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This course will focus on linkages between the economy and the natural environment. A
significant portion of the course will be devoted to international aspects of environmental
problems. The objective of the course is to provide an overview of some of the relevant
theory and to introduce students to some current theoretical and empirical research topics.
The course will begin with a review of the theory of externalities and public goods, with an
emphasis on the implications for environmental problems. This will be followed by a study of
different approaches to pollution regulation. Using this framework, we will study issues such
as the relation between economic growth and the environment (the environmental Kuznets
curve), international trade and the environment, plant location and the environment, and
global environmental problems.
There will be a final exam (50% of the grade) and some assignments (50% of the grade).
There is no textbook. However, the following may be useful to consult:
Cropper and Oates, "Environmental Economics: A Survey," Journal of Economic Literature
1992: 675-740
Kolstad, C. Environmental Economics, Oxford University Press
Baumol and Oates, The Theory of Environmental Policy (Second Edition, 1988)
Copeland, Brian R. and M. Scott Taylor. Trade and the Environment: Theory and Evidence,
Princeton University Press, 2004.
Cornes, R. and T. Sandler. 1986. The Theory of Externalities, Public Goods, and Club
Goods. Cambridge: Cambridge University Press.
Resources for the Future website: http://www.rff.org/

112479.rar
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