Relevance
With the information acquired in this course, graduates should be able to operate as/cooperate with:
- researchers that develop environmental-economic concepts for scientific sustainability questions
- consultants that carry out cost-benefits analysis for practical issues
- water managers that base their decisions on multiple criteria including costs and benefits
Learning objectives
After completing the course, you should be able to handle research and management concepts in water, environmental and ecological economics in internships and jobs, at a basic MSc-level, in particular
- implications of economic theory for environmental problems;
- costs and benefits of water management; including the valuation of environmental goods and services
- economic concepts like natural capital, ecosystem services,
- application to real-world cases
|
|
The course focusses on Cost-benefit analysis (CBA) as a tool in the ex-ante assessment of policy options to address water and environmental related problems. CBA provides policy makers an overview of the effects, risks and uncertainties of policy measures and the resulting costs and benefits to society as a whole. By quantifying and, whenever useful, monetarizing advantages and disadvantages CBA provides insight into the effects on social welfare, including on aspects like nature, landscape, community safety, cultural heritage or social cohesion. By discounting, CBA is able also to compare different effects over time.
CBA is widely used in International Development Banks, and in many countries CBA is embedded in the public decision laws. For example, in the Netherlands a CBA is obligatory for new large investment projects, such as transport or water infrastructure. Most countries and international agencies also have standardized methodologies for carrying out CBAs.
CBA is scientifically based upon Welfare Economics, which was developed to analyse and justify modern state intervention in the late 19th century, when public goods like railroads were being developed. Welfare economics is based on certain theorems about human behaviour and about aggregating individual utility. Those theorems and their implications for CBA are also criticized by some scholars. For instance, the CBA pays little attention to effects in income distribution, and irreversible effects on ecosystems are difficult to include.
In subsequent lectures, you will learn about valuation methods for environmental impacts that can be applied in those CBA’s. Those methods link physical effect monitoring with economic impact measuring. The course will address environmental aspects of various types of water management, including flood protection, drought prevention and water quality improvement.
Instructional modes
- Lecture
- Self-study
- Guest lectures (by several teachers from governmental agencies)
|
 |
|
|
|
|
Exam consists of an essay (CBA), counting for 100%
|
|
- obligatory for TWM students
- elective for students from other master students
|
|