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   Course Title    Environmental and Natural Resources Economic Policy in Agriculture
Lecturer    Svitlana Levchuk
Institution    State University of Agriculture and Ecology of Ukraine
Country    Ukraine


For several decades economics has been concerned with topics such as exhaustible resources and pollution, but during the last two decades, the frequency of related books and articles has accelerated rapidly. Consequently, we have come to a better understanding of the relationship between humanity and the environment and how that relationship affects, and is effected by, economic and political institutions.

This knowledge has allowed political leaders to forge new solutions to old problems. Economic principles underlie fundamentally new approaches to controlling pollution, making better use of scarcer water supplies, stemming deforestation, and limiting climate change. In this course, Environmental and Natural Resources Economic Policy in Agriculture, students will be introduced to these economic principles and the entire spectrum of economic approaches to producing better environmental outcomes derived from them.



  • To review the history of environmental policy in the European Union, Ukraine and the USA;

  • To increase the understanding of the public policy-making process and the role of economic analysis in that process;

  • To practice applying economic concepts to environmental and natural resources problems;

  • To understand the role of Natural Resources Assessment;

  • To understand what the Natural Resources Conservation Service is;

  • To improve and apply written and oral skills.



Students of the Ecological Faculty at the State University of Agriculture and Ecology of Ukraine study the following courses:

  • Fundamentals of Ecology;

  • Environmental and Natural Resources Economics;

  • Environmental Management;

  • Environmental Impact Assessment;

  • Ecological Expertise;

  • Modeling of Ecological Systems, etc.

The proposed course, Environmental and Natural Resources Economic Policy in Agriculture, should be one of the most important part in this curriculum, as agriculture is the most intensive form of land use.



While delivering this course the following teaching methods will be used:

  • lectures;

  • seminars;

  • discussions;

  • student presentations;

  • case studies and practical calculations;

  • writing works;

  • excursions to enterprises and policy-makers;

  • colloquiums;

  • mid-term and final exams.



Requirements-  Percent of Grade:

Mid-term Exam 15%

Writing Component 45%

Final Exam 20%

Discussion 20%

The total number of hours: 108

Lectures: 24,

Seminars: 24,

Practice: 24,

Out of class: 36.

Form of evaluation: Mid-semester exam, Final exam.




1. Introduction and Overview

Definition and principles of Environmental policy. Urgent environmental problems. Development of Environmental policy. Importance of Environmental Policies for Agriculture.

2. History of Environmental Policy in the World

Global problems of Environmental policy. The sustainable development in the World. International Conference in Rio-de-Janeiro, 1992. Climate change. Air pollution in the World. Chernobyl catastrophe. Political influence on environmental health.

3. Environmental Policy in the European Union

The Priorities of European Policy. Policy Evolution in the EU: Focus on the Common Market (1957-72); The Environmental Revolution (1973-86); The EU Establishes Legal Competence (1987-92); Consolidation (1993-) The Legal Basis for EU Policy. Policy Principles and Agenda-Setting. Policy Formulation, Adoption and Implementation. The Commission Policy Process.

4. History of Environmental Policy in the USA

The 1400s through the 1700s: Inhabiting a New Land. The Early 1800s: Destroying the Frontier. The Late 1880s: Building an Industrial Nation. The 1900s through the 1930s: Beginnings of the Conservation Movement. The 1940s through the 1960s: Prelude to the Green Decade. The 1970s: The Conservation Movement Matures. The 1980s: A Conservative Backlash. The Early 1990s: Government Retrenchment and Public Apathy. The Late 1990s: Institutionalization of the Environmental Movement.

5. History of Environmental Policy in Ukraine. Influence of international and national NGOs on environmental policy in Ukraine

The main ecological problems in Ukraine. The structure of governmental and non-governmental ecological organizations in Ukraine. Influence of international and national NGOs on environmental policy in Ukraine.

6. Economic theory of the Environment

Theoretical base of Environmental Policy. Concepts of Environmental Policy. Basic environmental economic theories tools and rules.


7. The Policy Process and the Role of Economics. The Governmental Policy: Local, State and Federal Levels

Objectives of environmental Policy. Efficiency of Environmental Policies. The Policy process. Governmental Policy: Local, State and Federal Levels. Influence of the National Economy on Environmental Policy. Market Economy, Business and Environment

8. Methods of Economic Analysis: Discounting. Tools and Instruments of Environmental Policy

Cost-Benefit Analysis. The decision rules. Measuring Benefits. Approaches to Cost Estimation. The Treatment of Risk. Choosing the Discount Rate. Cost-Effectiveness Analysis. Impact Analysis.

Example 8.1: Choosing between Preservation and Development in the Zhytomyr Region (Ukraine).

Example 8.2: The Importance of the Discount Rate.

Example 8.3: NO2 Control in Kiev: an example of Cost-Effectiveness Analysis



9. The role of Agricultural Policy

The Agricultural Sector and Policy. Economic Analysis of Agricultural projects. Examining Global Scarcity. The role of Agricultural Policies in the EU, USA and Ukraine. Defining the problem: Distribution of Food Resources. Problems and objectives of Sustainable Agricultural Management. International Experience of Sustainable Agriculture. Components of Sustainable Agricultural Systems. Economics of Sustainable Agricultural Systems

Example 9.1: The Price Responsiveness of Supply: Ukraine

10. Land Use Regulation

Land as a Natural Resource. Types of Land Use. Land Use Dynamic. Zoning Regulation and Procedure. Zoning Provisions Subdivision Regulations. Private Restrictive Covenants. Land Rent and Land Pricing. Farmland Preservation. Preferential Assessment of Land for Estate Taxes. Eminent Domain Actions. Agricultural Security Areas. The mechanism of regulating land use (Economic Tools, Legislation, Administration, Role of Public Institutions).

Written Assignment (multiple-choice Questions and Short-Essay Questions).

11. The role of the NATURAL RESOURCES CONSERVATION SERVICE in the Governmental Policy

History of the Natural Resources Conservation Service in the USA and Europe. European and American organizations on Natural Resources Conservation. The Federal Agriculture Improvement and Reform Act of 1996. Farm Bill Summary. Conservation. Governmental Programs of the USDA (NRCS) for Farmers. Summary Report Natural Resources Inventory. Analysis of NRCS activities. Perspectives of developing the NRCS in Ukraine.

12. The Quest for Sustainable Development

Sustainability and Agricultural Development (Market Allocations, Efficiency and Sustainability). Trade, Agribusiness, Agrarian Marketing and the Environment. Managing the Transition, Defining the Target. Prospects for International Cooperation. Economic Model of Sustainable agricultural Development in Ukraine



Benjamin Kline, First Along the River: A Brief History of the U.S. Environmental Movement

Frank S. Arnold, Economic Analysis of Environmental Policy and Regulations

Tom Tietenberg, Environmental Economics and Policy, the 5th Edition, 2000

Environmental Policy in the European Union by John McCormick, 2001

The Federal Agriculture Improvement and Reform Act of 1996. Farm Bill Summary. Title III. Conservation (pp5-8)

Hans Essmann, Noel Lust, Davide Pettenella, Yurij Tunytsya. ENARECO a new Master study course on Environmental Economics in Ukraine. Ideas, Objectives, Contents. Lviv, 2000

Lin Xiannuan, Natural Resources, published: Armonk, NY, 1997

Mark S. Coyne, Craig W. Allin. Natural Resources, published Pasadena, California, 1998

David M. Bearden. The Natural Resources and Environment function in the FY 2001 Federal Budget: an overview of programs and funding, published: Washington, D.C.: Congressional Research Service, Library of Congress, 2000

Environment and Business by Alasdair Blair and David Hitchcock /London and New York, 2001

Economics of Natural Resources and the Environment by David W. Pearce and R. Kerry Turner /London, 1990

Economic Instruments for Environmental Management. A Worldwide Compendium of Case Studies. Edited by Jennifer Rietbergen-McCracken and Hussein Abaza /London, 2000

Economic Rights and Environmental Wrongs. Property Rights for the Common Good by Rose Anne Devlin and R. Quentin Grafton /Cheltenham, UK and Northampton, USA, 1999

Accounting for the Environment by Rob Gray with Jan Bebbington and Diane Walters /London, 1993


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