The term project includes three elements:

  1. The identification of the problem. (3 pages)

1.1. Why is this a problem?
1.2. What type of economic goods or resources are involved in the problem?
1.3. What are the parties involved (i.e., who is degrading environmental quality and who is suffering its consequences?)
1.4. What are the economic causes of the problem?
1.5. What are the economic costs/benefits of the problem?

  1. The socially optimal level of production/consumption/pollution/conservation of a good or resource. (2 pages)

2.1. Efficiency analysis: marginal damage cost curve and marginal abatement cost curve.
2.2. Socially efficient level of consumption/production.

  1. The solution: the policy instrument that can help address the problem. (5 pages)

3.1. Criteria to select the policy instruments.
3.2. Uncertainty and information asymmetries.
3.3. Price and nonprice instruments.
3.4. Graphical analysis of the policy proposal.
3.5. Assumptions and pre-conditions.
3.6. Limitations of the proposed policy.
Format requirements • Length of the document: 10 pages (according to the number of pages defined above for each of the sections).
This number of pages does not include references.

  • Font type size: Garamond, Times New Roman, Calibri, Arial; size 11-point. • Line space: 1.15 or 1.5. • Page margins: 2,54 cm per side.