A.A. 2025/2026
Environmental Law and Economics
(9 credits, Corso di Laurea Magistrale in European Studies LM-90)
prof. Anna Rita Germani
Teaching period: first semester - Classes will begin on September 25, 2025
Office hours
Thursday h. 11.00 - 13..00
Class timetable
THURSDAY 14.00 - 17.00 (classroom 8)
FRIDAY 15.00 - 18.00 (classroom 7)
Objectives of the course
This course introduces students to the law and economics of the environment exploring how legal frameworks and economic principles can be used together to design and evaluate environmental policies. Emphasis is placed on real-world applications, including the legal and economic tools employed in climate change mitigation, pollution control, land use planning, and natural resource management. The contemporary and challenging environmental issues give rise to a broad spectrum of dilemmas, such as i) to what extent can reliance on neoclassical economics market theory and technological innovation be justified, particularly when such reliance involves the depletion of limited natural resources? and ii) to what extent, and under what circumstances, should state intervention be prioritized? A variety of regulatory tools will be discussed from traditional command-and-control measures to Pigouvian taxation, from tradable emission permits to behavioural approaches like nudging policies. A central question that will be analyzed during the course concerns the optimal mix of regulatory and market-based instruments to achieve ecological sustainability without undermining economic development.
Course outline
The course will be structured as follows:
Part 1: KEY CONCEPTS IN ENVIRONMENTAL LAW AND ECONOMICS
i. Environmental Harm and Efficiency
ii. Property Rights Approach to Environmental Law
iii. Environmental Standard Setting
iv. Principles of Environmental Law and Environmental Economics
v. Pricing Environmental Harm
vi. Market-Based Instruments
vii. Liability Rules
viii. Environmental Regulation
ix. Environmental Crime
x. Insurance for Environmental Damage
xi. Compensation for Environmental Damage
xii. The Role of Environmental Law in Developing Countries
PART 2: CASE STUDY PRESENTATIONS BY STUDENTS
In the second part of the course, students will choose a case study to present to the class. The purpose of the case study assignments is to encourage students to put into practice the theoretical concepts explored in Part 1, developing critical thinking on the effectiveness of the different instruments studied and engaging with the legal, economic, and policy complexities of real-world environmental issues.
Main textbooks:
- Faure, Michael G. and Partain, Roy A. (2019). Environmental Law and Economics: Theory and Practice, Cambridge University Press.
- Laurent, Éloi (2022). The New Environmental Economics. Sustainability and Justice, Polity Press: Cambridge, UK - selected chapters and paragraphs.
During classes, some readings on specific topics will also be suggested (which will be an integral part of the program), such as:
- Stern N., J.E. Stiglitz (2023). Climate change and growth, Industrial and Corporate Change, 32(2); 277-303, https://academic.oup.com/icc/article/32/2/277/7043810
- Foxon T.J, J. Köhler, J. Michie, C. Oughton (2013). Towards a new complexity economics for sustainability, Cambridge Journal of Economics, 37(1); 187–208, https://doi.org/10.1093/cje/bes057
- Fullerton D., R. Stavins (1998). How economists see the environment. Nature, 395(6701); https://www.nature.com/articles/26606
Further teaching material will be available in Classroom.
Classroom
Students are required to enroll in the course on Classroom, where all study materials are distributed and all organizational announcements are posted. The course code is 4qk3aeve. To access it, you must log in with your @uniroma1.it account
Exam format
The final exam consists of a written test and an oral test.
The written test consists of 4 questions that require graphical analysis. The time available is 40 minutes. For the evaluation of the written test, each question can be scored up to a maximum of 8 points. The oral test usually takes place once the written test has been completed.
For attending students: The exam can be structured, at choice, into two intermediate tests or a single end-of-course test. The intermediate tests are written and require the elaboration of an academic essay. In the event of failure in one of the two intermediate tests, the exam must be taken in full at the first available exam session. As a further exam test, an oral test can be taken, at the request of the teacher.
The last classes of the course will be dedicated to the presentation, by the students (also in pairs) of a summary and a critical analysis of a scientific paper (or of an OECD Environmental Report for a specific country) to be agreed in advance with the teacher.
Exams can only be taken in person; online/remote exams are not allow
Exams calendar (on INFOSTUD, too)
12 December 2025, h. 9.00
13 January 2026, h. 9.00
30 January 2026, ore 9.00
22 May 2026, h. 9.00
12 June 2026, h. 9.00
3 July 2026, h. 9.00
8 September 2026, h. 9.00
The times indicated are subject to change. For organizational reasons, the exam rooms will be announced after the booking period closes. Bookings remain open for 10 days, and it is possible to register for the exam up to 5 days before the exam date. No registrations are allowed after the booking period has closed.