Sandbox course

Environmental and Sustainable Development Economics

6 ECTS, exam assessment, autumn semester, 2 nd year business administration bachelor students

Course aims

To provide knowledge in sustainable development economics as the main contemporary global development paradigm. Teach the valuation of economic efficiency of sustainable development measures. Provide skills for independent work with professional literature. Provide systematic knowledge in environmental and natural resource economics. Teach how to solve practical problems of environment management and utilisation of natural resources.

Learning outcomes

Upon completion of the course, the students: 1) have systematic knowledge in the environmental and sustainable development economics; 2) are familiar with the relationships between the economic system and the environmental system and understand the limitations arising from the environment on economy; 3) are able to analyse and solve environmental economics problems faced by enterprises; 4) recognise the sustainable development paradigm and its economic aspects; 5) know the main sustainable growth theories and economic possibilities of using them; 6) know the main sustainable development related environmental regulations and international agreements; 7) are able to independently work with professional literature; are able to upgrade their knowledge and independently seek solutions to the problems that might arise.

Brief description of the course

Environment as a system. Definition of the environment and main regularities: laws of thermodynamics, ecological systems, substance turnover, trophic pyramid. Man and the environment: biological and cultural evolution, economic formations. Human impact on the environment. Types of capital, nature capital. Growth limits, environmental factor in future scenarios. Classification of natural and environmental resources. Renewable and non-renewable resources, reserves and flows. Environmental evaluation and evaluation methods. Environmental damage, its economic and legal aspects. Market failure. Externalities and their introduction. Theory of marginal utility. Marginal production costs and marginal social costs. Marginal cost of pollution abatement and marginal cost of damage caused by pollution. Effective pollution. Methods for regulating pollution and practices in EU. Pollution tax. Classification and consumption of environmental goods. Financial and social cost-benefit analysis. Enterprise and the environment. Ecology and ecological management. Global environmental problems. Water and air purification processes. Waste handling. Energy. Economics of renewable natural resources at the example of fish population. Economic policies of sustainable development: effect of economic system growth on sustainability, definition and measurement of sustainable development; local and international sustainable development policies. Sustainability and economic growth: demographic and ecological aspects and the respective strategies. The relationship between environment protection and sustainability, government role. Sustainability growth and the Green Golden Rule: a growth model with environmental assets. International coordination of policies: reduction of greenhouse gas emissions and energy efficiency. International climate agreements. International quota trading, carbon taxes. Industrial competitiveness and environmental regulations.