Learning Outcomes

TopThis module provides a comprehensive coverage of environmental economics and has been structured on the premise that course participants have little background in economics. The main objective of the module is to illustrate how the study of mainstream economics needs to be reoriented in the light of the following premises: the natural environment is the core of any economy and economic sustainability cannot be attained without environmental sustainability. The module is designed to enable participants to understand the environmental economic perspective and to be able to critique policy and practice. The module has a constructive alignment between outcomes, activities and assessment tasks set at the graduate level. The students undertake independent critical analysis of set readings in environmental economics concepts, paradigms and methodologies in practice, and must debate these issues in on-line forums and class forums and critique ideas from other students. Students are also required to work in groups requiring the ability to argue their case and synthesise views in creative solutions to problems

Prerequisites

TopThis is a postgraduate module
Undergraduate Degree is a prerequisite
Prior knowledge of economics is NOT required

Teaching Modes

TopLectures - Seminars - Tutorials
Group Work

Synopsis

TopCLASSES
Lectures Tuesdays 6:00 PM to 9:00 PM

Required and Recommended texts and/or materials
Dodo J Thampapillai (Lecturer and module convenor) is presently working on a revised and updated edition of his text: Environmental Economics: Concepts, Methods and Policies, Oxford University Press, Melbourne. The 2nd Edition was co-authored by the Late Professor Jack Sinden and was published in 2013. The copyrights have reverted to Dodo and hence he will be posting relevant chapters of his current effort as notes on IVLE. The usual caveat on copyright requirements will apply to these notes. These notes will serve as the prescribed text

Other suggested texts on Environmental Economics

Tietenberg, T., Environmental and Natural Resource Economics, Harper Collins, New York, (2004 edition).

Turner K., Pearce D. and Bateman I., Environmental Economics, Harvester Wheatsheaf, Hertfordshire 1994.

Sinden, J.A. and Thampapillai, D.J, Introduction to Benefit-Cost Analysis, Longman Australia, Melbourne 1995.
The list of topics and reading guides are given below:

1. THE ENVIRONMENT AND THE ECONOMY
1.1 The Environment in the History of Economic Thought
1.2 Laws of Thermodynamics and the Environment

2. THE MARKET AND THE ENVIRONMENT
2.1 The Market Model and Property Rights
2.2 Environmental Goods and Market Failure

3. THE ENVIRONMENT IN EXTENSIONS OF MICROECONOMIC ANALYSIS
3.1 Consumer Demand and the WTP-WTA Discrepancies
3.2 Elasticity of Environmental Friendliness
3.3 Revisions to Production Function Analysis

4. THE VALUATION OF ENVIRONMENTAL GOODS AND SERVICES
4.1 Methods based on Demand Concepts
4.2 Methods based on Supply (Opportunity Cost) Concepts

5. MICROECONOMIC POLICY INSTRUMENTS
5.1 Taxes, Standards and Charges
5.2 Emissions Trading
5.3 Property Rights
5.4 Other Incentives and Disincentives

6. MACROECONOMICS AND THE ENVIRONMENT
6.1 The Basis for Environmental Accounting
6.2 An Aggregate Approach to Environmental Capital
6.3 An Introductory Model of Environmental Macroeconomics
6.4 Macroeconomic Policies for the Environment

Syllabus

Top

PP5269 ENVIRONMENTAL ECONOMICS AND POLICY

AY 2018-19 Semester-1
Lecturer: Professor Dodo J. Thampapillai (spptj@nus.edu.sg)
Students in this module should read this outline carefully at the start of semester. It
contains important information about the unit. If anything in it is unclear, please consult
one of the teaching staff in the unit.

ABOUT THIS MODULE
This module provides a comprehensive coverage of environmental economics and has been
structured on the premise that course participants have little background in economics.
The main objective of the module is to illustrate how the study of mainstream economics
needs to be reoriented in the light of the following premises: the natural environment is the
core of any economy and economic sustainability cannot be attained without environmental
sustainability. The module is designed to enable participants to understand the
environmental economic perspective and to be able to critique policy and practice. The
module has a constructive alignment between outcomes, activities and assessment tasks set
at the graduate level. The students undertake independent critical analysis of set readings in
environmental economics concepts, paradigms and methodologies in practice, and must
debate these issues in on-line forums and class forums and critique ideas from other
students. Students are also required to work in groups requiring the ability to argue their
case and synthesise views in creative solutions to problems.

CLASSES
Lectures Tuesdays 6:00 PM to 9:00 PM

REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS

Dodo J Thampapillai (Lecturer and module convenor) is presently working on a revised
and updated edition of his text: Environmental Economics: Concepts, Methods and
Policies, Oxford University Press, Melbourne. The 2nd Edition was co-authored by the
Late Professor Jack Sinden and was published in 2013. The copyrights have reverted to
Dodo and hence he will be posting relevant chapters of his current effort as notes on
IVLE. The usual caveat on copyright requirements will apply to these notes. These notes
will serve as the prescribed text
Other suggested texts on Environmental Economics
Tietenberg, T., Environmental and Natural Resource Economics, Harper Collins, New
York, (2004 edition).
Turner K., Pearce D. and Bateman I., Environmental Economics, Harvester Wheatsheaf,
Hertfordshire 1994.
Sinden, J.A. and Thampapillai, D.J, Introduction to Benefit-Cost Analysis, Longman
Australia, Melbourne 1995.
The list of topics and reading guides are given below:
1. THE ENVIRONMENT AND THE ECONOMY
1.1 The Environment in the History of Economic Thought
1.2 Laws of Thermodynamics and the Environment
2. THE MARKET AND THE ENVIRONMENT
2.1 The Market Model and Property Rights
2.2 Environmental Goods and Market Failure
3. THE ENVIRONMENT IN EXTENSIONS OF MICROECONOMIC ANALYSIS
3.1 Consumer Demand and the WTP-WTA Discrepancies
3.2 Elasticity of Environmental Friendliness
3.3 Revisions to Production Function Analysis
4. THE VALUATION OF ENVIRONMENTAL GOODS AND SERVICES
4.1 Methods based on Demand Concepts
4.2 Methods based on Supply (Opportunity Cost) Concepts
5. MICROECONOMIC POLICY INSTRUMENTS
5.1 Taxes, Standards and Charges
5.2 Emissions Trading
5.3 Property Rights
5.4 Other Incentives and Disincentives
6. MACROECONOMICS AND THE ENVIRONMENT
6.1 The Basis for Environmental Accounting
6.2 An Aggregate Approach to Environmental Capital
6.3 An Introductory Model of Environmental Macroeconomics
6.4 Macroeconomic Policies for the Environment

TENTATIVE SCHEDULE OF DATES

Date	Topic	Basic Reading
14-Aug-18	Environment and the Economy	Chapter-1
21-Aug-18	Laws of Thermodynamics and the Economy	Chapter-2
28-Aug-18	Markets - Demand and Supply and Costs	Chapter-3
4-Sep-18	Market Failure, Property Rights	Chapter-4
11-Sep-18	Extensions of Market Analyses	Chapters 5-6
18 Sep-18	Valuation of Environmental Goods and Services
25-Sep-18	Mid-Semester Break	Chapter 16
2-Oct-18	Valuation of Environmental Goods and Services	Chapter 16
09-Oct-18	Macroeconomics and the Environment	Chapter 10
16-Oct-18	Macroeconomics and the Environment	Chapter-10
23-Oct-18	Environmental Macroeconomic Modelling	Chapters 11-12
30-Oct-18	Environmental Macroeconomic Modelling	Chapter-12
6-Nov-18	Group Assignment Analyses
13-Nov-18	Class Presentations + POLICY

ASSESSMENT

Grades in this course will be determined by two individual assignments, an individual report stemming from group work, contributions to two discussion forums and a final examination. The distribution of grades is as follows.

Component	Marks (%)	Deadline
Assignment-1	20	30 August 2018
Assignment-2	20	11 October 2018
Group Work + Individual Report	20	08 November 2018
Take-Home Examination	40

Assignment - 1 Due Date: 30 August 2018

Based on your reading of Chapter 2 in your main text, write an essay on the topic “An Equilibrium Between the Environment and the Economy is an Elusive Concept” (not exceeding 1500 words – Three A-4 pages type written and double spaced).

Assignment - 2 Due Date: 11 October 2018

Assemble as much information as you can about the Cross Island Line (CIL) in Singapore. It would be useful if you could take some time and visit the Central Catchment Nature Reserve (CCNR) through which the CIL traverses. One impact of the CIL is the likely damage to the ground water resource system. (Please the following case study from LKY-SPP: http://lkyspp.nus.edu.sg/wp-content/uploads/2014/04/The- Proposed-Cross-Island-Line-in-Singapore.pdf

Provide a succinct description of three methods that could be utilized towards placing a monetary value of protecting the ground water resource system (not exceeding 1500 words – Three A-4 pages type written and double spaced).

Please structure your response as follows:

A succinct description of the CCNR and CIL (10%)
The three methods (60%); For each method (20%), the grades will be distributed in terms of: method description (10%), reasons for choice (5%) and difficulties with the method (5%)
Your thoughts on other methods that could have been considered and those that must be excluded (20%)
Your thoughts on whether or not environmental assets such as the CCNR should be valued (10%)

Group Project and Presentation

This will be a guided class exercise in which the class will be divided into groups and each group will work on macroeconomic data pertaining to a specific country

You will be shown how this data could be used in the formulation of a simple Keynesian Model of Income Determination.

You will also be guided towards estimating some proxies for environmental degradation at the macroeconomic level and shown how these proxies could be internalized into the Keynesian Model.

You will be then guided towards analyzing this model and evaluating policies pertaining to income, employment and the environment. You will be required to check for the various policies adopted by this country during the recent past.

Each group will make a seminar presentation in class on 05 November 2018

Each person will then submit a report on the basis of their analyses no later than 15 November 2018.

PLAGIARISM

You must read the University's practices and procedures on plagiarism. Penalties range from failure in the module to expulsion from the university.

Assessment

TopASSESSMENT

Grades in this course will be determined by two individual assignments, an individual report stemming from group work, contributions to two discussion forums and a final examination. The distribution of grades is as follows.

Component	Marks (%)	Deadline
Assignment-1	10	30 August 2018
Assignment-2	10	11 October 2018
Group Work + Individual Report	20	08 November 2018
Take-Home Examination	60

Assignment - 1 Due Date: 30 August 2018
Based on your reading of Chapter 2 in your main text, write an essay on the topic “An Equilibrium Between the Environment and the Economy is an Elusive Concept” (not exceeding 1500 words – Three A-4 pages type written and double spaced).

Assignment - 2 Due Date: 11 October 2018
Assemble as much information as you can about the Cross Island Line (CIL) in Singapore. It would be useful if you could take some time and visit the Central Catchment Nature Reserve (CCNR) through which the CIL traverses. One impact of the CIL is the likely damage to the ground water resource system. (Please the following case study from LKY-SPP: http://lkyspp.nus.edu.sg/wp-content/uploads/2014/04/The-Proposed-Cross-Island-Line-in-Singapore.pdf

Provide a succinct description of three methods that could be utilized towards placing a monetary value of protecting the ground water resource system (not exceeding 1500 words – Three A-4 pages type written and double spaced).

Please structure your response as follows:
1. A succinct description of the CCNR and CIL (10%)
2. The three methods (60%); For each method (20%), the grades will be distributed in terms of: method description (10%), reasons for choice (5%) and difficulties with the method (5%)
3. Your thoughts on other methods that could have been considered and those that must be excluded (20%)
4. Your thoughts on whether or not environmental assets such as the CCNR should be valued (10%)

Group Project and Presentation

This will be a guided class exercise in which the class will be divided into groups and each group will work on macroeconomic data pertaining to a specific country

You will be shown how this data could be used in the formulation of a simple Keynesian Model of Income Determination.

You will also be guided towards estimating some proxies for environmental degradation at the macroeconomic level and shown how these proxies could be internalized into the Keynesian Model.

You will be then guided towards analyzing this model and evaluating policies pertaining to income, employment and the environment. You will be required to check for the various policies adopted by this country during the recent past.

Each group will make a seminar presentation in class on 05 November 2018

Each person will then submit a report on the basis of their analyses no later than 15 November 2018.

Plagiarism
You must read the University's practices and procedures on plagiarism. Penalties range from failure in the module to expulsion from the university.