This course explores the sources of environmental problems in market economies and policy options for addressing these problems. Topics include the choice among alternative environmental policy instruments (e.g., taxes, standards, tradable permits), valuation of non-marketed commodities (e.g., environmental amenities, biodiversity), and environmental policy making under uncertainty. Applications include global climate change and green tax reform. Students are encouraged to take this course as part of a two-course sequence that includes Economics 245.

Prerequisites: 202, 203, 204, 270, and 271; or equivalent with consent of the instructor.