Environmental Economics, Policy and Governance

Assess the utility and challenges of environmental economics, and appreciate the importance of environmental policy and governance for addressing environmental problems in India and globally.

This course will introduce students to different tools of economic analysis to examine environmental problems and their solutions. Students will learn relevant economic concepts and tools such as market efficiency, externalities, public goods, valuation, and cost-benefit analysis to discuss the causes of environmental problems. They will then learn about the applications of these concepts in designing and evaluating environmental policies and their governance. Based on in-class exercises and discussions, students will examine a variety of policy options, including command and control policies for pollution, taxes and subsidies for clean energy development, cap-and-trade programmes for greenhouse gases, and multilateral climate change negotiations. There will be a particular emphasis on examining the distributional impacts of these policies to highlight the inequalities and justice concerns they may entail. By the end of this course, students will be able to describe and assess the role as well as limitations of economic analysis for addressing environmental problems.