module specification

Environmental Economics and Investment is a Level 7 module which is core to MSc Corporate Social Responsibility and Sustainability.   It is one of the optional Economics modules studied on other courses.

The Environmental Economics and Investment module considers in depth the issues faced by governments and businesses in the face of climate change and other global trends in relation to the environment and the economy.  It extends their understanding of the complex and critical relations between man and nature in the processes of economic reproduction.

The module assesses the standard economic principles in their use as tools to investigate the causes, consequences and the possible solutions to problems of environmental degradation and climate change. The three major themes in the module are (i) the determination of the ‘optimum’ levels of environmental resource usage (ii) the analyses of alternative ways of attaining those targets and (iii) the impact of these actions on business decision making.

The crucial notion of 'sustainability' is a key to the investigation. So are the proximate and underlying causes of environmental problems. The main aim of the module is to introduce students to the established economists’ way of analysing environmental problems, and to explore the evolving methodologies prompted by the environmental crisis now upon us.

Note: If there are not sufficient student numbers to make a module viable, the School reserves the right to cancel such a module. If the School cancels a module it will use its reasonable endeavours to provide a suitable alternative.

N/A

Basic understanding of the problem of sustainable development and limits to growth.  Introduction to sources of pollution, ecological systems and ecological economics.

The causes of environmental problems: population, income and consumerism; technology; property rights, externalities and market failure.

Determination of the optimum levels of environmental resource usage: the equi-marginal principle. (LO1)

Valuation of environmental resources: total economic value and valuation techniques 

Real options and investment economics as an approach to deciding when and how much to invest in conservation activities. (LO2)

Evaluation of alternative types of environmental policy instruments: the Coase Theorem and tradable permits; command and control; taxes; subsidies; environmental regulation (taxes, penalties) vs market and voluntary instruments.

Socio-economic management tools, including the promotion of eco-friendly attitudes by the state in conjunction with civil society (NGOs in all their variety). (LO3)

The economics of biodiversity as a case study: evaluation of the complex value of biodiversity and policy responses to the current massive loss of biodiversity. (LO4)

A bird's eye view on the economics of climate change: balancing the costs and benefits of climate change policies. (LO5)

Global trends in the environment and in the economy and their implications. (LO6)

Students’ learning is organised around direct contact time with the teaching team, and reflective independent learning. The direct contact time takes place through lectures and seminars. Students are expected to complement this 'formal' learning activity with further reading of the material suggested in the teaching sessions, solving realistic business problems using economic analysis, research, writing, planning and preparation for coursework and the final written exam.

Student contact time will normally be 3 hours per week. Lectures will typically be around 2 hour duration and will deliver core subject knowledge in environmental economics. As this module emphasises the development of theory, policy and application students will be given environmental problems to solve. This activity will form the basis of the seminar.

The contact time with teaching teams will include active learning to acquire knowledge and understanding, problem solving, problem-based learning, presentations, analysis of case studies, group reading and analysis of research papers, discussion of policy issues and debate.

A number of activities will require students to carry out independent work prior to meetings with lecturers. Students will be required to engage with research published in high level academic journals and research institutes.

Professional and transferable skills are developed in lectures and seminars, and through independent directed learning and assessment. Skills development is enhanced through problem solving and problem-based learning practiced in seminars, working co-operatively in groups around tasks that reflect the learning outcomes specified earlier in the document.

The module makes extensive use of blended learning through use of virtual learning environment platforms (Web-Learn) in which module lecture material, course handbooks, test questions, feedback on assessment, and other material is placed. Other ICT resources include links to key web resources such as Government departments, and research institutes.

On successful completion of this module students will be able to:

1. demonstrate a good understanding of the principles of economic analysis and its application in examining environmental problems through an appreciation of the economic causes and consequences of environmental degradation brought about by economic activity;

2. understand, research and critically evaluate market-based mechanisms, using tools and techniques that identify opportunities as well as risks  of environmental degradation in the absence of overt intervention, and the need for, and role of, environmental regulation;

3. understand, and appreciate, the differences between alternative methods for valuing environmental resources and environmental damages;

4. appreciate the economic consequences of alternative types of policy instruments for biodiversity conservation;

5. appreciate the role of cultural and attitudinal factors as determinants of environmental degradation and of the need for these to be addressed for the purpose of climate change mitigation and adaptation;

6. critically examine the implications of global trends for the environment and for the economy.

The assessment strategy is developed with the aim of testing the module's learning outcomes. Students will be assessed by both formative and summative assessment through coursework and an unseen exam. The essay and the exam will provide a thorough assessment of students' knowledge of the key issues in contemporary environmental economics and their ability to synthesising and present complex reasoning clearly and concisely.

Arrangements for formative and summative feedback

Seminars are important activities where formative and summative feedback is provided. In these sessions the assessment instruments and assessment criteria are explained and discussed. Examples of past good practice in assessment are placed on Weblearn and linked clearly to the assessment criteria used in the assessment. Through this process students have access to examples of best practice and see the grading criteria in operation. Students will be encouraged to provide critical feedback on the assessment tool as it evolves.

Students have periodic opportunities to receive formative feedback on their assessment. When students orally present coursework this provides an opportunity for students to receive early formative feedback. There is then an opportunity for self-reflection and development before final submission of the piece of work. This activity will enable students to further reflect upon and deepen their understanding of assessment criteria, assessment outcomes, the performance of peers and their own performance.

The module will be assessed through two pieces of work:

Coursework involving a research essay of 1500 words;

Unseen written exam of 2 hours duration

Reading List Talis Link:

https://bblearn.londonmet.ac.uk/webapps/blackboard/content/launchLink.jsp?course_id=_41916_1&tool_id=_2924_1&tool_type=TOOL&mode=cpview&mode=reset

Core Reading:

Hanley, N., Shogren, J., and White, B. (2013), Introduction to Environmental Economics Oxford University Press 3/E

Stavins R N ‘Economics of the Environment’ 5/E 2005.  6/E 2012.

This is a very good and useful collection of Collected Key Articles

Additional Reading:

Hussen A.  Principles of Environmental Economics and Sustainability.   4/E 2019 Routledge

Klein N. This Changes everything       Simon and Schuster 2014

REGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088.

22.6.2020 Official Journal of the European Union L 198/13

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32020R0852

Stern, N. (2006) The Economics of Climate: The Stern Review, HM Treasury

UK Treasury: THE GREEN BOOK, CENTRAL GOVERNMENT, GUIDANCE ON APPRAISAL AND EVALUATION 2018

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/685903/The_Green_Book.pdf

Goodstein.E.S., Polasky.S.,   Economics and the Environment 8/E 2017 Wiley (e-book)