More specifically, this includes identifying the causes behind environmental problems which are often related to dilemmas of joint action in the face of market failures. We estimate the costs and benefits of policies dealing with areas as air pollution, water quality, toxic substances, solid waste, natural resources and global warming, and how such policies interact with human behavior.
Members of the Environmental Economics Group at the Department of Economics conduct theoretical and empirical research on three main areas. Firstly, the reasons for market and policy failure at the micro and macro levels. Secondly, the selection and design of policy instruments, both nationally (in both rich and poor countries) and globally, to deal with environmental issues. Thirdly, much of our research focuses on experimental and valuation studies and their behavioral foundations.