Cost Benefit Analysis in Environmental Protection 2400-SU2TS31
Environmental investment expenditures reached 1.7% of GDP in Poland in the 1990s. Maintenance costs of environmental activities are high as well. In addition, protection requirements imply certain constraints which are not counted as 'environmental costs' in official statistics. Nevertheless both the constraints and out-of-pocket expenditures have become significant factors in decision-making at all stages. Therefore a question can be raised if the costs of environmental policies carried out are justified in terms of their benefits.
According to the principles of economic analysis, in order to determine whether a programme or a project is efficient, one needs to check how its potential change translates into social costs and benefits and to choose its variant which maximizes the surplus of the benefit over the cost. For environmental programmes, their benefit part can be quite cumbersome, since protection enhances goods (e.g. human health, landscape quality, or species conservation) whose values are not revealed in market transactions. Another important problem is how to discount financial flows (both at the benefit and the cost side) expected in a distant future. As a rule, environmental policies imply a long time horizon.
Despite all the methodological problems, environmental cost-benefit analyses have acquired an impressive record. Also in Poland, and especially in this University, there have been numerous empirical studies aimed at assessing the adequacy of some environmental programmes. Many of the analyses carried out in the Warsaw Ecological Economics Center (WEEC) presently compare benefits and costs of nature protection studies. They may provide empirical inputs into MA dissertations. Given the fact that most of the references are in English, and WEEC is involved in cooperation with many international institutes, the students are expected to speak English. Students will be encouraged to select a relevant environmental policy issue and to carry out a professional cost-benefit analysis for it.
Examples of MA topics
• Determine an economically optimum scale of extending the Białowieża National Park;
• Polish public fund co-financing of projects aimed at climate protection;
• International distribution of costs and benefits of the Baltic Sea clean-up;
• Assessing and financing ecosystem 'non-productive' services;
• Rationality of long derogation terms for Poland to adopt selected environmental directives;
• Using the European assistance funds in Polish environmental programmes.
Seminar meetings will cover the programme as outlined below. References are just to guide potential presenters. Students are free to select their own bibliographical sources. In the second semester our meetings will be devoted to what the students work on in order to prepare their theses. Aura items refer to my columns in this (Polish-language) monthly. Other Polish language sources are meant for Polish-speaking students. There are English language alternatives, of course.
• Why is the environmental protection a global problem? [Aura 6/07, 12/09, 1/10] [H. Folmer & H. L. Gabel (eds.), Principles of Environmental and Resource Economics, Edward Elgar, Chelthenham 2000, pp. 447-478]
• The European acid rain [T. Zylicz 1991, "The Role for Economic Incentives in International Allocation of Abatement Effort", in: R. Costanza (ed.), Ecological Economics: The Science of Management of Sustainability, Columbia University Press, New York, pp. 384-399] [Aura 6/2010]
• Baltic Sea eutrophication; interactions of phosphorus and nitrogen [A. Markowska, T. Zylicz 1999, "Costing an international public good: The case of the Baltic Sea", Ecological Economics, 1999, vol. 30, pp. 301-316] [Aura 2/08]
• Baltic Sea eutrophication cont.; international cooperation
• The ozone layer [T. Swanson, S. Johnson, Global Environmental Problems and International Environmental Agreements. The Economics of Institution Building, Edward Elgar, Cheltenham 1999, pp. 202-263] [Aura 1/12]
• Climate policy; 'greenhouse effect' [T. Swanson, S. Johnson 1999, op. cit., pp. 202-263] [Aura 12/08, 2/10, 8/11] [T. Żylicz 2009, "Goals and Principles of Environmental Policy", International Review of Environmental Policy, vol. 3, pp. 299-334]
• Climate policy; the Kyoto Protocol [Aura 1/09, 2/11][T. Żylicz 2009, op. cit., pp. 299-334] [R. Stavins' blog: http://www.robertstavinsblog.org/2018/01/07/make-chinas-announcement-national-co2-trading-system/ or later]
• Climate policy; ETS [M. Miros, T. Żylicz 2008, "Poland's perspective on EU ETS in 2005-2007", http://www.cdcclimat.com/IMG/pdf/34b-Poland_perspective_EUETS_Miros_Zylicz-2.pdf] [Aura 12/06, 2/07]
• Biodiversity [S. Polasky 2005, "Strategies to conserve biodiversity", in: H. Folmer, T. Tietenberg (eds.), The International Yearbook of Environmental and Resource Economics 2005-2006, Edward Elgar Publishing 2005, pp. 157-184] [Aura 4/11]
• Sustainability [Aura 5-7/2008, 9(D)/09, 5/11] [T. Żylicz, "Sustainability Indicators: An Economists's View", in: T. Hak, B. Moldan and A. Lyon Dahl (eds.), Sustainability Indicators. A Scientific Assessment, Island Press, Washington, DC, 2007, pp.97-105]
• Open economy problems; trade [Ecological Economics 1994, vol. 9, no. 1, Special Issue "Trade and Environment"] [Aura 12/11]
• Open economy problems; international assistance [OECD 2008, Development Aid at a Glance. Statistics by region, Paris] [Aura 11-12/10, 1/11]
• EU environmental policy [T. Żylicz 2009, op. cit., pp. 299-334] [Aura 6/07, 2/08] [Community Lisbon Programme. Technical Implementation Report 2006, European Commission, Brussels 2006 (SEC(2006) 1379)] [Aura 6/11]
• Review of potential MA topics.
Rodzaj przedmiotu
Efekty kształcenia
Students have a deepened knowledge of selected methods and analytical instruments, including socio-economic modeling.
Students have a deepened knowledge of selected institutions and – thanks to emphasizing their continuity – their historical evolution
Students are able to understand and analyze economic phenomena, as well as to evaluate tchem theoretically .
Students acquire language skills thanks to taking the course offered in English
KW01, KW02, KW03, KU01, KU02, KU03, KK01, KK02, KK03
Kryteria oceniania
MA thesis completion
Literatura
H. Folmer & H. L. Gabel (eds.), Principles of Environmental and Resource Economics, Edward Elgar, Chelthenham 2000
Więcej informacji
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