ECON204

This course explores economic problems associated with environmental issues. The course introduces modeling and analytical tools used in the field. The course first examines the problem of market failure in the presence of externalities and public goods, and considers public policy responses to these market failures, including command-and-control regulations, tax and subsidy incentives, and marketable pollution permits. The course then addresses the methods to measure the costs and benefits of environmental improvements and how these types of analysis are used in public policy decisions. These decisions are analyzed in the context of problems such as air pollution, ozone depletion and global warming, threats to biodiversity, and development. Prerequisite: ECON 101.