Environmental Economics

Climate change and environmentally friendly action are gaining in importance. Politicians and companies need to include environmental and sustainability aspects in their decisions. In addition to scientific findings, the economic aspects of climate and environmental protection need to be taken into account. Economic fundamentals also matter for environmental reporting. Key concepts of Environmental Economics include the valuation of externalities and public goods and their consideration in market design.

  • Climate strategies of companies, institutions and the public sector must take economic aspects into account: How to achieve climate goals efficiently? What are the distributional impacts? What are the costs of adaptation? How will business models be affected by climate change and new regulations?
  • Cost-benefit analyses of environmental decisions need to respect economic constraints. Which measure is the most appropriate to achieve a reduction in emissions? What macro structure can optimally promote renewable energy?
  • Public goods and externalities: What are the external costs of different energy generation technologies? What is the value of clean air? What are the costs caused by noise?
  • Mobility: What are the economic effects of traffic calming in inner cities? What is the economically optimal parking supply for a city? Which modes of transport generate external costs?
  • Behavioural aspects: How can nudges be used to promote more environmentally friendly behaviour?

 

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