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

Final exam during exam session, mainly small problems of the types seen in class.

Supervision

Office hours No
Assistants No
Forum Yes

Resources

Notes/Handbook

Slides will be made available on Moodle

Moodle Link

Videos

In the programs

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