.-Environmental Economics

Prof Gabriele Canali

COURSE AIMS

The course aim is to teach students the essential knowledge with reference to economic tools for dealing with the most important topics of environmental economics: optimal use of renewable and non-renewable resources, the economics of pollution, the economic evaluation of environmental goods, relationships between the agri-food chain and the environment, sustainability.

COURSE CONTENT

ECTS
Economic Development, economic theories and sustainability
The specific aspects of environmental economics.
Economic theories and relationship between the economic system and the environment.
The circular economic system and sustainability. / 0.5
Economics of natural resources
Renewable natural resources (RNR).
The optimal use of RNR in different conditions (profit maximization, free access, common property, presence of externalities like the value of biodiversity).
The extinction problem: possible causes and implications in terms of policies and economic tools. / 1.0
Non-renewable natural resources (NNR)
The optimal use of non-renewable resources and its weaknesses.
The effect of most important variables on price evolution of NNR
Measurement and scarcity of NNR: neo-Malthusianand Ricardian approaches. / 1.0
Economics of pollution
Definition of the optimal level of pollution.
How to reach the optimal level of pollution with:
-the Coase approach;
-the use of environmental standards and fines;
-the introduction of Pigouvian taxes;
-the use of subsidies.
Comparison between standards and pigouvian taxes with uncertainty. / 1.0
The economic evaluation of environmental goods
The total economic value and its components.
Indirect and direct methods: prosand cons
The contingent valuation; some examples.
The travel cost method (individual and zonal); some examples
The hedonic price method; some examples / 1.0
Agriculture, environment and sustainability
The evolution of the Common Agricultural Policy (CAP) and its effects on relationships between the agricultural sector and the environment.
Rural development policies and agro-environmental policies. / 0.5
Sustainability in the agri-food sector
Environmental certifications and sustainability. / 0.5
Environmental Impact Assessment (EIA) and Integrated Environmental Authorization (IEA)
Evolution of European and national legislation on EIA and IEA.
Main methodologies for EIA (introductory). / 0.5

REFERENCE

D.W. Pearce-R.K. Turner,Economiadellerisorsenaturali e dell’ambiente, Il Mulino, Bologna, 1991.

Other readings will be suggested during lectures.

TEACHING METHOD

The course will be based upon traditional lectures and in few cases, some seminars involving professionals or experts of the sector, can be organized according to students interests and opportunities.

ASSESSMENT METHOD

The final grade will be based on the results of a written mid-term and a final oral exam. Students may also decide to develop a small research under the professors’s guidance; the final output will be accounted for the final grade.

TIME AND PLACE FOR STUDENT

Professor Gabriele Canali is available for meeting students after classes in his office at the Department ofAgri-food Economics (Dipartimento di Economia agro-alimentare) and by appointment.