The course is divided in units. In the first part, after dealing with the issue of the environment in the economic thought, it studies the main relationship between economic development and environment. Then, it discusses the main aspects of market failures and covers the classic problems of environmental externalities and public goods/bads. This section compares the Pigouvian and the Coasean approaches to environmental issues, and concentrates on the instruments of environmental policy: Pigouvian fees and subsidies, tradeable emission permits and environmental bonds.
In the second part, the course presents the basic tools for the analysis of exhaustible and non-exhaustible resources, with specific regards to the intertemporal setting of the efficient use of natural resources. It also provides the students with some insights into the notion of sustainable development and non-market goods evaluation.