Environmental Economics ECON 860 (4)

The analysis of the role of the natural environment in economic system. All economic activity creates waste products (pollution) which must be disposed of back into the natural environment. The socially efficient amount of waste generation and disposal is determined and methods of reaching this level evaluated. This involves the theoretical and empirical determination of the costs and benefits of waste generation and a thorough discussion of the role of government policies: taxes, standards, tradeable emission permits versus private market initiatives (bargaining and green goods) under a variety of assumptions about the economic system. Equivalent Courses: ECON911.