EC240: Environmental Economics and Sustainable Development

Environmental economics & Sustainable Development are at the cutting-edge of economic research and teaching dealing with some of the most pressing issues of our time, such as Climate Change.

In successfully applying standard microeconomic analysis to the field of the natural environment and sustainable development, economists have challenged many erroneous, but strongly held preconceptions of policy makers and environmentalists alike. For example, the course will show that the efficient level of environmental pollution is, in general, not zero and that there is no risk of running out of fossil fuel non-renewable resources any time soon.

Conversely, however, policy makers fail to understand the fundamental drivers behind renewable resource extinction (particularly species loss), are over-optimistic when it comes to the environmental consequences of economic growth and insufficiently grasp the obstacles toward achieving strong multilateral agreements for solving international and global environmental problems.

This course aims to provide students with a sound knowledge and understanding of the major results of environmental economics. Its intention is to deliver the fundamentals of rigorous economic analysis for continued undergraduate studies at a higher level, or graduate studies of environmental economics.

Students who receive an offer for this course are also eligible to apply for the Academic Director's Scholarship.

Prerequisites: Introductory microeconomics (to the level of EC101: Introductory Microeconomics) and knowledge of very basic differential calculus in order to maximize or minimize a function.

Level: 200 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: Two written examinations

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

This course will suit you if you want to understand what drives the exploitation of natural resources and the pollution of the environment, including climate change and global warming. You should consider taking this course if you are interested in pursing a career in government, non-governmental organizations, international organizations but also private businesses as all of these must engage with and tackle the enormous environmental issues of our times.

The course aims to provide students with a sound knowledge and understanding of environmental economics and sustainable development. Its intention is to deliver the fundamentals of rigorous economic analysis for continued undergraduate studies at a higher level, or graduate studies of environmental economics.

• To understand the root causes of environmental problems and to be able to recommend efficient solutions to them

• To appreciate why the environmental issues of non-renewable resources (e.g. oil) are very different from the issues of renewable resources (e.g. fishing) and to be able to recommend policies for addressing these issues

• To understand and be able to critique the monetary valuation of the environment

• To understand why international environmental problems are much more difficult to solve than purely domestic ones

• To analyze climate change and global warming as an economic problem that affects everything human beings do and to understand the promise but also limitations of what economics can offer to solve this hugely challenging problem

The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.