Students understand the different paradigmatic approaches to the economic use of natural resources. Students know the reasons of market failures and political failures in environmental areas. Students are familiar with the environmental policy instruments and know about the advantages and disadvantages of using the instruments for different environmental problems. Students understand both the welfare theory basics and the different methods that are used in the area of cost and benefit analyses. Students understand the basics of using exhaustible and renewable resources.

Students in the Bachelor "Wirtschaftswissenschaften", who want to specialize in the Core Subject "Public Finace, Environment and Health"

• Paradigmatic principles of environmental economics: neoclassical environmental economics, ecological economics, contradictions, consequences for environmental policy, sustainability, safe minimum standard
• Market and political failures as causes of environmental problems: external effects, common property problems (non-exclusibility, non-rivalry and collective goods), Public Choice and environmental problems.
• Instruments of environmental policy: negotiations (Coase Theorem), liability regulations, command and control, environmental taxes, subsidies, permits, environmental policy under uncertainty (Weitzmann Theorem)
• Cost-benefit analysis as an environmental policy instrument: welfare-theoretical basics (welfare measures, use and non-use values), indirect procedures for assessing environmental benefits (expenditure method, hedonic prices, travel expenses approach, ...), direct procedures for assessment (contingent valuation), benefit transfer
• Introduction into Resource Economics: exhaustible Resources, renewable Resources

• Environmental Economics in Theory and Practice, Nick Hanley, Jason F. Shogren, Ben White, Macmillan, 1997.
• The theory of environmental policy, William J. Baumol and Wallace E. Oates, 2. edition, Cambridge University Press, 1988.
• Cost-Benefit Analysis and the Environment, Nick Hanley, Clive Spash, Edward Elgar, 1993.

Introduction into Micro-Economics

The course is offered in German. If you do not speak German but want to enroll in the course, please contact Franz Hackl.

There are two exam dates on site at JKU:

• February 6, 2025 from 12:00 to 13:30 in HS 7.
• February 27, 2025 from 12:00 to 13:30 in HS 7.

You may take one or both exams. The better grade counts.

The course will be held in presence at JKU in the winter term 2022/23.