<aside> 👉 What this post is about: These questions came from Dr. Richard Woodward (here is his website) in his Ph.D. level course Fundamentals of Resource & Environmental Economics. I think that they are the fundamental questions worth thinking about, especially as a researcher in the field of environmental and resource economics. Inspired by Dr. Woodward’s classes, I tried to write down the answers to these questions. If you have any comments and suggestions, please feel free to reach out!

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Table of contents

01. What are externalities and why do they lead to economically inefficient outcomes?

02. What are “economics institutions” and why is it critical to understand these?

03. What is the “Coase Theorem” and how does it relate to environmental economics?

04. What are transaction costs and when and why are they important?

05. What is the double-dividend and tax interaction effect debate about?

06. When are price-based regulations preferred to quantity-based approaches (Prices vs. Quantities)

07. What is a Pigouvian price?

08. How do transferable discharge permits (cap and trade programs) work?