- Department of Economics

Environmental Economics

The Department of Economics and International Development at the University of Bath has a strong international reputation in Environmental Economics and related research.

Environmental Economics involves the use of economic methods in the evaluation of environmental issues, including natural resource exploitation. Issues such as the definition of subsidies for renewable energy, “getting the prices right” in the setting of environmental taxes, the efficient use of natural resources and the establishment of an effective regime for climate change mitigation are all key issues that have interested researchers in Bath.

Key Staff

The Department has a number of research students working on areas of environmental economics and sustainable development. Current students include:

Recent completed PhDs have included:

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Key areas of interest

GREEN ACCOUNTING

The University of Bath has been at the forefront of efforts within Europe to integrate environmental issues into standard national accounts of the environment. Key staff who have worked in this area are Anil Markandya, Alistair Hunt, Nick Dale and Tim Taylor.

Recent projects for the European Commission have included the Greensense project, where standard welfare-based green accounting techniques were linked with work on sustainability standards to allow for a better inclusion of sustainability issues within decisionmaking. This built on work in the Green Accounting Research Projects (GARP, GARPII), which developed welfare-based measures of environmental degradation that could be integrated in satellite accounts.

The ongoing SENSOR project will aim to build on the GREENSENSE project to develop measures of the external costs of rural land use in Europe.

Publications

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VALUATION OF ENVIRONMENTAL AND HEALTH DAMAGES

In addition to the work on green accounting, the University of Bath has been working on extending the knowledge base in terms of the valuation of environmental and health damages. Damages from energy and transport have been a particular area of focus, with the University of Bath being a key player in the ExternE series of projects for the European Commission.

Recent work has focussed on valuing changes in mortality risk (NewExt). Ongoing work looks at issues of energy security and cultural heritage (ExternEPol) and more general issues related to health valuation (DIEM).

As part of the European Commission’s Framework Programme 6, the University of Bath are involved in a number of projects that value damages to the environment. These include the following:

Publications

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NATURAL RESOURCES

Work on natural resource issues has been led by Adrian Winnett and Anil Markandya. The estimation of estimates of natural capital has been a key area of interest.

The SAUNER project looks at the sustainable use of natural resources. The aim of the project was to apply the economic theories of efficient and sustainable resource depletion to predicted patterns of natural resource depletion and investment in substitutes, in order to form a judgement as to whether or not these patterns are likely to be economically sustainable.

Publications - to follow

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SUSTAINABLE AGRICULTURE

Sustainable agriculture is an area of increasing interest in academic circles, with the GM food debate and issues relating to sustainable rural development raising the profile of this issue nationally. Lucy O’Shea, Anil Markandya and Tim Taylor have worked on issues relating to sustainable agriculture.

In one recent project, the potential impact of nitrate fertilizer tax was analysed.

Another project, SUSTOOLS aimed to develop cost-benefit analysis and multicriteria analysis for policy options for nitrate fertilizer use. The University of Bath was involved in the estimation of costs and benefits of different policy options, including the use of manure and more stringent standards on the application of fertilizers.

Tim Taylor is working on the EC FP6 project SENSOR (www.sensor-ip.org). SENSOR aims to develop a sustainability impact assessment tool for assessing multifunctional land use in Europe. As part of this, an assessment of the external costs of agriculture will be made.

Publications

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CLIMATE CHANGE

Climate change is a major issue in world affairs and a major threat to sustainable development. Anil Markandya, Tim Taylor and Alistair Hunt have been involved in work in this area.

Anil Markandya is involved in activities organised by the Intergovernmental Panel on Climate Change and was a coordinating lead author of the Costing Methodologies chapter of Climate Change 2001:Mitigation. Tim Taylor was a contributing author to this chapter.

Alistair Hunt and Tim Taylor have also been involved in work on the Kyoto Protocol, looking at issues relating to trade and the implementation of the flexibility mechanisms.

The main research work has focussed on the costing of climate change impacts, adaptation and mitigation options.

Publications