Environmental Economics I: Theory (5 cr)

Environmental Economics
Master’s students Research Master's students
University of Helsinki - Environmental Economics
Lassi Ahlvik
Period 2
Contact teaching
Viikki campus

In case of conflicting information consider the Sisu/Courses/Moodle pages the primary source of information.

The course provides a rigorous survey on the classical theory of static externality. The course starts with efficiency and distributional effects of environmental policies. The second part of the course analyzes international trade and the differences between consumption- and production-based environmental policies. The third part then focuses on the choice between climate policy instruments under imperfect competition, voluntary emission reductions, linking environmental regulations between countries and instrument choice under uncertainty. Throughout the course we will link the theoretical models to real-world examples and empirical studies.

  • Completion method: contact teaching
  • Schedule: can be found in Course Page and Sisu
  • Study materials: can be found in Moodle
    • For some courses, it is enough to register in Sisu and you can access directly the Moodle area, please note, however, that it may take up to two hours after registration to enter the Moodle area.
    • Log in with your UH username to be able to use all the features of the course workspace
    • More tips for enrolling in Moodle can be found here

Please register for the course in the UH Sisu with your UH username, further instructions can be found here.

Aalto University Students
  • Code: no equivalent code
  • Target groups: MSc (not suitable for PhD students)
  • Credit points: 5
  • Credit transfer: apply for inclusion in Sisu
Hanken Students
  • Code: 26071
  • Target groups: MSc (not suitable for PhD students)
  • Credit points: 5
  • Credit transfer: apply for substitution in Sisu
University of Helsinki Students
  • Code: AGERE-E01

  • Target groups: MSc students (not suitable for PhD students)

  • Credit points: 5

FDPE Students Students
  • Not suitable for PhD students

After completing the course, students are able to derive rigorously the key results of static externality and the optimal use of policy instruments. The students will understand various incentive margins that affect behavior of firms under market-based environmental regulation and how policies affects them. The students will learn the tools to set-up and solve static optimization problems, learn how to solve them numerically and become familiar with empirical analyses of environmental problems.