Environmental Economics

Paper Code: 
ECO 614
Credits: 
4
Contact Hours: 
60.00
Objective: 

To understand the issues relating to environmental protection and pollution control.

9.00
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
9.00
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
9.00
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
9.00
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

 

 

9.00
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: 

1. Scott J. Callan and Janet M. Thomas, Environmental Economics & Management: Theory, Policy, and Applications, South-Western College Publishing; 6th edition, 2012.
2. Eugine. T., Environmental economics, Vrinda Publications (P) Ltd, 2004.
3. Bhattacharya, Rabindra N., (Edited): Environmental Economics- An Indian Perspective, Oxford University Press, 2001.
4. Prasad, Lallan and Aggarwal Rashmi: Economics of Environment and National Resource Management.
5. Hemple, Lamont, C. 1998, Environmental Economics: The Global Challenge, First East West Press, and Edinburgh.

Academic Session: 
2018-19
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