Description:

The course introduces the economic and political dimension of the most pressing current environmental issues: climate change, resource efficiency, energy transition, pollution abatement. These themes will be framed by (i) economic theory pointing out potential market failures, (ii) economic policies aimed at addressing these failures, and (iii) tools of businesses to respond to regulation set forth by economic policies but also voluntary innovative tools to address the issues ahead of regulation. In all of these frameworks, emphasis is put on innovation policies and their potential for generating solutions. These will be especially mission-oriented approach, transition management, and strategies for smart specialization for sustainable development.

Contents:

Content of lectures:

1. Introduction to environmental economics:
- the concept of externalities,
- different types of capital,
- environmental criticism of mainstream economics, various visions of sustainability (3 w)
2. Internalizing externalities:
- non-market- and market-based regulation (environmental taxes, pollution permits, command-and-control), addressing lock-ins (subsidies, infrastructure investments),
- softer tools of incentivization,
- data collection (multidimensional indicators, value estimates, environmental accounting),
- competitiveness (Porter hypothesis)
3. Business level tools:
- marginal abatement cost curve,
- green accounting,
- climate neutrality,
- circular economy flows,
- integrating sustainability into long-term strategic plans, good practice

Seminar contents:

Content of exercises:
Application of the concepts introduced in lectures: case studies, empirical analyses, externalities estimates, indicator studies. Discussion based on readings, identifying pros and cons of different approaches.

Recommended literature:

The course does not work with mandatory books. Current scientific journal articles and case studies will be used for framing the context.

Abbreviations used:

Semester:

• W ... winter semester (usually October - February)
• S ... spring semester (usually March - June)
• W,S ... both semesters

Mode of completion of the course:

• A ... Assessment (no grade is given to this course but credits are awarded. You will receive only P (Passed) of F (Failed) and number of credits)
• GA ... Graded Assessment (a grade is awarded for this course)
• EX ... Examination (a grade is awarded for this course)
• A, EX ... Examination (the award of Assessment is a precondition for taking the Examination in the given subject, a grade is awarded for this course)

Weekly load (hours per week):

• P ... lecture
• C ... seminar
• L ... laboratory
• R ... proseminar
• S ... seminar