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Advanced environmental economics 7.5 Credits

Second cycle, N7011N
Course syllabus valid: Autumn 2017 Sp 1 - Present
The version indicates the term and period for which this course syllabus is valid. The most recent version of the course syllabus is shown first.

Education level
Second cycle
Grade scale
Subject group (SCB)

Entry requirements

Bachelors degree or equivalent academic qualifications (180 ECTS, three year full time studies) with at least 60 ECTS in economics including thesis work corresponding to 15 ECTS.

More information about English language requirements


The selection is based on 20-285 credits

Course Aim

After completing the course the student should be able to use the theoretical tools covered at the course to:

a) Describe and critically examine the different schools of thought regarding the concept of sustainable development problem as well as different ethical perspectives on the relationship between the natural environment and the economic system.
b) Identify and analyze graphically and mathematical the presence of different market failures that give rise to an inefficient use of environmental resources in a market economy.
c) Identify and derive economically efficient pollution targets for different categories of pollutants.
d) Use both graphical and mathematical tools to analyze the impacts and the efficiency of different environmental policy instruments such as emissions trading, environmental taxes and emission limits.
e) Describe and critically evaluate different types of economic models (e.g., general equilibrium models) hat can be used to analyze the economic impacts of various environmental policy instruments.
f) Analyze the presence of cross-border environmental problems, and how these can – and have been – dealt with through various international agreements.
g) Explain and critically evaluate the basics of methods designed to value environmental impacts and changes in economic terms as well as the limitations of such methods, and use this knowledge to conduct simple economic valuation studies.
h) In written form as well as orally summarize, discuss and critically evaluate different works of science within the field

The sustainability problem
  • Ethics, economics and the environment
  • Welfare economics and market failures in the environmental field
  • Pollution control: targets
  • Pollution control: instruments
  • Economic models to analyze economy-wide impacts of policies
  • International environmental problems and agreeme
  • Valuation of the environment in theory and practice

Lectures and seminars. The course is if necessary given in English.

The examination of the course consist of a final written exam (4,5 ECTS). This exam tests goals a-f above. Furthermore, there is an oral examination on environmental valuation methods (1,5 ECTS), and this tests goals g and h above. Finally, students are also required to finalize a written report on the use of different types of environmental policy instruments (1,5 ECTS), and this tests goals d, e and h above.

All tests are graded U, G or VG. For VG at the entire course the student must get VG at the final exam. In borderline cases on the written exam, VG at the other two examinations can lead to VG at the entire course.

Students must register for the courses themselves, or contact ETS educational administration , not later than three days after the quarter commences. Failure to do so can result in the place being lost. This rule also applies to students with a guaranteed place.
This course can not be included in any degree in combination with N0024N Environmental Economics I or N7008N Advanced Environmental and Natural Resource Economics.

Patrik Söderholm

Literature. Valid from Autumn 2016 Sp 1 (May change until 10 weeks before course start)
Perman, R m.fl. (2011). Natural Resource and Environmental Economics, Fourth Edition, Addison Wesley.
Selection of scientific articles

Course offered by
Department of Business Administration, Technology and Social Sciences

0001Written exam4.5U G VG
0002Oral exam1.5U G VG
0003Written report1.5U G VG

Study guidance
Study guidance for the course is to be found in our learning platform Canvas before the course starts. Students applying for single subject courses get more information in the Welcome letter. You will find the learning platform via My LTU.

Syllabus established
by Director of Undergraduate Studies Bo Jonsson, Department of Business Administration, Technology and Social Sciences 15 Feb 2016

Last revised
by Director of Undergraduate Studies Daniel Örtqvist, Department of Business Administration, Technology and Social Sciences 15 Feb 2017