Environmental Economics B

Environmental Economics at DIS introduces students to the key economic theories and policy tools used to address today’s pressing environmental challenges. The course is organized around 5 modules, each focused on a distinct theme within environmental economics. Emphasizing both theory and application, students will engage with academic literature, real-world case studies, guest lectures, and field visits to examine the intersection of economics, the environment, and policymaking.

Module 1: Foundations of Environmental Economics

Our first module starts by discussing the tension between the economy and the environment and introduces the discipline of environmental economics. Building on the microeconomic theory of externalities, we examine how to explain environmental problems from an economic perspective and develop an analytical basis for addressing them through policy.  

Module 2: Policy Approaches

In the second of our foundational modules, we look at the major policy approaches to addressing environmental problems. We start by examining the economics of pollution and discuss regulation, voluntary approaches, and market and price-based policy measures. We also discuss the problems and trade-offs associated with policy design, choice, and analysis. 

Module 3:  Circular Economy as a Policy Goal - Case Study

Equipped with the theory, concepts, and analytical framework from the foundational modules, in the third module, we will look at the idea of the Circular Economy. We will be joined by circular-economy expert and practitioner Cecilie Ploug Sarp, who will introduce the concept of the circular economy and describe how she applies it in practice. We will conduct our second study visit to observe the circular economy in practice. Towards the end of the module, we will apply the tools, concepts, and analytical framework we developed in the earlier part of the course to test the assumptions of both our analytical framework and the concept of circularity. 

During this module, you will also prepare for and take the mid-term exam.

Module 4: Sustainable Development, The State, Technology

In our fourth module, we shift to a more macroeconomic perspective, examining the tension between the economy and the environment at the level of the whole economy. We will discuss such current issues as sustainable development, green industrial policy, and the state's role in promoting green technological innovation. 

Module 5: Themed Classes in Economy and Environment

The final module provides a range of critical in-depth case studies of particular issues that demonstrate the range of topics covered during the course. We will look at the political economy of environmental policies such as the European ETS; the economic decision-making behind wetland restoration in the Mississippi River Delta in Louisiana (my own PhD work); the relationship between environmental policy and Sami reindeer herders in northern Sweden (with a guest lecture from David Harnesk), and the landscape of international climate change agreements and geopolitics.

Learning Objectives

The objectives of the course are (1) to give you a broad understanding of the causes and alternative solutions to modern environmental problems from an economic perspective, and (2) to apply insights derived from economic theory in designing and evaluating policy solutions to a variety of environmental issues.

You will learn to understand the role of economics in environmental issues and in the formation of environmental policy. You will learn that economic objectives do not necessarily conflict with environmental goals, and that while environmental crises commonly arise as a result of market failures, market incentives can at times be used to improve environmental quality.

By the end of this course, you will be able to express an informed view on the role, contribution, and limitations of economic tools in providing policy guidance on environmental issues.

Faculty

David O'Byrne, PhD. Lecturer in Environmental Studies at Malmö University and Environmental Economics at DIS Copenhagen. PhD in Sustainability Science from Lund University (2020) - Political Economy of Coastal Wetland Restoration.  

Course Requirements

This course presupposes at least one introductory economics course, preferably microeconomics. This means that you are expected to be comfortable handling basic supply and demand analysis both graphically and algebraically (i.e., with simple equations). If you are unsure that you can fulfill this expectation, please let me know as soon as possible and we will figure it out.

Course Materials

Required reading assignments from course books will be made available online, along with supplementary articles. Required readings for each lecture are posted with the class description and can be found under the relevant module. Check the course outline and the calendar for each lecture frequently for updates.

I suggest that you familiarize yourself with the readings before class and read them more carefully afterward. Please also consult the readings when completing exercises and assignments. 

Class materials, such as lecture slides and other notes, will be added to Canvas either shortly before or immediately after each class.

Teaching and Learning Activities

Lectures - Are one of the main teaching and learning activities in the course. But despite the name, they do not involve 80 mins of me talking in one-way traffic. These classes will be interspersed with discussions, exercises, experiential and practical elements.

Seminars - These are sessions where the focus is on discussion, interaction, experience, and practical activities.

Field Studies - We will make Copenhagen our classroom in two field studies. In the first, we will take a tour of the pioneering sustainable urban development at Örestad. In the second, we will explore the circular economy in context (destination to be confirmed).  

Guest lectures - This course includes a series of guest lectures, both academics and professionals, and including economists and those with a background from other disciplines, to aid in your understanding and application of class topics.

Assignments and Grading

We have a variety of written and oral assignments to develop students' facility with the tools of environmental economics and policy analysis, both inside and outside of class. They are as follows (grading in brackets): 

The grading allocation will be as follows:

Participation: Key Take Away (10%) assignments, you are asked to summarize each module's learning in 3 bullet points.

Class Participation (5%)

Class Attendance (5%)

Review Lecture Presentation (10%), in groups you will prepare a mini-lecture on one topic from the two foundation modules and present to the class as a means of revision for the mid-term. 

Short written paper (15%), a letter to the editor of a newspaper responding to an article about an environmental problem. 

Midterm Exam (multiple choice and short question, aids allowed, take-home exam: zoom): 20% 

Final assignment: (35%) 

5%: Topic submission

30%: A weighted average  of an essay on a topic of your choice and a presentation during the final seminars.

During the first two modules there are also a number of exercises to help you familiarize yourself with our fundamental analytical framework. There will be time allocated during each class to work on these, but you might need some additional time after class to complete them. Completing these exercises is essential to get a good participation grade. 

We will discuss the quality criteria required for the various assignments in class. 

Graded Assignments Policy Statement

Assignments should be submitted by the stated deadline. We can always make accommodations for students that have reasonable reasons for not being able to submit in time, but please try to have that discussion with us before the deadline so that we can come to an alternative arrangements.

ChatGPT and Generative AI Tools Policy

Generative AI is permitted in specific contexts and with acknowledgment. 

Understanding and effectively utilizing generative AI tools (such as ChatGPT, Co-pilot, etc.) is becoming a relevant skill across various professions, including environmental economics. As a student, and soon to be young professional, you are faced with the critical task of deciding how you will engage with AI in order to best further your learning and your professional life. As it becomes more and more difficult to detect when someone has used or is using AI, the decision about to what extent you use AI is totally up to you. I believe that overreliance on AI will rob you of the ability to develop the most important human skills, creativity and critical thinking, and leave you in bad position with regard to both learning and your career, so please exercise judgement and prioritize your long term development over short term convenience. Here are some guidelines: 

Reasonable use of AI

• Help with brainstorming ideas for essays (being mindful that chat GPT and other software may make mistakes and are not reliable sources of information!)
• Revising language for clarity, grammar, or cohesion or refining the structure and flow of content that you have written.
• Clarifying complex concepts from class or materials or asking AI to provide examples to support your understanding of class concepts.

Counter-productive uses

• Copy-pasting unedited content directly generated by AI into submitted work.
• Using AI tools to bypass critical thinking, problem-solving, or creative processes central to the assignment's learning objectives (during the midterm exam or in any other capacity)
• Submitting work that has been edited or developed with the assistance of AI softwares without clear acknowledgements of how such software was used.
• Use of AI in any way that conflicts with DIS academic regulations (see below)

In this class, you may explore and use generative AI tools as a resource, provided your use aligns with ethical guidelines and standards for academic integrity (see academic regulations below). Most importantly, any substantial use of generative AI tools must be transparently documented and properly cited into any submitted work. For example, if you choose to use any AI software to assist with your climate change or final assignment essays, you should mark in the end of the assignments: "This content was revised for grammar and clarity using ChatGPT" or "This initial draft was generated with assistance from ChatGPT." Using AI and not properly acknowledging it in your essays risks that the assignment will be flagged as plagiarism.

Finally, I advise caution not only because it may harm your own learning experience but also because of environmental issues associated with certain AI tools. A few examples of relevant environmental issues can be found here:

https://apnews.com/article/chatgpt-gpt4-iowa-ai-water-consumption-microsoft-f551fde98083d17a7e8d904f8be822c4 

https://www.theguardian.com/commentisfree/2023/dec/23/ai-chat-gpt-environmental-impact-energy-carbon-intensive-technology

https://www.techradar.com/pro/chatgpt-is-having-a-really-bad-impact-on-the-environment

Ultimately, it is up to you as a student to decide how to use AI within this course. 

Special note about laptop use in class:

Use of laptop computers in class is allowed for the purpose of note-taking ONLY; other computer activities can prove distracting.  Students should also refrain from any activity/behavior that may be disturbing to other students who are making the effort to be attentive.

DIS Accommodations Statement

Your learning experience in this class is important to me. If you have approved academic accommodations with DIS, please make sure I receive your DIS accommodations letter on the first days of class. If you can think of other ways I can support your learning, please don't hesitate to talk to me. If you have any further questions about your academic accommodations, contact Academic Support academicsupport@dis.dk

Volunteer Opportunities That Align With This Course:

Students often want to volunteer as part of their time in Copenhagen. Below are some opportunities that might align with your course content. These are curated by the Academics Department, and not your faculty, so please reach out to mne@dis.dk if you have questions.

Cafe Mellemrummet by ActionAid

About the Space & Opportunity:

Mellemrummet is not your average café. It’s an open, inclusive community space, run by a diverse group of volunteers. Whether you’re passionate about climate activism, decolonial struggles, gender equality, or simply want to meet likeminded people, this is a space where you can engage, learn, and contribute.

As a volunteer at Mellemrummet, you become part of an international and activist-minded community. You’ll be trained to work café shifts (minimum 3 x 4-hour shifts per month), and have the opportunity to join or create events, contribute to communication, or support ongoing projects.

Contact Information

If interested please reach out here, and include that you are a DIS student here for the semester or year.

Mellemrummet.pc@gmail.com

https://www.ms.dk/en/mellemrummet/volunteer

Grønt Marked

About the organization & opportunity: 

“Grønt Marked is a non-profit organization dedicated to the development of a community-based alternative food system supporting small-scale Danish produce and producers. Closing the gap between farm and fork, our project brings seasonal and local produce, and sustainable farming practices from the countryside to the city.”

Volunteer run farmer's market to support local producers. Volunteers can help with set up and clean up on market days. Shifts last 3 - 4 hours

Contact Information: 

If interested please send an email here: 

volunteer@groentmarked.dk

https://www.groentmarked.dk/english/want-to-volunteer/ 

Readings

Textbooks (all required excerpts will be posted on Canvas, no textbooks to be picked up from the DIS Library during arrivals week)

• Field, B. C., & Field, M. K. (2006). Environmental Economics: An Introduction (4th ed.). McGraw-Hill Irwin.
• Harris, J. M. (2005). Environmental and Natural Resource Economics: A Contemporary Approach (2nd ed.). Houghton Mifflin.
• Hussen, A. (2019). Principles of environmental economics and sustainability: an integrated economic and ecological approach. Routledge.
• Sterner, T., & Coria, J. (2013). Policy Instruments for Environmental and Natural Resource Management. Routledge.

Articles/Reports (all required readings will be made available in Canvas)

• Atkinson et al. (2018). Cost Benefit Analysis and the Environment. OECD Publishing, Paris.http://dx.doi.org/10.1787/9789264085169-en
• Coase, R. H. (1960). The Problem of Social Cost. The Journal of Law & Economics, 3, 1–44.
• Croci, E. (2005). The economics of environmental voluntary agreements. Handbook of Environmental Voluntary Agreements, 3–30. Springer.
• Fullerton, D., & Stavins, R. (1998). How Economists See the Environment. Nature, 395, 433–434.
• Harris, J. M. (2013). Green Keynesianism: Beyond standard growth paradigms.
• Helbling, T. (2012). Externalities: Prices Do Not Capture All Costs. International Monetary Fund, 3 pp.
• IPCC. (2014). Climate Change: Mitigation of Climate Change - Summary for Policy Makers.
• Sen, A. (2016). The ends and means of sustainability. In The capability approach and sustainability (pp. 5-19). Routledge.
• Solow, R. (2010). An almost practical step toward sustainability. In The RFF Reader in Environmental and Resource Policy (pp. 273-282). Routledge.
• Sunstein, C. R., & Weisbach, D. A. (2008). Climate Change and Discounting the Future: A Guide for the Perplexed. Harvard Law School Working Paper, sections I and II, pp. 1–12.
• Voldsgaard, A., Mazzucato, M., & Conway, R. (2022). From competition state to green entrepreneurial state: New challenges for Denmark.
• Yan, D., et al. (2018). Environmental sustainable decision making– The need and obstacles for integration of LCA into decision analysis. Environmental Science & Policy, 87, 33–44. https://doi.org/10.1016/j.envsci.2018.05.018