This module examines the interactions between the economy and the environment and provides an introduction to environmental economics. The module is split into four sections. The first introduces the topic and examines the fundamental ways in which the economy and the environment interact. The second section focuses on policies to prevent environmental degradation including pollution taxes and tradeable permits. Section three examines how and why economists value people’s preferences for the environment. Finally, section four applies economic analysis to a number of global environmental issues including climate change and deforestation.

On completion of this module students will be able to:

• demonstrate knowledge and understanding of the principles of economic analysis applied to environmental problems;
• identify and evaluate how the economy interacts with the environment;
• appraise how economic policies can be used to prevent environmental damage;
• understand the rationale for ‘valuing the environment’ and the methods used to undertake such valuation;
• apply the tools of economic analysis to a range of global environmental issues and gain a greater understanding of the economic causes of, and solutions to, these issues.