Economia applicata all'ingegneria

This course, after providing synthetic elements of micro- and macroeconomics, aims to introduce the basic principles of environmental economics and circular economy approaches to support a sustainable economic model geared toward ecological transition. The best-known methodologies used for the economic valuation of ecosystem services provided by nature and green and blue infrastructure in rural and urban settings and the basic concepts of ecosystem flow measurement and environmental accounting will be explored. Elements of financial mathematics and economic evaluation of investments will be provided.

 The knowledge gained will be useful in integrating the contribution of natural capital and the value of ecosystem services into land-use and urban planning and development processes aimed at natural resource use efficiency, climate change adaptation, resilience and inclusion. 

The course content is aligned with the Sustainable Development Goals of the United Nations 2030 Agenda, particularly Goals 11 (Sustainable Cities and Communities), 12 (Responsible Consumption and Production), 13 (Combating Climate Change), 14 (Life Under Water) and 15 (Life on Earth).

1. PRINCIPLES OF ECONOMICS

Origin of economic problems and tools of economics*. Economic system.

2. MICROECONOMICS

Demand, supply and market functioning*. Utility-based theory of demand; theory of consumer behavior and indifference curves; elasticity of demand.

3. MICROECONOMICS*

The theory of production: the production function. Costs of production. Short-run and long-run cost functions. 

4. MICROECONOMICS

Market structure and firm behavior (economic profit maximization)*: basic characteristics and short- and long-run equilibrium in the following market forms: perfect competition, monopoly, oligopoly and monopolistic competition.

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*. 

6.  ENVIRONMENTAL ECONOMICS

Economics and the environment. Anthropogenic impact and crisis of ecosystems. Economic growth, population growth and the environment. The material balance approach. The Brundtland Report and the concept of “sustainable development ”*. The economic control of the environment. The renewable resources*. Nonrenewable resources*. Ecosystem services: characteristics and functions in different spatial settings*.

7. ENVIRONMENTAL EVALUATION.

Economics, environment and estimative contexts. Classification of assets according to the excludability principle and the rivalry principle*. Estimation of assets in the private context. Direct and indirect estimation procedures*.

Estimation of assets in the public context*. Total Economic Value, externalities and public goods*. Criteria and methods of economic valuation of environmental assets and ecosystem services*.

8. ENVIRONMENTAL POLICY AND SUSTAINABILITY INDICATORS.

European Union environmental policy. The measurement of sustainability and assessment processes*. The United Nations 2030 Agenda and the Sustainable Development Goals*.  Methods and tools for integrating the different components of sustainability of decision-making processes.

9. ECONOMIC-FINANCIAL EVALUATION OF INVESTMENT PROJECTS*.

Elements of financial mathematics. The classification of investments. 

Main methods of investment selection: the Net Present Value (NPV); the Internal Rate of Return (IRR); comparative analysis between NPV and IRR methods; Average Payback Period; outlines of other criteria. Principles of cost-benefit analysis and cost-revenue analysis.

*Minimum indispensable topics for the passage of the exam.

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.

During the lecture period, there is a written in itinere test on micro and macroeconomics topics (reasoned closed-ended questions and solving exercises), the evaluation of which will be considered in the formulation of the final grade. The final written test will be on the remaining part of the program (closed and/or open-ended questions and solving exercises in financial mathematics...) and may also include an oral interview.

Students who do not take or fail the scheduled tests may also take the exam through a single written test.

The assessment of the exam is based on the following criteria: property of economic-estimative language, level of knowledge of the required topics, ability to connect the different topics of the teaching program, ability to solve the simple cases proposed on the basis of the topics and examples given during the lectures. It is essential to do the financial mathematics exercises for passing the exam.

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

- Market operation and profit maximization in the different market forms studied.

- Production function and business costs, relationships between cost curves.

- GDP, indicators of growth and economic development, explanation of economic cycles.   

- Economic valuation of environmental assets: estimation procedures, characteristics and fields of application.

- Theoretical principles and models of Environmental Economics. Classification of public and private assets. Environmental resources and land use planning: issues, economic evaluation and management aspects.

- Types of sustainability indicators and their fields of application.

- Types and functions of ecosystem services in different spatial settings.

- Investment selection criteria and their application.

- Financial mathematics exercise.