Environmental economics

ENV-471 / 4 credits

Teacher: Thalmann Philippe

Language: English

Summary

Introduction to economic analysis applied to environmental issues: all the necessary basic concepts, including cost-benefit analysis, for environmental policy making and its instruments (examples: climate, waste, mobility). Introduction to financial calculation applied to project evaluation.

Content

Introduction to economic analysis: Actors, supply, demand / Markets and prices / Price and quantity regulation

Introduction to environmental policy: Externalities / Cost-benefit analysis, policy objectives

Environmental policy: Abatement costs / Instruments for environmental policy / Comparison of instruments

Introduction to financial calculation: Discounting / Net present value

Project evaluation: Investment, costs (Capex, Opex) / Amortization and depreciation / Financial comparison of projects / Multicriteria choice

Concepts are illustrated with examples from Swiss climate policy, waste management, energy retrofitting of buildings, vehicle choice, etc.

Keywords

environmental economics, environmental policy, cost-benefit analysis, project evaluation, financial calculus

Learning Prerequisites

Important concepts to start the course

Basic algebra and using a spreadsheet such as Excel.

Learning Outcomes

By the end of the course, the student must be able to:

  • Explain price formation
  • Compare environmental policy instruments
  • Argue for an environmental policy
  • Compute the profitability of engineering projects
  • Solve small mathematical problems

Transversal skills

  • Take account of the social and human dimensions of the engineering profession.
  • Take responsibility for environmental impacts of her/ his actions and decisions.
  • Demonstrate the capacity for critical thinking

Teaching methods

Lectures in the first two periods, exercises in the third.

Expected student activities

Participate actively in class.

Assessment methods

Intermediate exam (1/2 of grade) and final exam (1/2 of grade).

Supervision

Office hours No
Assistants No
Forum Yes

Resources

Notes/Handbook

Slides will be made available on a Moodle page

Moodle Link

In the programs

  • Semester: Spring
  • Exam form: During the semester (summer session)
  • Subject examined: Environmental economics
  • Lecture: 2 Hour(s) per week x 14 weeks
  • Exercises: 1 Hour(s) per week x 14 weeks
  • Type: optional
  • Semester: Spring
  • Exam form: During the semester (summer session)
  • Subject examined: Environmental economics
  • Lecture: 2 Hour(s) per week x 14 weeks
  • Exercises: 1 Hour(s) per week x 14 weeks
  • Type: optional
  • Semester: Spring
  • Exam form: During the semester (summer session)
  • Subject examined: Environmental economics
  • Lecture: 2 Hour(s) per week x 14 weeks
  • Exercises: 1 Hour(s) per week x 14 weeks
  • Type: optional

Reference week

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