Course Syllabus

SYLLABUS

Environmental Economics

Semester & Location:	Spring 2027- DIS Stockholm
Type & Credits:	Spring course - 3 credits
Faculty:	Fairouz Hussien - Contact via Canvas Inbox
Time:	See Course Summary below
Classroom:	TBA
Major Disciplines:	Economics, Environmental Studies
Related Disciplines:	Public Policy
Prerequisites:	One economics course at university level.
Program Contact:	ibge@dis.dk

Course Description

In this course we will explore the economic dimensions of the global transition to sustainability, with a focus on the challenges, friction costs, trade-offs, and political tensions that shape pathways toward a greener economy. We will take a critical look into how economic systems, policy tools, and social behaviors interact in attempts to reconcile growth with ecological limits, while actively engaging with questions such as: Can capitalism ever be truly sustainable? What are the limitations of market mechanisms like carbon taxes and tradable permits? How do issues of equity, power, and culture influence environmental policy outcomes?

Together we will investigate core topics in environmental economics, including environmental valuation, cost-benefit analysis, renewable energy transitions, agricultural dilemmas, and green finance.

Learning Objectives

By the end of the course, students should be able to:

1. Critically evaluate sustainability concepts by distinguishing between environmental economics, ecological economics, and broader notions of environmentalism and welfare.
2. Apply economic valuation methods (e.g., cost-benefit analysis, contingent valuation, ecosystem services valuation) to real-world environmental goods and services.
3. Analyze policy mechanisms such as carbon taxes, emissions trading, Pigouvian taxes, subsidies, and regulatory frameworks, including their strengths, weaknesses, and political economy dimensions.
4. Understand behavioral dimensions of sustainability, drawing on behavioral economics, cultural practices, and social norms to explain why individuals and societies struggle to “walk the talk.”
5. Synthesize theoretical and practical insights through group projects, fieldwork, and final presentations, demonstrating the ability to connect economic reasoning with real-world environmental dilemmas.

Faculty

PhD @ Stockholm School of Economics (Sweden), M.Sc. @ Hanken School of Economics (Finland). Co-founder of the SSE Methods Lab, and co-founder of SIDI (Stockholm Interdisciplinary Initiative) at DIS Stockholm. Research focus on economic regulation, market dynamics, and antitrust. Expertise from the airline industry. Coffee enthusiast and a book collector.

Readings

All readings will be available for download in Modules.

1. Rockström, J. et al. (2009). "A Safe Operating Space for Humanity." Nature, 461, 472–475.
2. Hardin, G. (1968). "The Tragedy of the Commons." Science, 162(3859), 1243–1248.
3. Hopwood, B., Mellor, M., & O'Brien, G. (2005). "Sustainable Development: Mapping Different Approaches." Sustainable Development, 13(1), 38–52.
4. Costanza, R. et al. (1997). The Value of the World's Ecosystem Services and Natural Capital. Nature, 387, 253–260.
5. Turner, R. K., Paavola, J., Cooper, P., Farber, S., Jessamy, V., & Georgiou, S. (2003). "Valuing nature: Lessons learned and future research directions." Ecological Economics, 46(3), 493–510.
6. Arrow, K.J. et al. (1996). "Is there a role for benefit-cost analysis in environmental, health, and safety regulation?" Science, 272(5259), 221–222.
7. Stern, N. (2006). Stern Review: The Economics of Climate Change. HM Treasury. — Executive Summary (pp. i–xxvii).
8. Pigou, A.C. (1920). The Economics of Welfare. London: Macmillan. Part II, Chapter VI ("Divergences between Marginal Social Net Product and Marginal Trade Net Product"), pp. 149–179.
9. Mankiw, N.G. (2009). "Smart Taxes: An Open Invitation to Join the Pigou Club." Eastern Economic Journal, 35(1), 14–23.
10. Marquis, C., Toffel, M.W., & Zhou, Y. (2016). Scrutiny, norms, and selective disclosure: A global study of greenwashing. Organization Science, 27(2), 483–504.
11. Betz, R., & Sato, M. (2006). Emissions trading: Lessons learnt from the 1st phase of the EU ETS and prospects for the 2nd phase. Climate Policy, 6(4), 351–359.
12. Cialdini, R. B., Reno, R. R., & Kallgren, C. A. (1990). A focus theory of normative conduct. Journal of Personality and Social Psychology, 58(6), 1015–1026.
13. Poore, J. & Nemecek, T. (2018). "Reducing food's environmental impacts through producers and consumers." Science, 360(6392), 987–992.
14. Garnett, T. (2011). "Where are the best opportunities for reducing greenhouse gas emissions in the food system?" Food Policy, 36(S1), S23–S32.
15. Smil, V. (2017). Energy and Civilization: A History. MIT Press. Selected pages from chapter 6
16. LeMenager, S. (2014). Living Oil: Petroleum Culture in the American Century. Oxford University Press. (Prologue)
17. Corbett A. Grainger; Charles D. Kolstad. (2010). Who Pays a Price on Carbon?. , 46(3), 359–376. doi:10.1007/s10640-010-9345-x
18. Acemoglu, Daron; Aghion, Philippe; Bursztyn, Leonardo; Hemous, David . (2012). The Environment and Directed Technical Change. American Economic Review, 102(1), 131–166. doi:10.1257/aer.102.1.131

Field Studies

#1 Perceptions of Sustainability

#2 Visit to Matsmart

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 acadsupport@disstockholm.se

Expectations of the Students

I expect all of you to show up to class with a good attitude, and the understanding that your laptop will remain closed unless I state otherwise.

I also expect all of you to have done your readings, homework, and assignments in a timely manner. If you encounter a situation that could cause a delay, please communicate that asap.

For work that needs to be submitted:

• 1-5 days delayed: work will be accepted, but an automatic penalty of points will be taken.
• 6< days delayed: work will no longer be accepted, and the points given will be 0.

Use of laptops or phones in class:

• No phones or laptops open unless stated otherwise. Lecture slides will be posted into Canvas afterwards, but should you need to make notes, you may do so by hand. If you physically cannot do that, please do not hesitate to share your accommodation letter and we can adapt accordingly.

Evaluation

Aside from the submitted materials, you will also be evaluated based on an abundance of in-class work. Some of it will be individual, most of it will be in groups. I do not expect perfection, but I do need to see genuine effort being put into the work you do in class.

Grading