SYLLABUS INTERNATIONAL PROGRAM FOR ISLAMIC AND FINANCE (IPIEF) FACULTY ECONOMIC AND BUSINESS UNIVERSITAS MUHAMMADIYAH YOGYAKARTA

Name of Course : Envirounmental Economics and Practical Credit Value : 3 (three) Semester : 5 (five) Instructor : Dr. Endah Saptutyningsih, S.E., M.Si

COURSE DESCRIPTION This course studies the concept of natural resource and environmental economics, economic and environmental paradigms, sustainable economy, environmental quality, externalities, natural resource use, environment and developing countries, value typology, market valuation, environmental damage valuation methods, revealed preferences techniques, Stated preferences techniques, Benefit Cost Analysis and dose response. LEARNING OBJECTIVES 1. Students understand the concept, paradigm of natural resource and environmental economics, sustainable economics and are able to provide various case examples 2. Students are able to explain the concept of externality and apply it to various cases 3. Students are able to explain with examples about the use of natural resources and environmental issues in developing countries 4. Students understand the typology of values and market valuations and provide examples of cases 5, Students are able to apply various environmental damage valuation methods in various cases using revealed preferences and stated preferences techniques, as well as Benefit Cost Analysis and dose response functions. GLOSSARY 1. Sustainable economics is practices that support long-term economic growth without negatively impacting social, environmental, and cultural aspects of the community. 2. Property right is theoretical socially-enforced constructs in economics for determining how a resource or economic good is used and owned. 3. Externalities are the cost or benefit caused by a producer that is not financially incurred or received by that producer 4. Market faiure is the economic situation defined by an inefficient distribution of and services in the free market. 5. Market goods are goods sold outside the authorized distribution channels by entities which may have no relationship with the producer of the goods 6. Non-market goods are the most environmental goods and services, such as clean air and water, and healthy fish and wildlife populations, are not traded in markets. 7. Renewable resources are a natural resource which will replenish to replace the portion depleted by usage and consumption, either through natural reproduction 8. Non-renewable resources are the natural substance that is not replenished with the speed at which it is consumed. It is a finite resource. 9. Willingness to pay is the maximum at or below which a consumer will definitely buy one unit of a product. This corresponds to the standard economic view of a consumer reservation price. 10. is the minimum amount of money that а producer (a seller) is willing to accept to sell a good or , or to put up with something negative, such as pollution. 11. Revealed preference is an economic theory regarding an individual's consumption patterns, which asserts that the best way to measure consumer preferences is to observe their purchasing behavior. 12. Stated preference is the methods that involve asking individuals questions that can be used to infer. economic values either using direct or indirect expressions of economic value 13. The hedonic price method uses the value of a surrogate good or service to measure the implicit price of a non-market good. 14. The travel cost method involves collecting data on the costs incurred by each individual in travelling to the recreational site or amenity. This 'price' paid by visitors is unique to each individual, and is calculated by summing the travel costs from each individuals original location to the amenity. 15. The contingent valuation method is is used to estimate economic values for all kinds of ecosystem and environmental services. The contingent valuation method involves directly asking people, in a survey, how much they would be willing to pay for specific environmental services. 16. Choice modeling attempts to model the decision process of an individual or segment via revealed preferences or stated preferences made in a particular context or contexts. Typically, it attempts to use discrete choices (A over B; B over A, B & C) in order to infer positions of the items (A, B and C) on some relevant latent scale (typically "" in economics and various related fields). 17. Benefit cost analysis is a systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieving benefits while preserving savings (for example, in transactions, activities, and functional business requirements). 18. Welfare function is a function that ranks social states (alternative complete descriptions of the society) as less desirable, more desirable, or indifferent for every possible pair of social states. 19. The dose response is describes the magnitude of the response of an organism, as a function of exposure (or doses) to a stimulus or stressor (usually a chemical) after a certain exposure time.

EDUCATION METHOD 1. Small group discussion (online and face-to-face if conditions permit) 2. Assignments (online or face-to-face if conditions permit) 3. Presentation (if conditions permit) 4. Lectures (online & face-to-face if conditions permit) ASSESSMENT 1. Competency test (4x): 60% 2. Assignments and discussions: 40%