Intro to Environmental Economics
Universidad de La Salle Summer Academy, Summer 2026
This 9-day intensive course introduces students to the core concepts of environmental economics, including externalities, public goods, valuation methods, and policy instruments.
For every module, we follow the following structure:
- Discussion based on homework (videos or podcasts)
- Lecture
- Practice Handout
- In-class Problem Set
Note: on both Fridays, there will be an exam.
The grade breakdown is:
- Problem Sets: 40%
- Exam 1: 25%
- Exam 2: 25%
- Participation: 10%
Click on each day to expand the materials.
Day 1 - Review of Market Theory and Welfare Economics
- Market Theory
- Demand and its determinants
- Elasticity of Demand
- Supply and its determinants
- Market Equilibrium
- Welfare Economics
- Classification of Goods
- Listen to: Food Banks
- Listen to: Climate Change is a Victim of Tragedy of The Commons
Day 2 - Public Goods
- Discussion based on homework
- Private Demand Derivation (since we didn't have time on Day 1)
- Public goods
- Public goods game
- Derive demand for public gods
- Finish Problem Set 1
Day 3 - Externalities, Common Resources & Coase Theorem
- For those who didn't submit Problem Set 1, hand it in at the beginning of class
- Discussion based on homework
- Derivation of Private Good Demand
- Derivation of Public Good Demand
- Watch: Put a Value on Nature TED Talk
- Listen to: Elinor Ostrom Checks In
- OPTIONAL: Listen to: Sustainable Development
Day 4 - Extenralities
- Discussion based on homework
- Externalties and Common Pool Resources Lecture
- Video: Coase Theorem
- Externality game
- Common pool resources
- The Tragey of the Commons
- Fisheries Game
- Fishing game
- Finish Handout 3 and complete Problem Set 3
- Listen to: Sustainable Development
- Complete takehome exam
Day 5 - Market-Based Environmental Policies: Command-and-Control Policies & Taxes/Prices; Behavioral Economics
- I will collect Exam 1 at the beginning of class
- Discussion about environmental policies in Bogotá: Pico y Placa, Water Rationing, and Ciclovia
- Lecture: Command-and-Control Policies
- Handout 4
- Problem Set 4
- Read: License Plate Bans
Day 6 - Market-Based Environmental Policies: Taxes/Prices; Behavioral Economics
- Discussion about Pico y Paca
- I will collect Problem Set 4 beginning of class
- Lecture: Taxes and Charges
- Handouts 5A and 5B
- Problem Set 5
- Watch: A climate solution where all sides can win
- Listen to: Saving birds with economics
Day 7 - Market-Based Environmenal Policies: Cap and Trade; Environmental Justice
- Discussion about the TED talk and podcast
- I will collect Problem Set 5 beginning of class
- Lecture: Cap-and-Trade
- Handout 6
- Problem Set 6
- Environmental Justice
- Watch: Environmental Justice - Lala Ma's Video
- Listen one of these 2:
- Can the World Cup in Qatar Really Be Carbon Neutral?
- Carbon Offsets
Day 8 - Intro to Benefit-Cost Analysis; Valuation, Revealed Preferences (Travel Cost Method)
- I will collect Problem Set 6 at the beginning of class
- Discussion about carbon offsets and best ways to decrease greenhouse gases in Bogotá and the world
- Notebook LM video on Aguilar's EJ paper
- Intro to Benefit-Cost Analysis Video: Valuation: Intro to Benefit-Cost Analysis
- Valuation: Classes of Values Video: Valuation: Classes of Values
- Revealed Preferences (Travel Cost Method) Video: Revealed Preferences: Travel Cost Method
- Read article (click on link at the end of page) for the exam: EJ in Colombia
- Complete Exam 2
Day 9 - Revealed Preferences (Hedonic Pricing Methods) and Stated Preferences (Contingent Valuation, Choice Experiments) and Exam 2
