ENVIRONMENTAL ECONOMICS AND PUBLIC POLICY
2017/2018, Semester 1
Lee Kuan Yew School of Public Policy (Lee Kuan Yew School Of Public Policy)
Modular Credits: 4
The module is designed for graduate students to enable them 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.
Elective Module for LKY-SPP Students
Mandatory Module for MEM Students
Environment and the Economy
Laws of Thermodynamics and the Economy
Markets - Demand and Supply and Costs
Market Failure, Property Rights
Extensions of Market Analyses
Extensions of Market Analyses
Macroeconomics and the Environment
Macroeconomics and the Environment
Environmental Macroeconomic Modelling
Valuation of Environmental Goods and Services
Group Assignment Analyses
ABOUT THIS MODULE
Consideration of environmental sustainability is a vital part of policy making. This module provides a comprehensive coverage of sustainable development and is structured on the following premises:
The natural environment is the core of any economy and economic sustainability cannot be attained without environmental sustainability; and
Sustainable development requires the maintenance of a steady stock of environmental capital.
The module is designed to enable graduates to work in multidisciplinary teams, to understand the sustainable development perspective and to be able to critique policy and practice. The module has a constructive alignment between outcomes, activities, and assessment tasks set at a postgraduate level.
The module integrates key concepts of economics and science that define environmental sustainability. These include: entropy law of thermodynamics, assimilative capacity of ecological systems and economic equilibrium.
1. THE ENVIRONMENTAL CAPITAL AND THE ECONOMY
1.1 The Environmental Capital in the History of Economic Thought
1.2 Laws of Thermodynamics and the Environmental Capital
2. THE MARKET AND THE ENVIRONMENTAL CAPITAL
2.1 The Market Model and Property Rights
2.2 Environmental Goods and Market Failure
3. THE EXTENSIONS OF MICROECONOMIC ANALYSIS
3.1 Management of Nonrenewable Resources
3.2 Management of Renewable Resources
3.3 Management of Nonrenewable Resources with Renewable Services
4. MACROECONOMICS AND THE ENVIRONMENTAL CAPITAL
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
5. THE VALUATION OF ENVIRONMENTAL GOODS AND SERVICES
4.1 Methods based on Demand Concepts
4.2 Methods based on Supply (Opportunity Cost) Concepts
6. POLICY ANALYSIS
6.1 Microeconomic Policies
6.4 Macroeconomic Policies
Assignment-3 deals with Environmental Macroeconomics
This will be a guided exercise where data from sources such as the World Bank, Asian Development Bank and the IMF will drawn to test some concepts and methods covered in class
Grades in this course will be determined by
three assignments, and an examination.
The distribution of grades is as follows.
31 August 2017
02 October 2017
09 November 2017
Assignment - 1 Due Date: 31 AUGUST 2017
Submit a critical review (
– Three A-4 pages type written and double spaced) of Chapter-2 in the main text (Thampapillai and Sinden 2013).
Please structure your response as follows:
1. A succinct description of the ideas contained in the Chapter (20%)
2. Your points of agreement with justification (30%)
3. Your points of disagreement with justification (30%)
4. Overall assessment of the paper (20%)
For assignments 2 and 3 each student will be assigned to a group and each group will be assigned a country. We will also try as far as possible to match your preferences with respect to the assignment of the country. Although you are permitted to work in groups, Assignment-2 will be an individual effort. Assignment-3 has a group presentation followed by an individual report
Assignment - 2 Due Date: 28 September 2017
Assignment - 2 Due Date: 02 October 2017
Consider the problem of public defecation in developing countries. You will find a wide array of writings on this subject. Of the two readings below, the first takes a religious approach. The second, being an economics centered approach, attempts to highlight the beneficial impact by recourse to econometric analyses. (You need not master econometrics for this assignment)
Your task is as follows:
In your own view, what are the drivers of public defecation? (You may want to read a bit more – but, given the constraints of time, do not go beyond 4 readings.
Attempt to explain the problem using the tools of public goods and externalities.
Illustrate how you could incorporate the narrative offered in the two readings above into the exposition you offered in (2).
Suggest some concrete policies to resolve the problem
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 deliver a presentation not exceeding 20 minutes to illustrate the highlights of their results on 09 November 2017. Each person will then submit a report on the basis of their analyses no later than
16 November 2017.
You must read the University's practices and procedures on plagiarism. Penalties range from failure in the module to expulsion from the university.