ECON1051: The Economics of Sustainability

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ECON1051-WE01

ECONOMICS OF SUSTAINABILITY

2024

1) Discuss the main inter-temporal and inter-generational issues in the economics of sustainability. Consider, in particular, the use of discounting in cost-benefit analysis (CBA) in answering your question.

2) Describe and compare the advantages and disadvantages of using the following ‘Stated Preference’ and ‘Revealed Preference’ methods in environmental valuation: (a) Contingent Valuation, (b) Choice Experiments, (c) Travel Cost Method, and (d) Hedonic Prices.

3) Discuss the pros and cons of using ‘economic instruments’, relative to other approaches, to control point source environmental pollution. Provide details of the two most practical types of economic instruments used by regulators.

4) Discuss international environmental externalities and the success and difficulties of achieving international agreements. Use examples from the cases of greenhouse gasses, ozone depletion, and trade negotiations where necessary.

5) Discuss the electricity sector's current energy and environmental policy challenges. What insights and solutions might economics offer?

6) What are the characteristics of diffuse agricultural pollution that make it so challenging to regulate efficiently?  What criteria should be used for selecting regulatory control instruments to control such pollution? In this context, what does efficiency without optimality mean, and what is the role of transaction costs in designing optimal policies?

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