Environmental Economics


Development of skills and abilities in the following areas:

Functioning of the economic system

Main interactions between the economic system and the environmental system

Theoretical foundations of Environmental Economics

Understanding the economic causes of today''''s major environmental problems

Integration of the economic approach in the formulation, analysis and resolution of environmental problems

Application of methodologies and economic analysis tools in addressing environmental aspects

Design, application and evaluation of environmental policy instruments and measures

Understanding the fundamentals, potential and limitations of Environmental Economics

Development of work in multidisciplinary teams in the analysis of real cases

Carrying out research and analysis of information independently

General characterization





Responsible teacher

Rui Jorge Fernandes Ferreira Santos


Weekly - 4

Total - 80

Teaching language





European Commission, 2014. Guide to Cost-Benefit Analysis of Investment Projects -Economic appraisal tool for Cohesion Policy 2014-2020, December 2014.

Field, B.C., Field, M.K., 2016. Environmental Economics: an Introduction, 7th edition, McGraw-Hill International Edition, McGraw-Hill, New York.

Tietenberg, T., Lewis, L., 2020. Natural Resource Economics: The Essentials. International Student Edition, Routledge.(paperback: ISBN 978-0-367-28034-5)

Tietenberg, T., Lewis, L., 2018. Environmental and Natural Resource Economics. International Student Edition, 11thedition, Routledge. (https://www.routledge.com/Environmental-and-Natural-Resource-Economics-11th-Edition/Tietenberg-Lewis/p/book/9781138632301)

Varian, H., 2014. Intermediate Microeconomics – A Modern Approach, 9th edition, W. W. Norton & Company, New York. ISBN 978-0393919677.

Teaching method

The teacher and student-centered approaches are used in a complementary way. The theoretical classes are based essentially onthe application of the so-called methods of transmission, i.e., didactic and formal approaches. However, in these classes is encouraged the active participation of students through the discussion of real cases and the joint reflection on the theoretical contributions,predicting time to accommodate the dynamics created in the classroom and satisfy the students'''' curiosity. In practical classes, activelearning is promoted through the discussion of topics in small groups, the development of exercises, and the analysis and discussionof study cases that motivate students'''' interest, particularly in cases where the teacher was involved (e.g. green tax reform).Students are motivated to adopt a responsible and constructive attitude, developing scientific curiosity, critical capacity, own initiativeand self-confidence.

Evaluation method

Grading along the semester will be carried out through 5 assessment components on properly spaced dates throughout the class period:
3 tests: 1st test on April 1st, 2022 – 25%; 2nd test on May 9th, 2022 – 25%; 3rd test on June 9th, 2022 – 30%;
Presentation in class of a topic selected by the teachers (10%), in a group of 3 students - the presentations will be held in practical classes between April 22nd and June 3rd, 2022 (7 classes);
Attendance and participation in classes (10%).
For approval at the UC, in the continuous assessment phase, no minimum classification is required in any of the assessment elements.

No conditions are required to obtain frequency at this course, and consequent access to the exam.

The appeal exam will cover all the theoretical-practical subjects of this course for students who have not passed or who wish to improve the classification obtained by continuous assessment (80% of the final grade).

Subject matter

1. The economy and the environment

2. Economic and financial analysis of projects

3. Introduction to microeconomics: fundamentals and concepts

4. Market failures: economic causes of environmental problems and the need for an environmental policy

5. The economic approach in environmental policy/pollution control

6. Environmental policy instruments

- Criteria for the selection and evaluation of the performance of instruments

- Instrument typologies

- Form of action, advantages and disadvantages of the instruments

- Case studies


Programs where the course is taught: