ENVIRONMENTAL ECONOMICS

Paper Code: 
ECO 424 (B)
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

To understand the issues relating to environmental economics

12.00
Unit I: 
Environment, Ecology, and Economy
  • Environmental Economics: Definition & Scope
  • Eco System : meaning, structure : Abiotic and Biotic group
  • Environment : Meaning, Importance and Segments

 ( Lithosphere, Hydrosphere and Biosphere)

  • Development & Environment
  • Economy, Ecology and Environment Interaction: Ayres-Kneese’s Material Balance Model
12.00
Unit II: 
Market Failure, Externalities and Public Goods
  • Market Failure: Meaning
  • Externalities: Meaning, External economies and diseconomies,
  • Pigovian Analysis of Externalities : Pigovian Taxes and Subsidies
  • Public Goods: Meaning and Characteristics
  • Public Goods and Pareto Efficiency
12.00
Unit III: 
Sustainable Development
  • Sustainable Development –Meaning, Rules (Safe Minimum Standards, Hartwick Approach, London School Approach, and Daly’s Operational Principles).
  • Indicators of Sustainable Development (Pressure Indicators, Impact Indicators and Sustainable Indicators).
  • Sustainable Industrialization : Meaning, Green Marketing- Green Design, Green packaging, Eco- Labeling, Eco Efficiency
12.00
Unit IV: 
Measurement of Environmental Values
  • Need for Environmental Valuation
  • Total Economic Value : Use Value and Non Use Value
  • Methods of Environmental Valuation ; Expressed Preference Methods, Contingent valuation Method, revealed preference methods- Travel cost method, hedonic Price method, Preventive Expenditure Method, Cost  Based methods : Opportunity Cost Method, Relocation Cost Method, Replacement Cost method
  • Difficulties in Measuring Environmental Values
  • Green Accounting: Meaning, Need, Objectives and Problems
12.00
Unit V: 
Economics of Natural Resources Management
  • Role of Natural Resources in Economic Development
  • Theories of Natural Resources : The Hotelling’s Extraction Cost Rule, The Tragedy of the Commons
  • Forest Resources : Role of Forests in Economic Development, Forest Management, Social forestry- Rationale and Benefits
  • Conservation and Management of Natural Resources

 

 

NOTE: Non-mathematical treatment of the subject is recommended.

Essential Readings: 

1.Eugine. T., Environmental economics, Vrinda Publications (P) Ltd, 2004.

2.Bhattacharya, Rabindra N., (Edited): Environmental Economics- An Indian Perspective, Oxford University Press, 2001.

3.Dingra I.C., The Indian Economy: Environment and Policy.

4. Our Common Future, Oxford University Press, 1987.

5. Prasad, Lallan and Aggarwal Rashmi: Economics of Environment and National Resource Management.

6. Hemple, Lamont, C. 1998, Environmental Economics: The Global Challenge, First East West Press, and Edinburgh.

7. Welford, J.: Environmental Management System.

8. Markandya and Richardson:Environmental Economics, 1992.

9. Todaro, M.P. and Stephen, C. Smith 2004, Economic Development, Person Education.

10. H.L. Ahuja, Advanced Micro Economic Theory, S. Chand & Company, New Delhi

Academic Session: 
2015-16
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