Learning Objectives

With the completion of this course, the students will:

1. Understand the economic approaches, methods and tools to address environmental issues
2. Have an understanding of the linkages between the economy and the environment
3. Familiarize with methods and tools adopted for environmental valuation and be able to diagnose the environmental issues from an economic prospective
4. Identify and analyse the environmental consequences of developmental projects

Group A: Environmental Economics (23 hrs)

Unit 1: Introduction to Environmental Economics (7 hrs)

1.1 Concept, scope and origin of environmental economics, Inter-linkages between economy and environment

1.2 Market economy: Notion of market, Perfectly competitive market and resource allocation, Pareto criterion of efficiency

1.3 Market failure (Lack of property rights, Externalities)

1.4 Type of goods (Private, club, common and public goods)

1.5 Asymmetric information

1.6 Contemporary issues in environmental economics (Climate change, Sustainable development, Poverty)

1.7 Alternative measures of economic welfare and Green accounting

Unit 2: Economics of Natural Resources and Pollution (6 hrs)

2.1 Types of resources: Renewable and Non-renewable

2.2 Theories of natural resource use: Elementary capital theory, Models for renewable resources with logistic growth and maximum sustainable yield, Models for non-renewable resources

2.3 Maximum principle of optimal control theory, Current value, Hamiltonian and Transversality conditions

2.4 Example of commercial forestry economics

Unit 3: Ecosystem Services and Natural Capital (10 hrs)

3.1 Introduction to ecosystem services, Services and goods, Types of ecosystem services

3.2 Valuation of environmental goods and services: Benefit Cost Analysis (BCA) (Meaning, Components and Steps), Market vs non-market valuation, Methods for valuing environmental costs and benefits (Contingent Valuation method (CVM)-Willingness to pay and willingness to accept), Travel Cost Method (TCM), Hedonic Pricing Method)

3.3 Payment for ecosystem services: Theoretical perspectives, Opportunities, Approaches and Deals

Group B: Environmental Management Tools (22 hrs)

Unit 1: Environmental Assessment (5 hrs)

1.1 Introduction to environmental assessment, Assessment at different levels (IEE, EIA and SEA)

1.2 EIA methods: Impact identification in EIA (Interaction matrix and Simple checklist methods). Potential positive and negative environmental impacts (Biological, Physical, Social, Economic and Cultural impacts)

1.3 SEA: Methodology, Implementation, National and international practices, Linkage with sustainable development

Unit 2: Impact Prediction and Analysis Techniques (7 hrs)

2.1 Techniques for impact prediction: Simple techniques, Indices and Experimental methods, Mass balance approach

2.2 Models and Simulations: Mathematical models (Streeter-Phelps model, Gaussian plume dispersion model), Computer simulations (Airmode, screen and other USEPA approved simulation models), Habitat based models, Physical modelling approach, Simple noise attenuation models, Simple specific source type based models, Decision focused checklists

2.3 Impact analysis techniques: GIS (map overlays), Expert systems, Risk assessment, Cumulative impact assessment (Principles, Steps, Synoptic and Strategic approaches), Contingency plans for unpredicted impacts

2.4 Public consultation programme, Quality and review of EIA reports, Environmental management plan, Auditing systems and processes

Unit 3: Environmental Management Systems (10 hrs)

3.1 General concept: History of EMS and QMS, Fundamental principles of the ISO system (Approach based on ISO 14004:2010), Benefits of ISO standards, Stages of EMS Implementation, Requirements of EMS for official recognition /certification (Briefs on major elements of ISO 14001:2015)

3.2 Emerging ISO 14000 series standards: Concepts of eco-design (14006:2011), Eco-labeling and eco marketing on the basis of ISO 14020:2000

3.3 Fundamental approach of QMS (ISO 9001:2015): General framework

3.4 Certification and auditing: Stages of ISO 14001 certification, Role of NBSM for certification of ISO 9001 and 14001 in Nepal, Guidelines for quality and/environmental management system auditing (ISO 19011:2011) (General approach /elements only)

3.5 Application of EMS (Waste audits: Thematic approach and Energy audits in industries – a checklist approach), Risk Assessment Techniques (General framework on the basis of IEC/ISO 31010:2009, Quantitative and qualitative variables), Life cycle assessment (Principles, General framework on the basis of ISO 14040:2006)

References

1. ADB and ICIMOD. (2006). Environmental assessment of Nepal: emerging issues and challenges. Asian Development Bank and International Centre for Integrated Mountain Development, Kathmandu.
2. Barry, F., & Martha, K.F. (2012). Environmental economics. McGraw Hill Education, East Windsor.
3. Butlin, J.A. (1981). The economics of environmental and natural resources policy. West-view Press, Colorado.
4. Canter, L.W. (1999). Environmental Impact Assessment. CRC Press LLC.
5. Collard, D. (1989). Economics, growth and sustainable environments. St. Matin’s Press, New York.
6. Constanza, R. (1991). Ecological economics: the science and management of sustainability. Colombia University Press, US.
7. Fisher, A.C.T. (1981). Resource and environmental economics. Cambridge University Press, New York.
8. ISO. (2004). International Standard ISO 14001, Reference no. 14001:2004 (E). International Organization for Standardization, Geneva.
9. Khadka, R.B. (1997). EIA training manual for professionals and managers. Asian Regional Environmental Assessment Program, IUCN, Kathmandu, Nepal.
10. Khadka, R.B., Gorzula, S., Joshi, A.R., Guragain, S., & Mathema, A.B. (2013). Environmental impact assessment: process, methods and practices in South Asia (Bangladesh, Bhutan, India and Nepal). 1st ed. SchEMS and IED/RCBI, New Baneshwor.
11. Kolko, J. (1988). Reconstructing the world economy. Pantheon, New York.
12. MoE. (2010). National Adaptation Program of Action (NAPA) to climate change. Ministry of Environment, GoN, Kathmandu.
13. NPC and IUCN. (1993). National environmental impact assessment guidelines. National Conservation Strategy Implementation Project, Kathmandu.
14. Pearce, D.W. (1972). Environmental economics. New ed. Longman, London.
15. UNEP. (2008). Payments for ecosystem services getting started: a primer. UNEP, Nairobi.
16. WCED. (1987). Our common future. World Commission on Environment and Development, Oxford University Press, New York.
17. WeiB, P., & Bentlage, J. (2006). Environmental management systems and certification. The Baltic University Press, Nina Tryckeri, Uppsala.
18. World Bank. (1991). Environmental assessment sourcebook: guidelines for environmental assessment of energy and industry projects, Vol.1II. Environment Department, The World Bank.