Environmental and resource economics is a sub-field of economics that applies tools of the economic theory and econometrics to such issues as climate change, air pollution, sustainable forest management, water use, pollution, land use, fisheries, recycling, and hazardous wastes. It has become a critically important sub-field due to growing environmental problems of the twenty-first century.

After completing this course, successful students will be able to understand, explain and critically assess:

- interactions between the economy and the environment
- the concepts of market failure and property rights
- environmental policy instruments
- revealed and stated preference techniques
- advantages and limitations of cost-benefit analysis
- conceptual framework and theoretical basis for environmental valuation
- central concepts and theories in natural resource modelling
- modelling of natural resources (e.g. fisheries, forest, wildlife).