Environmental economics

Photo credit: Paul Wyrwoll

Environmental and natural resources are the foundation for all economic activities. Water, air, land, and their related ecosystems provide critical inputs to the production and exchange of goods and services. The failure of markets to account for the economic value of environmental resources is a primary cause of their degradation through climate change, pollution, and over-extraction.

Environmental economics covers the study of how societies can and or should allocate resources for environmental outcomes, and the costs and benefits of alternative approaches to environmental management. The application of economic tools to environmental and resource problems can be powerful in informing policy. Key items in the environmental economist’s toolkit include: cost-benefit analysis, non-market valuation methods, environmental economic accounting, economic analysis of policy instruments. Economic theory and analysis have led to the development of carbon pricing, payments for environmental services, water markets, and many other innovations in environmental policy and regulation.

Our academics teach subjects within the Master of Environmental Management and Development and Master of Climate Change degree programs and other related postgraduate coursework programs.

Relevant courses