This course focuses on environmental issues from the point of view of economics, and covers fundamental theories and methods of environmental economics. Environmental issues such as global warming, deforestation, and air pollution arise from economic activities. In order to resolve these issues, effective environmental measures should be taken based on the understanding of source of trouble. The concept of environmental economics is essential for drawing up the measures. In addition, this course introduces recent topics related to environmental issues and environmental policies. This course facilitates students’ understanding of the concepts of environmental economics by introducing actual environmental policies applied to global and regional environmental issues.
At the end of this course, students will be able to understand and explain:
1) The relationship between environmental issues and modern lifestyle based on large-scale production and consumption.
2) How economic mechanisms work and why they fail.
3) The differences between direct regulatory instruments and economic incentives in environmental policies.
4) The selection of effective policy instrument for resolving an environmental issue.
5) Theories and methods for environmental valuation.
6) Environmental issues and the implications for business.
7) Global environmental issues and international environmental policies from the point of view of sustainable development.
Recycling-based society, Global warming issue, Externality, Public goods, Direct regulatory instruments, Market failure, Environment tax, Subsidy, Coase theorem, Emissions trading, Environmental value, Sustainable development
|✔ Specialist skills||Intercultural skills||Communication skills||✔ Critical thinking skills||✔ Practical and/or problem-solving skills|
At the beginning of each class, students are given a basic explanation for required learning. Towards the end of class, students are given exercise problems related to the lecture given that day to solve.
|Course schedule||Required learning|
|Class 1||Introduction||Economics and the environment|
|Class 2||Relationship between our way of life and the environment (1)||Economic growth and the environment, Waste issue and the recycling-based society|
|Class 3||Relationship between our way of life and the environment (2)||Global warming issue|
|Class 4||Environmental issues arising from economic systems (1)||Externality and market failure, Utilization and management of common-pool resources|
|Class 5||Environmental issues arising from economic systems (2)||Public goods and free rider|
|Class 6||Fundamental theories for environmental policies (1)||Direct regulatory instruments and market mechanism, Environment tax and subsidy|
|Class 7||Fundamental theories for environmental policies (2)||Coase theorem, Emissions trading|
|Class 8||Application to environmental policies (1)||Selection of policy instrument, Waste policy|
|Class 9||Application to environmental policies (2)||Paris Agreement, Kyoto Protocol, Strategy on climate change|
|Class 10||Theory and methods for environmental valuation (1)||Environmental value, Revealed preference method|
|Class 11||Theory and methods for environmental valuation (2)||Stated preference method, Cost and benefit analysis|
|Class 12||Business and the environment||Green action in business, Corporate social responsibility, Environmental risk, Biodiversity and ecosystem|
|Class 13||Environmental economics and global environmental issues (1)||International trade and the environment, Environmental control and technology progress|
|Class 14||Environmental economics and global environmental issues||Sustainable development, Energy economy|
To enhance effective learning, students are encouraged to spend approximately 100 minutes preparing for class and another 100 minutes reviewing class content afterwards (including assignments) for each class.
They should do so by referring to textbooks and other course material.
Kuriyama, Koichi and Managi, Shunsuke. The Essentials of Environmental Economics, 4th ed. Tokyo: Yuhikaku; ISBN 978-4-641-17729-1. (Japanese)
Hibiki, Akira and Arimura, Toshihide. An Introduction to Environmental Economics. Chuokoron-Shinsha; ISBN-13: 978-4121016485. (Japanese)
Students' knowledge about basic theories of Environmental Economics and their ability to apply them to environmental issues will be assessed.
Exercise problems 60%, exam and report 40%.