Economics of sustainable development


This course explores the problems created by asymmetric information, economic growth and trade in the design of environmental policies. Implications of asymmetric informati on (adverse selection, monitoring and moral hazard) public perception of environmental risks lobbies and NGOs on environmental regulations are presented Growth models incorporating e nvironmental sustainability are discussed. Trade models allow us to analyze the environmental problems created by economic globalization. Coalition theory is applied to analyze international environmental agreements.


  • Environmental regulation design
    • Information asymmetry and regulations
    • Monitoring and the en forcement of regulations
    • Limited liability and moral hazard
    • Risk perception and regulations
    • Lobbies and non profit o rganizations
  • Growth and the environment
    • Limited resources and the Hartwick rule
    • Pollution and steady growth
    • Green growth & directe d technical change
  • International environmental problems
    • International trade and the environment
    • Non strategic and strategic trade
    • North South trade & the environment
    • Trade and natural resources
    • International environmental agreements


  • Acemoglu (2009), Introduction to modern economic growth, Princeton University.
  • Aghion, P & P. Howitt (1998), Endogenous growth theory, MIT Press.
  • Copeland, B. & S. Taylor (2003), Trade and the Environment: Theory and Evidence, Princeton University Press.
  • JJ. Laffont & D. Martimort (2001), The Theory of Incentives: The Principal Agent Model, Princeton University Press.
  • R. Perman, Y. Ma, J. McGilvray & MS. Common (2003), Natural resource and environmental economics, (third ed.), Pearson Education, Harlow