The course is connected to the following study programs
Recommended previous knowledge
SE-213-1 Microeconomics or equivalent.
Learning outcomes
Upon successful completion of this course the student should:
• have in-depth knowledge about common environmental market failures and the economic policy instruments available for correcting them.
• be able to explain the concept of externalities and how it leads to differences between private and socially optimal environmental market outcomes.
• understand the role of economic incentives in addressing environmental issues like climate change and the energy transformation.
• have basic knowledge about the framework for comparing benefits and costs in project appraisal, including the impacts on the environment (social benefit-cost analysis).
• have basic knowledge about common methods for the valuation of goods and services provided by nature (ecosystem services).
• have basic knowledge about economic models for optimal use of both nonrenewable and renewable natural resources.
Contents
Is there an optimal level of pollution? Why is it hard to reach international climate targets? How can we facilitate a successful transfer from fossil energy to renewable energy? How can we put a monetary value on the goods and services provided by nature? How should common-pool resources be managed? These are some of the questions we will address in this course, by means of economic theory. We will investigate common environmental market failures and economic policy instruments available for correcting them, in the context of air pollution and climate change. Further, we will introduce the framework of social benefitcost analysis (SBCA) and present common methods for putting monetary values on benefits provided by nature (ecosystem services). Finally, we will look at the economic conditions for optimal use of both non-renewable resources (oil, gas, and minerals) and renewable resources (fishery and forestry).
Teaching and learning methods
Lectures and seminars. The total workload is about 200 hours.
Examination requirements
Approved mandatory mid-semester assignment.
Examinations
4-hour written examination. Assessment expression: letter grade, A-F.
Student evaluation
The person responsible for the course decides, in cooperation with student representative, the form of student evaluation and whether the course is to have a midway or end of course evaluation in accordance with the quality system for education, chapter 4.1.
Offered as a free-standing course
Yes, if there are places available.
Admission Requirement if given as a free-standing course
SE-213 Microeconomics or equivalent is required for enrollment.
Admission for external candidates
No.
Last updated from FS (Felles studentsystem)
Oct. 15, 2026 10:40:25 AM