Description
This course aims to apply microeconomic theory to value environmental and natural resources. Individuals used to consider only market goods since it is possible to determine their prices and the demand for them. However, decision-makers also need information about the level of scarcity for natural resources, biodiversity and ecosystem services. Therefore, economic valuation is an essential tool for including environmental benefits and costs in the cost-benefit analysis. This class will provide necessary tools to evaluate non-market goods and to show explicitly the level of scarcity for environmental goods and services as well as how costly can be their depredation. This course will apply statistical and econometric techniques previously learn to estimate non-market values which are the widely accepted means of measuring the economic value of environmental and natural resources. Students will learn to estimate demand function and willingness to pay (WTP) for environmental goods and services.