Dr Benjamin Groom (KGS 2.03) and Dr Dominik Hangartner (COL 8.03)

This course is compulsory on the MSc in Environmental Economics and Climate Change. This course is available on the MSc in Local Economic Development and MSc in Real Estate Economics and Finance. This course is available with permission as an outside option to students on other programmes where regulations permit.

This course will provide an introduction to quantitative methods in use in modern environmental and resource economics. Emphasis will be placed on the practical use of empirical tools. This applied focus will be complemented by the investigation of assumptions and proofs that can improve the understanding of empirical results. A number of relevant applications making use of computers will be presented and, in doing so, use of a wealth of interesting and topical environmental data sets will be made. To this end, ten seminars of one hour each will be provided. During the seminars the students will gain understanding of the software STATA. Additionally, in some of the seminars, selected papers in quantitative environmental economics will be critically discussed. Again the focus will be on relevant empirical papers published in the area. The module will cover several estimators. We will start with the standard linear regression model, its assumptions, violations and testing procedures. Some non-Linear Models will also be presented, including Multivariate Probit and Logit Models (Maximum Likelihood). Extensions of the Linear regression model to incorporate panel data estimators and Instrumental Variables (IV) approaches (e.g. Two Stages Least Squares and Fixed and Random Effects models) will be also covered. The course will conclude with a discussion of programme evaluation methods and randomised control trials (RCTs).

20 hours of lectures and 10 hours of seminars in the MT.

A selection of seminar exercises will be marked for formative appraisal.

Detailed reading lists will be provided to support each course component. The following texts will be particularly useful: a) Stock J.H. and M.W. Watson (2011). Introduction to Econometrics. Third Edition Pearson International Edition; b) J. Wooldridge (2006), Introductory Econometrics: A modern approach, Thomson; c) Angrist J and Pischke J.S. (2009) Almost Harmless Econometrics, Princeton.

Exam (100%, duration: 2 hours) in the main exam period.