Environmental Economics

Paper Code: 
DECO 601B
Credits: 
6
Contact Hours: 
90.00
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, pollution control, climate change and global warming.

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

18.00
Unit II: 
Market Failure, Externalities and Public Goods

·         Market Failure: Meaning,

·         Pareto Optimality and Market Failure,

·         Externalities: Meaning, Positive and Negative Externalities in production and consumption

·         Public Goods: Meaning and Characteristics,

·         Public Goods and Pareto Efficiency

·         Asymmetric information and market failure

18.00
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

18.00
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.

18.00
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: 
2023-24
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