Syllabus
People
Lecturer:
Dr. Milan Ščasný, milan.scasny@czp.cuni.cz; Charles University, Environment Center (José Martího 2/407, Prague 6) & Institute of Economic Studies, Fac Soc Sci
Teaching Assistants:
Diana Kmeťková, PhD candidate, diana.kmetkova@fsv.cuni.cz
Structure of the course 1. Intro to the Course & Welfare measurement
Consumer demand theory: Marshallian vs Hicksian demand; Welfare Measures
February 16 2. Revealed preferences
Hedonic pricing (theory, hedonic price function, implicit price, econometrics)
Travel Cost Model (recreation demand, model typology, zonal vs. individual TCM, RUM; data and econometric issues)
February 23 3. Ex post Modeling of Economic-Envi Relationship: Decompositions & Environmental Kuznets Curve [Ščasný/Kmetkova]
Decomposition analysis – Index Decomposition, LMDI, interpretation
EKC hypothesis, theoretical underpinnings, shortcomings, econometrics
March 2 4. Stated preferences
Theoretical validity; WTA vs. WTP; Incentive compatibility, elicitation formats; Random Utility Model; Non-parametric vs parametric estimation of choice data
Designing choice experiment: choice task, alternatives, attributes, their levels; experimental designs
March 9 5. Discrete choice experiments
Econometric modeling & preference heterogeneity (CL, MXL, Latent Class Logit, Hybrid Choice models)
Articles to be presented by the students
March 16 6. Health risk valuation
(i) Morbidity: household production function, Cost-Of-Illness, WTP
(ii) Premature mortality: QALY; LE; Value of a Statistical Life; VOLY
(iii) Health Impact Assessment, Environmental & Health Externalities
March 23 7. Climate Change Economics
Social Cost of Carbon; Integrated Assessment Models; Social Discount Rate; Equity
Articles to be presented by the students
March 30
April 13
Dean’s break (Easter holidays)
April 6 8. Environmental Regulation
Why regulate the market? External costs: definition, optimum
Market-based Instruments: taxes, emission trading
April 20 9. European Green Deal, Fit for 55 [Ščasný/Máca]
European legislation; How to model the impacts of EGD and Fit for 55
April 27 10. Regulatory Impact Analysis [Ščasný/Rečka]
What modeling approaches we can use: Energy System Modelling; Input-Output analysis; Environmentally-extended IOA; Partial-equilibrium, General-Equilibrium; Macro-econometric; Integrated Assessment Models – pros and cons
May 4
May 11
Materials
Visit Moodle at: https://dl1.cuni.cz/course/view.php?id=14924
Annotation
The course features a series of lectures on environmental economics, partly covering also energy economics, health economics and welfare measurement, all linked to environmental problems. The course provides students with the framework to understand the theory and methods of environmental economics, consumer behaviour and non-market valuation in particular.