The course reviews and familiarizes students with the economic analysis of pollution and pollution control. The students learn how to identify the efficient amount of pollution abatement, which instruments can be used to regulate pollution and which practical difficulties can arise when designing effective regulations. The course takes a more advanced look at the difference between flow pollution and stock pollution, the consequences of uncertainty about abatement costs and pollution damage, and the economic valuation of pollution damage. We also discuss international environmental problems, with climate change as the most important example, and what the opportunities and limitations are for solving these problems through international cooperation.

Textbook: Perman et al. (2011), Natural Resource and Environmental Economics, 4th Edition.