[Economics] Environmental Economics


General information

Course name Environmental Economics
Course type  
Course code VWL-EnRe-EnEc
Course coordinator Prof. Dr. Martin Quaas
Faculty Faculty of Mathematics and Natural Sciences
Examination office  
Short summary Students should learn why environmental problems can be economic problems. They should be able to identify environmental economic problems caused by non-compensated externalities and insufficiently defined property rights. The most important environmental policy instruments and their effects should be familiar. Students should know about their advantages and disadvantages. Moreover, students should know some special aspects concerning environmental policy, e.g. environmental policy in open economies, incentives for innovation and problems on ecological tax reforms. Furthermore, students should be able to apply basic techniques to evaluate environmental damages.

Information about study level

Study level Master
Also possible for  

Information about credit points, evaluation and frequency

Evaluation Written examination
Frequency Winter semester

Information about teaching language

Teaching language English
Minimum language requirement B2
Further information on the teaching language  

Information about requirements

Recommended requirements Basic knowledge in economics, innovation studies, economic geography and sustainability.

Information about course content, reading list and additional information

Course Content 1.         Introduction: Environmental problems from an economic viewpoint, environmental economics versus ecological economics, 2.         Stylized facts: Time series for different pollutants und ecological damages, environmental policy Approaches in different countries 3.         A simple model in Environmental Economics: Description of the model, efficiency conditions, environmental policy instruments 4.         Imperfect Information: Effects of environmental policy instruments if the level of social damage is unknown and if the abatement costs are unknown; mechanisms to solve the information problem 5.         Output Markets: Extension of the model; efficiency conditions; environmental policy instruments; relative standards; market entry and exit; abatement costs 6.         Imperfect Competition: Effects of environmental policy instruments under imperfect competition: monopolies; oligopolies 7.         Environmental Economics in Open Economies: Cooperative approaches; non-cooperative approaches; environmental policy as trade tolicy 8.         Ecological Tax Reform: Weak, strong and double dividend, conditions for existence (non- existence) of double dividends 9.         Economic incentives for innovation: Incentives for technology adoption; incentives for R&D 10.       Valuation of Environmental Damages: Hedonic pricing; method on household production functions (e.g. traveling costs method); stated preferences (e.g. contingent valuation).
Reading list  
Additional information