Economics of Sustainable Development

The aim of this course is both to show students how basic concepts and tools of economics can be applied to state operational propositions about sustainable development at a regional or global scale, and also to actually make students apply a series of simple tools to such practical issues of sustainability. One of the core concepts and toolbox employed is that of cost-benefit analysis (CBA). Typical to assess the economic relevance of an investment, this method is also the foundation of the economics of sustainable development to assess the sustainability of various development options and paths. Since it implies assigning economic values to non-economic goods, such as the value of species and resources now and in the future, it raises questions of how do economists and markets assign such values. This is the contingency valuation method (CVM). We review a series of cases to understand how these tools are applied and students are asked to apply these tools in group projects.