Environmental Economics

Paper Code: 
ECO 614
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

1. To explain the various methods of environmental valuation.

2. To acquaint the students with the meaning, rules and indicators of sustainable development.

3. To describe the issues relating to environmental protection and pollution control and also climate change and global warming

12.00
Unit I: 
Environment, Economy & Valuation of environment
  • Environmental Economics: Definition & Scope
  • Environment- Economy Interaction, Development & Environment, Environmental Kuznets Curve
  • Need for environmental valuation, Use Value and Non Use Value
  • Methods of environmental valuation : Contingent Valuation method, Hedonic Pricing Approach, Travel Cost Method
  • Difficulties in measuring  environmental value
12.00
Unit II: 
Market Failure, Externalities and Public Good
  •          Market Failure: Meaning, Pareto Optimality and Market Failure
  •          Externalities: Meaning, Positive Externalities and Negative Externalities
  •          Public Goods: Meaning and Characteristics
  •          Public Goods and Pareto Efficiency
12.00
Unit III: 
Sustainable Development
  • Sustainable Development –Meaning, Rules -Hartwick Approach, London School Approach, Safe Minimum Approach,, and Daly’s Operational Principles.
  • Indicators of Sustainable Development -Pressure Indicators, Impact Indicators and Sustainable Indicators.
  •  Weak Sustainability and Strong Sustainability
12.00
Unit IV: 
Conservation of Resources & Environment Protection
  •   Conservation of Resources- Preservation & Conservation,
  •    Methods of Conservation-Material Conservation, Product Life Extension, Recycling, Pollution Tax, Waste Reduction
  •     Policy Instruments for Environmental Protection: The Polluter Pays Principle (PPP), The User Pays Principle (UPP) & The Precautionary Principle (PP)
  •      Policy Measures to Control Environmental Pollution: Command and Control Approach,  Pigouvian Tax, Environmental Subsidy, Tradable Permits, Deposit Refund System, Participatory and Voluntary Agreements
  •      Property Rights  &Coase’s  Theorem, Bargain Solution
12.00
Unit V: 
Climate Change & Global Warming
  •         Effects of climate change
  •        Impact of Green House Effect, Acid Rain, Ozone Layer Depletion
  •         Global Level Efforts : Montreal Protocol, Convention on Climate Change (1992 & 1995), GEF, Kyoto Protocol (1997)
  •         International Policy Instruments to Tackle  Environmental Externalities : International Carbon Tax, Tradable Quotas & Tradable Pollution Permits
Essential Readings: 

Callan, S. J., and Thomas, J. M. ,Environmental Economics & Management:   Theory, Policy, and Applications, South-Western College Publishing, 6th Edition, 2012.

References: 

1.      Eugine. T., Environmental economics, Vrinda Publications (P) Ltd., 1st Edition, 2005.

2.      Bhattacharya, R. N., Environmental Economics- An Indian Perspective,  Oxford University Press, 2002.

Academic Session: 
2022-23
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