This course examines economic approaches to valuing environmental goods and services for policy analysis and decision-making. Topics include benefit-cost analysis, revealed and stated preference methods, econometric modeling, and nonmarket valuation techniques. Students apply microeconomic theory and statistical tools to real-world environmental and natural resource problems using R software.
Athena Title
ENV VALUATION
Prerequisite
AAEC 3580-3580L
Pre or Corequisite
AAEC 4610-4610L
Semester Course Offered
Offered spring
Grading System
A - F (Traditional)
Student learning Outcomes
Students will analyze environmental and natural resource problems using economic concepts related to market efficiency, externalities, public goods, and welfare analysis.
Students will evaluate the role of environmental valuation within benefit-cost analysis and public policy decision-making, including the strengths and limitations of alternative valuation approaches.
Students will apply microeconomic theory and econometric methods to estimate the value of nonmarket environmental goods and services using revealed and stated preference techniques.
Students will compare and assess alternative nonmarket valuation methods-including hedonic pricing, travel cost models, contingent valuation, choice experiments, meta-analysis, and experimental approaches-with respect to validity, reliability, assumptions, and appropriate applications.
Students will construct and estimate empirical valuation models using real-world environmental and economic data in R statistical software.
Topical Outline
Introduction to Environmental and Resource Economics
Markets, Efficiency, and Welfare Analysis
Externalities, Public Goods, and Market Failure
Principles of Benefit-Cost and Cost-Effectiveness Analysis
Economic Foundations of Environmental Valuation
Willingness to Pay and Willingness to Accept
Introduction to Nonmarket Valuation Methods
Benefit Transfer Methods and Applications
Statistical Foundations for Environmental Valuation
Introduction to R and Econometric Analysis
Regression Analysis for Environmental Applications
Revealed Preference Methods
Hedonic Pricing Models
Travel Cost and Recreation Demand Models
Household Production Models
Data Collection and Survey Design
Stated Preference Methods
Contingent Valuation Methods
Choice Experiments and Discrete Choice Analysis
Experimental Methods in Environmental Valuation
Reliability, Validity, and Bias in Valuation Methods
