ECONOMICS AND ENVIRONMENTAL VALUATION
Academic Year 2023/2024 - Teacher: LUISA STURIALEExpected Learning Outcomes
The course aims to provide the basic knowledge for the formulation of value judgments and cost effectiveness in the civil, territorial and environmental. It will also provide the elements for the understanding the micro and macroeconomic problems in addition to the environmental economy approach.
This raises the aim to acquire the principles and methodologies of general appraisal, legal and economic evaluation of environmental goods. Will be provided elements of financial mathematics knowledge and evaluation of plans and investment projects, both from the economic and financial aspect that social and environmental.
Course Structure
The teaching methodology of the course includes lectures, laboratory and written exercises.
There will be written tests in itinere and exercises in the computer lab on the economic evaluations of the building and environmental heritage.
Required Prerequisites
Attendance of Lessons
Detailed Course Content
PRINCIPLES OF ECONOMICS
Historical evolution of economic thought: from the beginning to the net economy.
Origin of Economic and tools of economics.
MICROECONOMICS
Demand analysis: the theory of demand based on the utility, the theory of consumer behavior and indifference curves, elasticity of demand.
The theory of production. Relations between the cost curves.
Market structure: key features and short and long-term balance in the following market forms: perfect competition, monopoly, oligopoly and monopolistic competition.
Market efficiency, market failures, externalities, public intervention and environmental policy.
MACROECONOMICS
From the micro to the macro-economics. Macroeconomic problems: economic growth, inflation, employment and unemployment, budget, economics cycles, interest rates. The determination of national income in the short term. The model of aggregate demand and supply. Economic policy
ENVIRONMENTAL ECONOMICS
Economy and environment. The material balance approach. Environment and ethics. Economic growth, the increase in population and the environment. Sustainable development. The economic control. Renewable resources. Non-renewable resources
APPRAISALS
Economy, environment and estimation contexts: some preliminary references. Real estate appraisals. Estimation of assets in the public context.
LEGAL EVALUATION
Usufruct, use and habitation. Estimates relating to easements. Eminent domain.
ECONOMIC EVALUATION OF ENVIRONMENTAL GOODS
Italian legislation and estimation procedures of environmental goods. The cost-benefit analysis (ex-ante evaluation). The estimate of environmental damage (ex-post evaluation).
ECONOMIC-FINANCIAL ANALYSIS OF INVESTMENT PROJECTS
Elements of financial mathematics. The classification of investments.
Main methods of choice of investments: Net Present Value (NPV) and the Internal Rate of Return (IRR), a comparative analysis between the method of NPV and the IRR, average period of recovery, other criteria. Principles of cost-benefit analysis and cost-benefit analysis.
ENVIRONMENTAL POLICY AND INDICATORS OF SUSTAINABILITY '
The European Union's environmental policy. The measure of sustainability and evaluation processes. Methods and tools for the integration of the various components of sustainability in decision-making.
MARKETING OF CULTURAL HERITAGE
Demand for cultural heritage and marketing approaches and tools aimed at the valorisation and enjoyment of cultural heritage
Textbook Information
1. Mankiw N.G. Principles of Economics. 6th edition. — Cengage Learning, 2011 .
2. Mankiw N. Gregory. Macroeconomics. 8th edition. — Worth Publishers, 2012.
3. R. Kerry Turner, David W. Pearce, Ian Bateman. Environmental Economics: An Elementary Introduction. Berghahn Books, 1993.
Course Planning
| Subjects | Text References | |
|---|---|---|
| 1 | 1. PRINCIPLES OF ECONOMICS Historical evolution of economic theory: from the origins to the net economy. Origin of economic problems and tools of economics*. Economic system. | Book 1 |
| 2 | 2. MICROECONOMICS Demand, supply and market functioning*. The utility-based theory of demand; the theory of consumer behaviour and indifference curves; elasticity of demand | Book 1 |
| 3 | 3. MICROECONOMICS* The production theory: the production function. Production costs. Short-run and long-run cost functions. Returns to scale. | Book 1 |
| 4 | 4. MICROECONOMICS Market structure and firm behaviour (economic profit maximisation) *: fundamental characteristics and short- and long-run equilibrium in the following market forms: perfect competition, monopoly, oligopoly and monopolistic competition. | Book 1 |
| 5 | 5. MACROECONOMICS From micro to macroeconomics. Keynes. Macroeconomic issues: economic growth, inflation, employment and unemployment, government budget, business cycles, interest rates. GDP and economic growth*. Aggregate supply and demand. Economic policy*. | Book 2 |
| 6 | 6. ENVIRONMENTAL ECONOMICS* Economics and the environment. The material balance approach. Environment and ethics. Economic growth, population growth and the environment. Sustainable development. The economic control of the environment. Renewable resources. Non-renewable resources. | Book 3 |
| 7 | 7. GENERAL ESTATE* Economics, environment and estimation contexts: some preliminary references. Estimation of assets in the private context. Estimation of assets in the public context. | Material on STUDIUM and/or TEAMS provided by professor |
| 8 | 8. LEGAL ESTATE Usufruct, use and habitation. Estimates of easements over land*. Expropriation for public utility*. | Material on STUDIUM and/or TEAMS provided by professor |
| 9 | 9. ECONOMIC EVALUATION OF ENVIRONMENTAL GOODS* Italian legislation and procedures for estimating environmental goods. The cost-benefit analysis (ex-ante estimates). The estimation of environmental damage (ex-post evaluation). | Book 3 |
| 10 | 10. ECONOMIC-FINANCIAL EVALUATION OF INVESTMENT PROJECTS* Elements of financial mathematics. The classification of investments. Main investment selection methods: Net Present Value (NPV); Internal Rate of Return (IRR); comparative analysis between NPV and IRR methods; Average Payback Period, WACC. Hints on other criteria (AMC). | Material on STUDIUM and/or TEAMS provided by professor |
| 11 | 11.ENVIRONMENTAL POLICY AND SUSTAINABILITY INDICATORS European Union environmental policy. The measurement of sustainability and assessment processes*. Methods and tools for integrating the different components of sustainability into decision-making processes. | Material on STUDIUM and/or TEAMS provided by professor |
| 12 | 12. MARKETING OF CULTURAL HERITAGEDemand for cultural heritage and marketing approaches and tools aimed at the valorisation and enjoyment of cultural heritage | Material on STUDIUM and/or TEAMS provided by professor |
Learning Assessment
Learning Assessment Procedures
During the course of the lectures, an in itinere written test on micro- and macroeconomics topics (reasoned closed questions and solving exercises) is scheduled, the assessment of which will be taken into account in the formulation of the final grade. The final written test will cover the remainder of the syllabus (closed and/or open-ended questions and solving exercises in financial mathematics) and may also include an oral interview. The evaluation of the paper on a specific estimation procedure (developed in the computer laboratory) will also be considered in the examination grade.
Students who do not take or do not pass the prescribed tests may also take the examination by means of a single written test (but it will always be necessary to have completed the paper on the estimative procedure in the laboratory).
The assessment of the examination is based on the following criteria: property of economic-estimative language, level of knowledge of the required topics, ability to connect the various topics of the teaching programme, ability to solve the simple cases proposed on the basis of the topics and examples given during the lectures.
Reservation for the examination call is compulsory and must be made exclusively via the internet, through the student portal, within the stipulated period.
Information for students with disabilities and/or DSA
As a guarantee of equal opportunities and in compliance with the laws in force, interested students may request a personal interview in order to plan any compensatory and/or dispensatory measures, based on the teaching objectives and specific needs.
(It is also possible to contact the Department's CInAP (Centre for Active and Participatory Integration - Services for Disabilities and/or SLDs) reference teacher).
Examples of frequently asked questions and / or exercises
- Market functioning and profit maximisation in the different market forms studied.
- Production function and business costs, relationships between cost curves.
- GDP, indicators of growth and economic development, explanation of business cycles.
- The steps of estimation.
- Estimation procedures in the private context: classification, characteristics and applications.
- Economic valuation of environmental assets: estimation procedures, characteristics and fields of application.
- Define the legal institution of easements, illustrate the classification and indicate the compensation formula.
- Theoretical principles and models of Environmental Economics. Classification of public and private assets. Environmental resources and spatial planning: issues, economic evaluation and management aspects.
- Cost/Revenue and Cost/Benefit Analysis; differences, contexts of application and related issues.
- Investment selection criteria and their application.
- Types of sustainability indicators and their fields of application.
- Financial mathematics exercise.