Graduate Preparatory Environmental Economics

The aim of the introductory economics course is to revise basic economic concepts so as to prepare students for economic courses that they are required to do as part of the Master of Environmental Management and Development and Master of Climate Change with many different backgrounds and levels of competency in economics. Some students may already be familiar with the concepts in this prep course, while others may be embarking for the first time on economic study. The course ensures that all students are brought to the same level. Environmental economics provides tools for analysing environmental issues in a balanced and quantifiable way. Economics is the study of behaviour under changing conditions, and environmental economics addresses how people’s use of the environmental or natural resources change in response to shifts in scarcity. For environmental issues, part of the solution always lies in identifying approaches that generate trade-offs between competing demands at the least cost. Environmental economics provides the tools for policy makers to make the most effective and efficient decisions to generate the best outcomes possible. Economics studies how people make decisions about using scarce resources, and environmental economics specifically analyses people’s use of environmental and natural resources. Environmental economics can help inform policy decisions that balance costs and benefits, and on the choice and design of policy instruments. Environmental economics also provides insights into the economic causes of environmental problems and how to remedy them through the application of policy instruments. Environmental economics mainly uses theories and methods from micro-economics, namely analysis of individual and firm decision-making and markets. However understanding the evolution of environmental quality, environment and trade, and sustainability also requires knowledge of some macro-economics, that is the study of the overall national and global economy. Economic research heavily uses statistical methods (econometrics) and so it is important for students to understand some basic statistical concepts.