Unit rationale, description and aim

Environmental Economics investigates environmental and natural resource issues such as pollution, sustainability, resource depletion, climate change, environmental damage, poverty and economic development through the lens of economic theory. Students will gain an understanding of cost-benefit analysis and carbon accounting at a foundational level. Students will also be introduced to environmental policy analysis and will learn to engage in informed policy discussions. 

Environmental economics is crucial for understanding, assessing and addressing real-world issues related to climate change, economic growth, and sustainable use and management of natural resources. It is deeply intertwined with other units in social sciences and humanities, such as Environmental Humanities, contributing to a comprehensive understanding of the economic aspects of environmental issues.

This unit equips students with diverse knowledge and skills, including critical thinking, analytical skills, policy research skills and communicating ideas using various media. Students will learn to apply fundamental economic theories to environmental issues and will gain an understanding of how market-based approaches like emissions trading schemes and pollution permits work to address environmental problems.

This unit aims to prepare students for a rewarding career in government, private sector, and non-government organisations, where they can make significant contributions to addressing environmental issues and challenges. 

2026 10

Campus offering

No unit offerings are currently available for this unit.

Prerequisites

Nil

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

Develop an understanding of environmental issues u...

Learning Outcome 01

Develop an understanding of environmental issues using economic theory
Relevant Graduate Capabilities: GC1, GC3, GC5, GC9, GC10

Explain environmental problems using an economic f...

Learning Outcome 02

Explain environmental problems using an economic framework
Relevant Graduate Capabilities: GC1, GC2, GC3, GC7, GC8, GC11

Explain foundational principles of economic valuat...

Learning Outcome 03

Explain foundational principles of economic valuation and carbon accounting
Relevant Graduate Capabilities: GC1, GC2, GC3, GC7, GC8, GC10, GC11

Discuss environmental policy choices relating to p...

Learning Outcome 04

Discuss environmental policy choices relating to pollution, market failures, common resources and sustainable development
Relevant Graduate Capabilities: GC1, GC2, GC7, GC8, GC9, GC10, GC11

Content

Topics will include:

  • Benefits and costs, supply and demand.
  • Markets and economic efficiency.
  • Property rights, externalities and market failures
  • Common resources and tragedy of commons.
  • The economics of natural resources: renewables
  • The economics of natural resources: non-renewables.
  • Economics of pollution and waste management.
  • Introduction to Carbon Accounting and its methodologies.
  • The costs and benefits of environmental policies.
  • The circular economy and sustainability in organisations
  • Regulation and incentive approaches to deal with pollution (emissions trading and taxation)
  • Connections between poverty, environment, and economic growth.
  • Carbon ‘net zero’ and change in economic structure.
  • Biodiversity and development. 

Assessment strategy and rationale

Assessment has been designed to cover a variety of tasks, support discipline standards, and enable differentiated levels of achievement. These assessment items are chosen to gradually achieve learning outcomes in the unit.

Assessment Task 1 allows students to demonstrate achievement against Learning Outcome 1 and 3 by introducing students to fundamental economic concepts and theories applied to environmental issues.

Assessment Task 2 expands Learning Outcome 1 and contributes to developing Learning Outcome 2: students are required to explain in individual and group settings an environmental problem of their choice using an appropriate economic framework.

Assessment Task 3 (final exam) tests achievement of all learning outcomes via the application of knowledge to authentic ‘real-world’ situations. For example, students may be required to apply market models to environmental issues, identify patterns in data, comment on cost-benefit analyses, or identify potential issues with carbon accounting (Learning Outcomes 1-3). Students will also be required to evaluate domestic, international or global environmental policy choices using foundational economic concepts and theories from the unit (Learning Outcome 4). The final exam will be conducted as a viva voce or by written responses.

Collectively, these assessment tasks are designed to provide a holistic evaluation of students’ learning outcomes.

Overview of assessments

Assessment Task 1: Skill Development Tasks The p...

Assessment Task 1: Skill Development Tasks

The purpose of the task is to provide an opportunity for students to apply relevant environmental economics concepts and models to real-world scenarios and build relevant skills on the basic level on an on-going basis. These tasks may include practical hands on activities including case studies, quizzes or problem sets

Weighting

20%

Learning Outcomes LO1, LO3
Graduate Capabilities GC1, GC2, GC3, GC5, GC7, GC8, GC9, GC10, GC11

Assessment Task 2: Research Essay The aim of the...

Assessment Task 2: Research Essay

The aim of the essay is to encourage students to develop and demonstrate critical thinking skills through gathering real-world economic data and literature sources. Students will use these to perform an economic analysis of a particular environmental issue and communicate the findings at the basic fundamental level required by the discipline.

Weighting

40%

Learning Outcomes LO1, LO2
Graduate Capabilities GC1, GC2, GC3, GC5, GC7, GC8, GC9, GC10, GC11

Assessment Task 3: Final exam / Policy evaluation...

Assessment Task 3: Final exam / Policy evaluation /policy brief

The Final exam provides the opportunity for students to demonstrate what they have learned across the entire semester and test achievement of all learning outcomes. Students will be asked to apply what they have learned in the subject to real-world scenarios. This may include, for example, discussing the real-world data on various types of pollution and economic growth, interpreting results of cost-benefit analysis, recognising omissions in carbon accounting, and applying market frameworks to real-world environmental situations. Students may be required to evaluate domestic, international, or global environmental policy choices using foundational economic concepts and theories and explain potential issues. 

Weighting

40%

Learning Outcomes LO1, LO2, LO3, LO4
Graduate Capabilities GC1, GC2, GC3, GC5, GC7, GC8, GC9, GC10, GC11

Learning and teaching strategy and rationale

This unit embraces a constructivist approach to learning where students are encouraged to acquire, assimilate and apply economic terms and concepts to real-world issues. Lectures will provide relevant economic theory, and content and tutorials will use scaffolded activities carefully designed by the lecturer to assist the development of literacy and numeracy skills in economics. Students will be encouraged to engage in a variety of tasks including visual, aural, reading and hands-on skills-based activities such as reading and analysing contemporary economic issues, essay writing, discussion and problem-solving. This promotes analysis, synthesis and evaluation of class content. Tutorial participation also provides an opportunity to improve group cohesion and collaboration.

Representative texts and references

Representative texts and references

Buchholz, W., and Rübbelke, D. (2019). Foundations of Environmental Economics. Springer. (Springer Texts in Business and Economics) ISBN: 978-3-030-16267-2.

De Rus, G. (2021). Introduction to Cost-Benefit Analysis: Looking for Reasonable Shortcuts. 2nd Edition. Edward Elgar Publishing. ISBN 978 1 83910 374 2.

Fisher, A. (2020). Lecture Notes on Resource and Environmental Economics. Springer. ISBN: 978-3-030-48957-1.

Glavas, D. (ed.). (2023). Valuation and Sustainability: A Guide to Include Environmental, Social and Governance Data in Business Valuation. Springer.

Harris, J. M., and Roach, B. (2022). Environmental and Natural Resource Economics: A Contemporary Approach. 5th edition. Routledge. ISBN 9780367531386

Kanazawa, M. (2021). Natural Resources and the Environment: Economics, Law, Politics, and Institutions. Routledge, 2021. ISBN 978-0-367-07761-7.

Schoenmaker, D., and Schramade, W. (2019). Principles of Sustainable Finance. Oxford University Press, ISBN 9780198826606

Spellman F.R. (2015) Economics for Environmental Professionals. CRC Press, ISBN: 1482257998, 9781482257991, EISBN: 9781482258011

Tietenberg, T.H. and Lewis, L. (2018) Environmental and Natural Resource Economics: International Student Edition, Routledge ISBN: 9781138632301


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