Course syllabus for Environmental policy instruments

Course syllabus adopted 2025-02-13 by Head of Programme (or corresponding).

Overview

  • Swedish nameMiljöpolitiska styrmedel
  • CodeUNA016
  • Credits7.5 Credits
  • OwnerMPTSE
  • Education cycleSecond-cycle
  • Main field of studyEnergy and Environmental Systems and Technology, Industrial Engineering and Management, Chemical Engineering, Mechanical Engineering
  • DepartmentSPACE, EARTH AND ENVIRONMENT
  • GradingTH - Pass with distinction (5), Pass with credit (4), Pass (3), Fail

Course round 1

  • Teaching language English
  • Application code 28124
  • Open for exchange studentsYes

Credit distribution

0105 Examination 6 c
Grading: TH		 6 c
0205 Examples class 1.5 c
Grading: UG		 1.5 c

In programmes

Examiner

  • Thomas Sterner

Eligibility

General entry requirements for Master's level (second cycle)
Applicants enrolled in a programme at Chalmers where the course is included in the study programme are exempted from fulfilling the requirements above.

Specific entry requirements

English 6 (or by other approved means with the equivalent proficiency level)
Applicants enrolled in a programme at Chalmers where the course is included in the study programme are exempted from fulfilling the requirements above.

Course specific prerequisites

Basic knowledge in environmental science or environmental engineering. Preferably some prior knowledge of economics.

Aim

This course is intended to give sufficient insight in applied environmental economics for the students to contribute to a discussion in e.g. companies or regulatory authorities, concerning the design of policies in the area of environmental and natural resource management. In addition, the course aims to provide practical training in this type of discussion and advocacy in Swedish as well as international contexts.

Learning outcomes (after completion of the course the student should be able to)

  • Describe and analyze how the market mechanism works, through supply and demand functions that interact to form prices. This is necessary background to be able to analyze the market failures that underlie environmental problems.
  • describe and analyze how environmental policy instruments work;
  • describe the influence of a certain policy instrument both on incentives for technical change and on the distribution of costs in connection to environmental improvement;
  • in a professional role, relate to the political game around policies and be prepared for pressure that different firms or other polluters can use to accomplish their agenda concerning policy choices.
  • evaluate how policies should be selected and designed so as to meet not only the criteria of efficiency but also of equity, political feasibility and other criteria.
  • Relate one's own perspective on fairness to that of decision makers in other parts of the world with regards to issues of distribution and feasibilty and how this can be combined with an economic analysis of efficiency. The student can problematize around how to combine efficiency and feasibilty in the design of e.g. international climate agreements. 
  • Use AI tools to enhance learning processes and for simpler tasks apply text and image generating AI as a versatile project support tool, as well as being able to reflect on the risks associated with the use of technology.

Content

The course is divided into five main sections. 

  1. Introduction to Economics: This section covers the basic concepts of economics necessary to understand how the economy works, including demand, supply, market equilibrium, the price mechanism, and consumer surplus. 
  2. The need for environmental policies: This section deals with the necessity of environmental policies in situations where the market fails or does not work effectively, especially in the case of major environmental challenges. 
  3. Overview of policy instruments: This section provides an overview of various environmental policy instruments, such as taxes, cap and trade, regulations, and legal or informational tools, and highlights their similarities and differences. 
  4. Selection and design of policy instruments: The course then explores how to select and design policy instruments for specific situations, with multiple perspectives, such as principles of equitable global responsibility sharing emphasized in international climate negotiations. This is further enriched through exchanges with students from different parts of the world. 
  5. Policy instruments in practice: The course concludes with practical examples of environmental policy-making across a wide range of topics, including road transport, industrial pollution, climate change, chemicals and biodiversity conservation.

Organisation

We strive to use engaging and modern teaching methods in this course. We use case studies and exercises without abandoning traditional material such as articles and a textbook. Much of the lecture material is "flipped", i.e., the students watch short clips as a complement to reading before coming to class, and the understanding of the covered material will then be deepened in the classroom through the use of discussions, group work, quizzes, exercises and other pedagogical tools. A portable computer or a mobile phone are required to do the quizzes in class. We also aim to collaborate internationally and for instance do an exercise in collaboration with students from developing countries (or emerging market economies) about the climate change negotiations.



The case study is a project in lobbying. It is compulsory to participate in the project and and the presentation.

Literature

The main course literature is the book Sterner, T., & Coria, J. (2012). Policy Instruments for the Management of Natural Resources and Ecos. Policy Instruments for Environmental and Natural Resourse Management (Second Edi, Vol. 53, Issue 9) Resources for the Future, Routledge Taylor& Francis Group and a set of additional articles.
In addition to this book, we also use new relevant research findings to keep students up to date on developments in the subject. The course literature is available in our learning platform. In addition to the book and research articles, most of the course's concepts are presented in videos (or podcasts) in the online material accessed via the course's learning platform.

Examination including compulsory elements

The examination consists of a case study (lobbying project) and a written exam. The case study may give maximum 20 points. The exam is composed of several questions and may give maximum 80 points. Thus, the maximum for the case study and the exam is 100 points in total. 

In order to get grade:

3 you must have at least 50 points in total,

4 you must have at least 65 points in total,

5 you must have at least 80 points in total.


The course examiner may assess individual students in other ways than what is stated above if there are special reasons for doing so, for example if a student has a decision from Chalmers about disability study support.