Schedule and Readings

Optional readings are in italics. Each section is approximately 1 day of class.

Introduction to environmental economics

  • KO Chapters 1 and 4
  • Fullerton, Don, and Robert Stavins. “How economists see the environment.” Nature 395, no. 6701 (1998): 433-434.
  • Banzhaf, H. Spencer. “The environmental turn in natural resource economics: John Krutilla and “Conservation Reconsidered”." Journal of the History of Economic Thought 41, no. 1 (2019): 27-46.

Market failures: Public goods and externalities

  • KO Chapter 5

Market failures: Public goods and externalities

  • KO Chapter 5

Coase theorem

Policy: Standards

  • KO Chapters 8 and 9

Taxes and Subsidies

  • KO Chapters 8 and 9

Tradable permits

Tradable permits and policy comparisons

  • KO Chapters 8 and 9, 10

In class emissions trading game (with prizes!)

Distortions and second-best policies

  • Holland, Stephen P., Jonathan E. Hughes, and Christopher R. Knittel. “Greenhouse gas reductions under low carbon fuel standards?.” American Economic Journal: Economic Policy 1, no. 1 (2009): 106-46.
  • Cardoso, Diego S. “Optimal carbon taxation under oligopoly: An application to commercial aviation.” (2020).

Policy under uncertainty

  • KO Chapters 8
  • Weitzman, Martin L. “Prices vs. quantities.” The Review of Economic Studies 41, no. 4 (1974): 477-491.


R and the tidyverse, regression review

We will be using RStudio Cloud for computing.

R and the tidyverse, regression review

R and the tidyverse, regression review

Non-market valuation: Hedonics

Non-market valuation: Travel cost

Non-market valuation: Contingent valuation

Climate change science

Climate change impacts: agriculture

The integrated assessment of climate change

Pollution and health

Big data: Using satellites to measure the environment

Environmental justice



The Economics of the Clean Air Act and Clean Water Act



  • Keiser, David A., and Joseph S. Shapiro. “Consequences of the Clean Water Act and the demand for water quality.” The Quarterly Journal of Economics 134, no. 1 (2019): 349-396.

Perverse incentives and incomplete regulation

Intertemporal leakage

Incomplete monitoring

Green accounting