Environmental Economics

Subject ECON30011 (2010)

Note: This is an archived Handbook entry from 2010.

Credit Points: 12.50
Level: 3 (Undergraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2010:

Semester 2, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable

Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: Three hours of lectures/seminars per week (Semester 2)
Total Time Commitment: Not available

316-201 Intermediate Macroeconomics and 316-202 Intermediate Microeconomics.

Corequisites: None
Recommended Background Knowledge: Please refer to Prerequisites and Corequisites.
Non Allowed Subjects: Students may not gain credit for both 316-324 Environmental Economics and 316-208 Economics of the Environment.
Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/


Dr Veronika Nemes



Subject Overview:

Environmental issues will be addressed with the aid of economic theory. Topics include sustainability of economies; pollution as an externality; approaches to dealing with pollution in different countries; methods of valuing the environment and environmental damage; effect on future generations; the use and depletion of renewable and non-renewable natural resources; and the environment and economic development.

  • Explain the externality and public good reasons for market failure and their relationship to environmental problems
  • Explain the difference between command and control methods and regulations that use economic incentives;
  • Critically evaluate the different regulatory approaches for dealing with environmental problems
  • Describe the importance of putting monetary values on environmental resources
  • Evaluate the methods of valuing the environment and the importance of environmental accounting
  • Explain the inter-linkage between population growth, poverty and environmental degradation;
  • Apply the theories discussed in class to empirical evidence;
  • Critically analyse the alternative policy proposals for environmental degradation.

A 2-hour end-of-semester examination (60%), an essay of approximately 3000 words (30%) and in-class assessment (in the form of seminar presentation and class participation) (10%).

Prescribed Texts: The Economic Approach to Environmental and Natural Resources (J Kahn), Harcourt Brace Publisher, (2nd edn), 1998
Breadth Options:

This subject potentially can be taken as a breadth subject component for the following courses:

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:
  • High level of development: oral communication; written communication; application of theory to practice; critical thinking; synthesis of data and other information; evaluation of data and other information.

  • Moderate level of development: collaborative learning; problem solving; team work; statistical reasoning; interpretation and analysis; accessing data and other information from a range of sources; receptiveness to alternative ideas.

  • Some level of development: use of computer software.


Students may not gain credit for both 316-324 Environmental Economics and 316-208 Economics of the Environment.

Related Majors/Minors/Specialisations: Economics Major
Environmental Geographies, Politics and Cultures
Environmental Studies Major

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