APME58-Resource and Environmental Economics

Module Provider: APD
Number of credits: 10 [5 ECTS credits]
Terms in which taught: Autumn term module
Non-modular pre-requisites: Basic knowledge of microeconomics and basic mathematics, regression methods
Modules excluded:
Module version for: 2016/7

Module Convenor: Dr Francisco Areal

Email: f.j.areal@reading.ac.uk

Summary module description:
This module covers the main issues in the fields of environmental economics and resource economics combining theory with applied material taught using computers. The module explains the relationship between ecological and economic system. In particular, the role of the natural environment in sustaining the socio-economic system will be discussed (i.e. the sustainability problem). Important market failures (environmental public goods, environmental externalities) and policies aiming at solving them will be explained. Such policy measures require a good understanding of the environmental impact of the economic activities. Also, some policy measures would require the economic valuation of the market and non-market goods and services provided by nature. The module explains some techniques used by environmental economists such environmental valuation and resource economics modelling. For this, a number of practical sessions in the computer lab are designed to familiarise students with applying these modelling techniques Regarding natural resource economics, students learn about dynamic optimisation of renewable and non-renewable resources.

To provide the students with the basic tools necessary to understand the importance of the environment in human welfare.

Assessable learning outcomes:
By the end of the module students will be able to:
1. To discuss and analyse the role the environment in supporting human welfare
2. To analyse environmental problems from an economic perspective
3. To develop analytical skills of one particular issue in environmental economics
4. To apply one environmental valuation method
6. To utilise simple dynamic optimisation methods into a natural resources exploitation context

Additional outcomes:
Students will learn through a set of tutorials some of the main applied techniques in resource and environmental economics developing basic programming knowledge (e.g. R)

Outline content:
The module will provide an understanding of the role of natural environment in supporting the socio-economic system. The effect of an increasing world economy on natural environment will be discussed, with particular attention to the emergence of market failures. The problem of accounting for the value of environmental goods and services will be discussed in depth and students will have the opportunity to practice one particular environmental valuation technique.

Lecture 1: Economic and environmental interactions
Lecture 2: Sustainability: Origin and concepts
Lecture 3: Environmental externality, environmental public goods and common property resources
Lecture 4: Environmental policy instruments
Lecture 5: Environmental Valuation
Lecture 6: Resource Economics: Basic concepts and solving allocation problems
Lecture 7: Resource Economics: The economics of fisheries I
Lecture 8: Resource Economics: Forestry Economics

Practical 1: Environmental valuation I (Autumn)
Practical 2: Environmental valuation II (Autumn)
Practical 3: Resource Economics Modelling I (Autumn)

Brief description of teaching and learning methods:
Teaching will be delivered through a series of 2-hour lectures, which will include also opportunities for students to work in group and discuss specific issues. The module will also provide students with the opportunity to further their understanding of a particular issue in environmental economics by working on a group project. Also a series of practicals will help the students to familiarise with two environmental valuation techniques; environmental input-output tables; dynamic optimisation.

Contact hours:
  Autumn Spring Summer
Lectures 16
Practicals classes and workshops 6
Guided independent study 78
Total hours by term 100.00
Total hours for module 100.00

Summative Assessment Methods:
Method Percentage
Practical skills assessment 60
Class test administered by School 40

Other information on summative assessment:
Autumn Term:
1. In-class test (40%)
2. One practical in environmental valuation (60%)

Formative assessment methods:
Sample test questions will be put in Blackboard.

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Length of examination:

Requirements for a pass:
A mark of 50% overall.

Reassessment arrangements:
By examination in August/September.

Additional Costs (specified where applicable):
1) Required text books:
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:

Last updated: 21 December 2016

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