Environmental Economics and Markets

FOR15 Environmental Economics and Markets

Spring 2020

  • Topics

    This course in environmental economics if focused on the needs of the firm. It includes how economic tools can be used to assess environmental priorities, and in consequence how the firm can navigate these and is affected. It also places in context how the firm's markets are affected by environmental problems and environmental policies, directly and indirectly.

    This course uses techniques from economics to analyse environmental policy questions. A more advanced course more specialized towards international problems is given at the master level (ENE423 The Economics and Business of Sustainability and Climate Risk (in 2019: Economics of the Environment and Climate)).

  • Learning outcome


    Upon successful completion, the student

    • Can identify environmental problems and how they affect the firm and its markets directly and through policies
    • Is able to identify, through the firm's investment analysis, the role of environmental challenges and policy instruments


    Upon successful completion, the student

    • Can use the idea of market failure and how it is corrected, to focus on the firm in its self-interest
    • Is able to analyse the role of a broader societal interest in the firm, its owners and other stakeholders
    • is able to analyse how the firm and its stakeholders are likely to engage in dialogue on policy
    • Knows the basic methodological challenges and methods used in prioritizing environmental problems and protection
    • Understand the institutions and political economy of environmental issues, including the basic notions of property rights and liability

    General Competence:

    Upon successful completion, the student is able

    • to use these concepts and techniques in an applied setting and to communicate insights and results;
    • to analyse an environmental management issue in the light stakeholder interests, institutions, and their evolution.

  • Teaching

    The course is about twenty lectures (90 minutes each), a home assignment and a home exam (term paper).

  • Recommended prerequisites

    Some facility in economic analysis is advisable, but it will also be taught. 

  • Credit reduction due to overlap

    This course uses techniques from economics to analyse environmental policy questions, a more advanced course more specialized towards international problems is give at the master level, ENE 426. 

  • Requirements for course approval

    Home assignment must be approved.

  • Assessment

    Assessment for this course will not be changed spring 2020.

    Individual term paper. The students will work on the term paper for 20 days, starting in Week 13.

  • Grading Scale

    A - F

  • Literature

    Will be provided, parts of Kolstad's book Environmental Economics.


ECTS Credits
Teaching language

Spring. First time Spring 2020.

Course responsible

Professor Gunnar S. Eskeland, Department of Business and Management Science.