental policy, and an awareness of how economic theory and empirical research have been used in the analysis of policy options and the evaluation of policy outcomes.

4. Demonstrated their ability to use economic reasoning to structure an analysis and assessment of a specific issue in environmental policy, and to deploy relevant economic theory and empirical evidence in a sustained, systematic and persuasive analysis of policy options.


Environmental Economics

This module information video is presented by Professor Stephen Smith

Taught by:Stephen Smith
Assessment:2 hours of lectures per week and 4 problem classes with written assignments. The course will be assessed by coursework in Term 3.
Suitable for:Graduate students
Prerequisites:Permission of the Department of Economics
Moodle page:ECON0077