Environmental Economics from Coursera

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Syllabus

Introduction to Environmental Economics

Pollution externalities are widespread in modern industrial economies. In microeconomics, an externality is a key defect of a market and creates the rationale for government intervention in the economy. This first module provides an overview of the field of Environmental Economics and reviews the essential microeconomic principles for the course.

Economic Valuation of Nonmarket Environmental Goods and Services

Concepts and methods are needed for quantifying the economic value of goods and services not transacted in markets. “Nature’s services” are a prime example of these. These methods, and their application, are an important sub-field of environmental economics, with relevance to public policy and government programs.

The Economics of Environmental Regulation

Environmental regulation typically involves a public policy that requires companies to reduce emissions of one or more pollutants. Market-based policy instruments are defined by providing financial incentives for companies to reduce emissions, instead of prescribing particular reductions. They have the virtue of cost-effectiveness, that is, of achieving least-cost compliance with the regulation. This module uses the example of carbon dioxide (CO2) emissions as the regulated pollutant.

Time Discounting: Intertemporal Decision-making and the Discount Rate

The economic benefits and/or costs of a prospective policy or program can occur at different times in the future. Discounting is an approach for translating future dollar values into a consistent metric, present-value dollars. Discounting plays an important role in quantifying the Social Cost of Carbon – a key concept in the economics of climate policy. The material in this module builds a bridge to the next module on benefit-cost analysis.

Benefit-Cost Analysis: A Framework for Evaluating Public Policies and Programs

Benefit-cost analysis (abbreviated as BCA) is the standard economic framework for evaluating a public policy or government program. It involves enumerating the various categories of benefits and costs of a policy and, where possible, quantitatively estimating those benefits and costs. An example is provided of the BCA conducted for the first major climate policy in the United States: greenhouse gas emissions standards for automobiles, which was finalized in 2012.

Global Energy Transition: Fossil Fuel to Renewable Energy Resources

Transitioning from fossil fuel to renewable energy resources is a critical issue of global sustainability. This transition is inherently an intertemporal problem: the global economy depletes the physical stock of fossil fuel over time before transitioning to renewable resources such as solar and wind. We develop the conceptual framework used in economics to understand the problem. An empirical application of the framework demonstrates the key economic logic: the economy transitions to renewable energy when renewables are cost-competitive with fossil fuel.

Global Climate Policy: A Carbon Budget as an Expression of Climate Policy

The amount of carbon dioxide in Earth’s atmosphere is a second resource stock (in reference to Module 6’s stock of fossil fuel). The carbon budget is a common way to express this stock: beginning now, how much carbon dioxide can be emitted into the atmosphere before a particular climate policy target is reached? We build on the conceptual framework of Module 6 to consider a carbon budget as an expression of global climate policy. We then consider a benefit-cost analytic approach to assessing climate policy options. We understand both elements of, and results from, the analysis.

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Know what's good

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Provides training in the principles, conceptual frameworks, and applications of environmental economics, which is useful for professionals in sustainability and policy roles

Explores key concepts of the sustainability economy, including market failures and externalities, which are fundamental to understanding environmental issues from an economic perspective

Teaches how to use tools like benefit-cost analysis and environmental policy instruments, which are essential for making strategic decisions related to environmental and sustainability initiatives

Examines the economic valuation of nonmarket environmental goods and services, which is a specialized area within environmental economics with practical applications in public policy

Analyzes specific policy instruments like CO2 cap-and-trade programs, which are relevant for professionals involved in designing and implementing climate policies

Belongs to a series dedicated to shaping sustainable practices and leadership, which may indicate a comprehensive and detailed approach to the subject matter

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Environmental Economics with these activities:

Review Microeconomic Principles

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Reinforce your understanding of fundamental microeconomic concepts, which are essential for grasping the principles of environmental economics.

Browse courses on Microeconomics

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Review key concepts like supply and demand, market equilibrium, and elasticity.
Practice solving microeconomic problems related to market failures and externalities.
Summarize the main points and identify areas where you need further clarification.

Volunteer with a Local Environmental Organization

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Gain practical experience and contribute to environmental sustainability by volunteering with a local organization.

Browse courses on Environmental Conservation

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Research local environmental organizations and identify one that aligns with your interests.
Contact the organization and inquire about volunteer opportunities.
Participate in volunteer activities, such as tree planting or community cleanups.
Reflect on your experience and how it relates to the concepts learned in the course.

Review 'Environmental Economics and Policy' by Tom Tietenberg and Lynne Lewis

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Gain a deeper understanding of environmental economics principles and policy applications through a widely respected textbook.

View Natural Resource Economics: The Essentials on Amazon

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Read the chapters relevant to the course syllabus, focusing on externalities and policy instruments.
Work through the example problems and case studies provided in the book.
Compare and contrast the book's explanations with the course lectures and readings.

Four other activities

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Create a Data Visualization of Global CO2 Emissions

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Enhance your understanding of global CO2 emissions trends by creating a compelling data visualization using publicly available data.

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Gather data on global CO2 emissions from reputable sources like the World Bank or the EPA.
Choose a suitable data visualization tool, such as Tableau or Python's Matplotlib.
Create a visualization that effectively communicates the trends and patterns in the data.
Write a brief explanation of the visualization and its key takeaways.

Create a Presentation on Carbon Pricing Mechanisms

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Solidify your understanding of carbon pricing by researching and presenting on different mechanisms like carbon taxes and cap-and-trade systems.

Browse courses on Carbon Pricing

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Research different carbon pricing mechanisms, including carbon taxes and cap-and-trade systems.
Analyze the advantages and disadvantages of each mechanism in different contexts.
Prepare a presentation summarizing your findings, including real-world examples.
Present your findings to a study group or online forum for feedback.

Benefit-Cost Analysis of a Local Environmental Project

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Apply benefit-cost analysis to a real-world environmental project in your local community to understand the practical implications of this framework.

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Identify a local environmental project, such as a park restoration or a renewable energy initiative.
Enumerate the potential benefits and costs of the project, both tangible and intangible.
Quantify the benefits and costs using appropriate economic valuation techniques.
Calculate the net present value of the project and assess its economic feasibility.
Write a report summarizing your findings and recommendations.

Review 'A Climate Policy Revolution' by Roland Kupers and Steve Howard

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Gain insights into innovative climate policy approaches and real-world examples to broaden your understanding of the field.

View Putting Knowledge to Work on Amazon

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Read the book, focusing on the policy recommendations and case studies.
Compare the book's perspectives with the course's theoretical frameworks.
Reflect on how the book's insights can inform your own thinking about climate policy.

Career center

Learners who complete Environmental Economics will develop knowledge and skills that may be useful to these careers:

Environmental Economist

An environmental economist applies economic principles and tools to analyze environmental issues and develop solutions. This role involves conducting research, developing economic models, and advising policymakers on environmental regulations. This course helps build a foundation for working as an environmental economist by teaching the basic principles and frameworks of the field. The course gives the student the tools needed for analyzing topics such as pollution externalities, nonmarket environmental goods valuation, and the design of environmental policy instruments. The course also helps in understanding benefit-cost analysis for climate policies.

See salaries and explore the career path for Environmental Economist

Sustainability Analyst

A sustainability analyst uses their understanding of environmental and economic principles to help organizations implement sustainable practices. This role involves assessing environmental impacts, developing sustainability strategies, and monitoring the effectiveness of implemented policies. This course in environmental economics helps to build a strong foundation in the economic concepts underlying sustainability through discussion of topics such as market failures and externalities. Analyzing climate policy and energy policy is a focus of this course which makes it relevant to a sustainability analyst. The time discounting and benefit-cost analysis techniques covered provide practical tools for making informed decisions in this role. With the knowledge gained, a sustainability analyst is well-equipped to contribute to an organization's sustainability goals.

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Energy Analyst

An energy analyst examines energy markets, trends, and policies to help organizations make informed decisions about energy consumption and investments. This role involves analyzing energy data, assessing the impact of energy policies, and developing strategies for energy efficiency and renewable energy adoption. The course can be directly beneficial to an energy analyst because it covers the economic aspects of the global energy transition, focusing on renewable energy sources, the role of carbon budgets, and the economic logic of transitioning to renewables. This foundation builds an understanding of the cost-competitiveness of renewables, as well as how to analyze energy policy.

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Climate Change Analyst

A climate change analyst researches and analyzes data related to climate change to inform policy decisions and help organizations develop adaptation strategies. This work involves assessing climate risks, projecting future climate scenarios, and evaluating mitigation options. This course, with its focus on climate policy and global energy transition, may be particularly helpful to a climate change analyst. Specific course material on CO2 cap-and-trade programs, the economics of renewable energy, and the role of a carbon budget in climate policy provides the tools necessary for analyzing and addressing climate change. The course's discussion of benefit-cost analysis also improves the decision-making process.

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Carbon Market Analyst

A carbon market analyst monitors and analyzes carbon trading markets to provide insights on market trends, pricing, and potential risks. This role involves assessing the impact of carbon policies, developing strategies for carbon offset, and staying up-to-date on regulatory changes. This course may be particularly helpful to a carbon market analyst by exploring of market-based policy instruments like CO2 cap-and-trade programs. The course material on the economics of environmental regulation and discussion of carbon budgets in global climate policy make this course a relevant introduction to the field. This improves assessment of carbon markets and the policy environment.

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Policy Analyst

A policy analyst researches and evaluates public policies to assess their effectiveness and recommend improvements. This role requires an understanding of the economic impacts of policies and the ability to analyze data and communicate findings to stakeholders and decision makers. Through this course, a policy analyst can benefit from learning about the economic principles behind environmental policies. By exploring concepts such as externalities, benefit-cost analysis, and policy instruments, a policy analyst can better assess the viability of environmental regulations. The course helps to identify effective and efficient solutions for climate and energy policy.

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Environmental Consultant

An environmental consultant advises clients on environmental issues and helps them implement sustainable practices and policies. This role involves conducting environmental assessments, developing strategies for pollution control, and ensuring compliance with environmental regulations. This course in environmental economics may be useful because it provides an approach to assessing environmental challenges and solutions. The course's content on the economic valuation of nonmarket environmental goods and services, environmental regulation, and the economics of market-based policy instruments are directly applicable to the work of an environmental consultant. By understanding the economic aspects of environmental issues, an environmental consultant can develop effective and economically feasible solutions.

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Corporate Social Responsibility Manager

A corporate social responsibility manager develops and implements strategies that align business practices with social and environmental objectives. This role involves creating sustainability programs, engaging stakeholders, and tracking the company's environmental performance. This course provides valuable concepts and tools for a corporate social responsibility manager who wants to integrate economic thinking into their organization's sustainability efforts. The course's content on market failures, externalities, and benefit-cost analysis provides the necessary underpinnings for sustainability strategies. Specific topics on energy and climate also help address the company's environmental impact.

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Public Policy Consultant

A public policy consultant provides expert advice to government agencies, non-profits, and other organizations on how to design and implement effective policies. This role involves conducting research, analyzing policy options, and preparing policy recommendations. This course can be particularly relevant to a public policy consultant because it covers the economic principles behind environmental policies. The concepts of externalities, benefit-cost analysis, and market based policy instruments are explored in the course, and these are relevant to public policy. The consultant gains tools to understand how to design effective and economically sound environmental policies.

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Renewable Energy Project Manager

A renewable energy project manager oversees the planning, development, and implementation of renewable energy projects. This role requires a strong understanding of renewable energy technologies, project management principles, and economic evaluations. This course would provide useful tools because it explores the economic aspects of transitioning to renewables, including the cost competitiveness of these energy sources. Concepts like time discounting also help a renewable energy project manager to make strategic decisions. The course allows a renewable energy project manager to more effectively evaluate project feasibility and maximize positive environmental impacts.

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Impact Analyst

An impact analyst evaluates the social, environmental, and economic effects of policies, programs, and projects. This work includes conducting impact assessments, analyzing data, and making recommendations to improve outcomes. This course provides a conceptual basis for the economic aspects of environmental and sustainability issues. Concepts covered in this course such as economic valuation, benefit-cost analysis, and intertemporal decision-making help an impact analyst to assess the effects of various policies and programs. An understanding of market failures and externalities, and how to address them, makes the role more effective.

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Environmental Advocate

An environmental advocate works to promote environmental protection and sustainability through education, lobbying, and public awareness campaigns. This role involves researching environmental issues, building support for policy changes, and engaging with communities to foster action. This course provides a foundational undertanding of concepts in environmental economics such as externalities, market failures, and policy instruments. While not directly an advocacy course, this course may help an environmental advocate make their arguments using economic policy arguments. This course provides the economic context for the work.

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Urban Planner

An urban planner develops plans for land use and community development while taking into account environmental, social, and economic factors. This role includes zoning regulations, creating sustainable infrastructure, and community engagement to ensure long-term sustainability. This course may be useful to an urban planner who desires to incorporate environmental economics into their work. An urban planner will learn to integrate economic concepts of sustainability and market failures, with a focus on CO2 emissions. Specific topics covered in the course, like benefit-cost analysis of environmental regulations, also help make decisions on development projects.

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Data Analyst

A data analyst collects, processes, and analyzes data to identify trends, patterns, and insights that can inform business or policy decisions. This role involves using statistical tools and software to generate reports and visualizations from data. This course might be useful to a data analyst by building knowledge of environmental economics; it allows the analyst to better understand data related to this field. The course covers key concepts like externalities, time-discounting, and benefit-cost analysis, which can provide context when working with environmental data. The course can be especially helpful if the data analyst hopes to specialize in environmental fields.

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Financial Analyst

A financial analyst uses financial data to assess the performance of companies or projects and to provide investment recommendations. This role involves analyzing financial statements, creating financial models, and understanding market trends. This course may be useful to a financial analyst who wants to learn about the intersection of finance and sustainability. By exploring the economic aspects of environmental issues, a financial analyst can better understand the financial risks and opportunities associated with sustainability. The time discounting and benefit cost analysis from the course can be directly used for financial modeling.

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Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Environmental Economics.

Natural Resource Economics

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Provides a comprehensive overview of environmental economics principles and their application to real-world policy issues. It is widely used as a textbook in environmental economics courses. It offers in-depth coverage of topics such as externalities, pollution control, resource management, and benefit-cost analysis. Reading this book will significantly enhance your understanding of the course material and provide a solid foundation for further study.

Natural Resource Economics: The Essentials

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Putting Knowledge to Work

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Explores innovative approaches to climate policy, focusing on practical solutions and real-world examples. It provides a fresh perspective on the challenges and opportunities of transitioning to a low-carbon economy. While not a traditional textbook, it offers valuable insights into the political and economic dynamics of climate policy. It serves as excellent additional reading to broaden your understanding of the subject.

Putting Knowledge to Work

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Putting Knowledge to Work

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Environmental Economics

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