| Course title | Economics of Sustainability |
| Course code | EkonM016 |
| Credit points (ECTS) | 4 |
| Total Hours in Course | 108 |
| Number of hours for lectures | 8 |
| Number of hours for seminars and practical classes | 24 |
| Number of hours for laboratory classes | 0 |
| Independent study hours | 76 |
| Date of course confirmation | 23/10/2024 |
| Responsible Unit | Institute of Economics and Finance |
| Course developers | |
| Dr. oec., vad.pētn. Aleksejs Nipers Dr. oec., prof. Dina Popluga |
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| There is no prerequisite knowledge required for this course | |
| Course abstract | |
| The course would deepen the understanding of the integration of sustainability in the modern economy, extending to the principles of the circular economy and carbon accounting methods. The course explores how economic development can occur while conserving and restoring natural resources, as well as the impact on climate. Students will learn both the theoretical foundations and practical skills needed to evaluate and sustainable and circular economy principles in different contexts, as well as to develop and apply carbon accounting and emission reduction strategies in business and politics. This course is essential for future professionals who want to promote sustainable development in both the business environment and the public sector, providing the necessary knowledge and skills to build an economy that is in line with the principles of environmental protection and social justice.
The aim of the study course is to provide master's students with in-depth knowledge of how sustainability is integrated into economic processes and how it affects the global and local economy. |
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| Learning outcomes and their assessment | |
| Knowledge:
•Demonstrate an in-depth knowledge and understanding of the political and regulatory framework for sustainable development, sustainable economic development models and their similarities/difference. Exam. •Demonstrate an expertise in carbon strategies and voluntary carbon markets. Discussions in class. •Demonstrates an in-depth knowledge of the economic impact of the Sustainable Development Goals and their practical application. Problem-case study. Professional skills: •Able to calculate circular economy indicators. Test. •Can calculate a company's or organization's carbon footprint using one of the carbon metering methods. Practical work. Soft skills: •Defend their own ideas, research results and present them to a wider audience. Presentation, group work. •Work in team. Group work. Competence: •Able to develop a business strategy of the selected company or organization, which includes the transition from a traditional economy to the principles of a circular bioeconomy. Group work, presentation on the developed business strategy. •Able to understand the need for the transformation of the traditional economy and find a solution to implement the sustainable economic development model in practice. Exam, discussions in class. |
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| Course Content(Calendar) | |
| Lectures (8 hours)
1.Fundamentals of the economics of sustainability. (1 hour) Basic concepts related to the economics of sustainability, including concepts related to the interaction between sustainable development, the environment, society and the economy. Sustainability goals and their challenges, conflicts, the role of different types of economies in solving them. Various theoretical frameworks related to the analysis of the economics of sustainability. 2.Political and regulatory framework for sustainable development. (2 hours) Policy settings and frameworks for achieving sustainability goals. Policy instruments for addressing environmental and climate issues in economic processes: taxes, tariffs, transfers, subsidies, private-public partnerships, product standards, technology requirements, production volume quotas, emission licenses, location control. 3.Development models of the economics of sustainability and their comparison. (4 hours) The green economy and its objectives in terms of reducing the carbon footprint, improving energy efficiency and tackling biodiversity loss. Sustainable capitalism and its efforts to maximize long-term economic value creation. The bioeconomy and its basic orientations in relation to the use of bioresources and the emergence of self-sustaining economic systems. Environmental economics and financial impact, cost-benefit analysis of environmental policy to achieve optimal resource management. The essence and principles of the circular economy, the transition from a linear to a circular economy. 4.Carbon strategies and a voluntary carbon market. (1 hour) Carbon accounting and its role in economic processes. Voluntary carbon market standards and platforms (VERRA, The Gold Standard, European Union Emissions Trading System (EU ETS)), their comparison. Practical works (24 hours) 1. Analysis of the Sustainable Development Goals. Study of the problem and its analysis in accordance with one of the United Nations (UN) Sustainable Development Goals. (2 hours) 2. Carbon footprint calculation for selected company or organization. Carbon footprint is calculated using one of the carbon accounting methods that comply with the GHG Protocol or ISO 14064 standards. Development of recommendations to reduce emissions. (4 hours) 3. Dilemmas of market capitalism and sustainable capitalism. Compare the main differences between market capitalism and sustainable capitalism. Identifies and discusses the dilemmas of each type of capitalism and the trade-offs between economic growth and sustainability development goals. (2 hours) 4. Circular economy policy analysis. Examines a country's circular economy policy and analyses its guiding principles and strategic settings. Evaluates its effectiveness, impact on resource management and waste reduction. (2 hours) 5. Implementation of the principles of the circular bioeconomy in an enterprise or organisation. Develops a business strategy of the selected company or organization, which includes the transition from a traditional economy to the principles of a circular bioeconomy. Carry out a life cycle analysis of the new process or product, draw up a waste reduction plan and evaluate measures to reduce carbon emissions. (6 hours) 6. Control work: calculation of circular economy indicators. Calculation of several indicators for a given product - the material circulation indicator; the rate of recovery; extension of the life of the product; the amount of energy recovered from the waste; the level of waste reduction. (4 hours) 7. Green investments and their impact on business. Evaluates a green investment project (e.g. a renewable energy project) and analyses its economic impact on business and the local economy. (4 hours) |
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| Requirements for awarding credit points | |
| Exam. Accumulative assessment consisting of:
1.Control work (assessment share 20%); 2.Group work and presentations on the developed business strategy (assessment share 30%); 3.Activities in the discussion on political instruments for solving environmental and climate issues in economic processes (assessment share 10%); •Exam (assessment share 40%). |
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| Description of the organization and tasks of students’ independent work | |
| Study of study course materials, legal and regulatory documents, literature sources in preparation for the exam on the political and regulatory framework for sustainable development.
Study and analysis of the literature in preparation for the discussion on political tools for solving environmental and climate issues in economic processes. The study of methodological instructions on conducting a life cycle analysis and drawing up a waste reduction plan in preparation for group work on the development of new business strategies. |
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| Criteria for Evaluating Learning Outcomes | |
| The assessment of the study course exam depends on the cumulative assessment of exam, control work, group work and activity in the discussion.
A student can get a successful grade on the exam test if at least 50% of the test questions are answered correctly. A student can get a successful grade on the control work if 50% of the values to be calculated are calculated correctly. The work and presentation of the groups shall be evaluated in accordance with the evaluation criteria laid down in the practical task. |
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| Compulsory reading | |
| 1.Bioekonomika: attīstības ceļvedis: monogrāfija / Dina Popluga [un vēl 6 autori]; galvenais redaktors: Kaspars Naglis-Liepa. Jelgava: Latvijas Biozinātņu un tehnoloģiju universitāte, 2024. 185 lpp. ISBN: 978-9984-48-434-1
2.Blewitt J. Understanding Sustainable Development. Third Edition. New York, NY: Routledge, 2018. 418 p. ISBN: 978-1-138-20595-6 3.Mahmud W. Markets, Morals and Development: Rethinking Economics from a Developing Country Perspective. London and New York: Routledge India, 2022. 98 p. ISBN: 978-1-03-214924-0 |
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| Further reading | |
| 1.Janvry A., Sadoulet E. Development Economics: theory and practice. Second edition. New York and London: Routledge, 2021. 548 p. ISBN: 978-0-367-45647-4
2. Agosin M. Economic Growth in Middle-Income Countries: A Theoretical and Empirical Approach to Development in Turbulent Times. London and New York: Routledge, 2024. 309 p. 3.Martinho V.J.P.D. Economic Growth: Advances in Analysis Methodologies and Tehnologies. Cham, Switzerland: Springer, 2023.144 p. ISBN: 978-3-031-38362-5 |
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| Periodicals and other sources | |
| 1.Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017). The Circular Economy – A new sustainability paradigm? Journal of Cleaner Production, 143, 757-768. https://doi.org/10.1016/j.jclepro.2016.12.048
2.Bocken, N. M. P., De Pauw, I., Bakker, C., & Van Der Grinten, B. (2016). Product design and business model strategies for a circular economy. Journal of Industrial and Production Engineering, 33(5), 308-320. https://doi.org/10.1080/21681015.2016.1172124 3.Weidema, B. P., & Wesnæs, M. S. (1996). Data quality management for life cycle inventories—an example of using data quality indicators. Journal of Cleaner Production, 4(3-4), 167-174. DOI:10.1016/S0959-6526(96)00043-1 4.Eiropas Bioekonomikas bibliotēka. Pieejams: https://www.bioeconomy-library.eu/ |
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| Notes | |
| Academic Master's study programme "Sustainable Finance" | |