Environmental Policy


Provide an overview of the Economics of Environmental Policy, from the setting of goals to the choice of alternative policy instruments. Use the economic framework and knowledge to evaluate environmental problems and policies. Highlight the diversity in the nature and context of environmental problems. Discuss relevant facts and documents of global, EU and Portuguese environmental policy.

General characterization





Responsible teacher

Maria Clara Costa Duarte


Weekly - Available soon

Total - Available soon

Teaching language



Available soon


Recommended Textbook (available at the Library):

Perman R., Ma Y., Common M., Maddison D., McGilvray, J., Natural Resources and Environmental Economics, 4rd ed, Addison Wesley, 2011.


Available to download from course web site: Reading list, homework assignments, problem sets, class slides.

Teaching method

Classes: Lectures on course topics based on illustrative examples, review and discussion.

Instructor office hours: Individual questions on course topics and study guidance.

The course will involve a good deal of homework mostly required readings and working on handout assignments and problem sets. On average, students should expect approximately 6/8 hours of work per week outside of the classroom. Course schedule and detailed reading list on the web page.

There are regular homework assignments and class quizzes. Assignments are due at requested dates on course schedule. Students may work in a team (Max 3 elements) in assignments but cannot keep the same team for more than one assignment.

Evaluation method

The Final Exam is mandatory and must cover the entire span of the course. Its weight in the final grade can be between 30 to 70%. The remainder of the evaluation can consist of class participation, midterm exams, in class tests, etc. Overall, written in class assessment (final exam, midterm) must have a weight of at least 50%.

Course Requirements:
-    Final Exam - 40% - (min grade - 9). The final exam will cover the whole course, and will be closed book.
-    Homework assignments - 40% (10% 15% 15%)
-    Class participation 15%
-    Oral presentation- 5%

Teamwork and homework collaboration is encouraged. It goes without saying that homework deliverables are signed (copied answers will reduce grades for those doing the sharing) and for quizzes and final exam you are on your honor to execute it individually and neither receive or give aid.

Subject matter

  • Introduction:

    1.1. The environmental problem;

    1.2. Basic economic tools: Targets and policy instruments.

  • 2. Pollution Control: defining pollution targets:

    2.1. General equilibrium: Pareto Optimal Pricing rules;

    2.2. Introducing space: degree of pollutants mixing;

    2.3. Introducing time: flow and stock pollutants.

  • 3. Pollution Control: State policy instruments:

    3.1. How to evaluate policies ?;

    3.2. Cost effective pollution control instruments;

    3.3. Other pollution control instruments.

  • 4. Environmental Policy:

    4.1. Other environmental policy instruments;

    4.2. The role of corporations and individuals: It pays to be green ?.