PALAZZI FLORENCE ASSOCIATION FOR INTERNATIONAL EDUCATION

FLORENCE UNIVERSITY OF ARTS

ISB INTERNATIONAL SCHOOL OF BUSINESS (BU)
DEPARTMENT OF ECONOMICS
THE ECONOMICS OF SUSTAINABILITY
BU EC ES 330
SECTION: 201 SPRING 2014
3 semester credits
Day and Time: Monday, 12,00-14,30
Instructor: Dr. Riccardo Simoncini PhD
E-mail: riccardo.simoncini@libero.it
1. DESCRIPTION
Economic concepts and theories for analyzing sustainable development and practices from
business, government and non profit organizations. Learn how economics is irrevocably linked
to the natural environment and our social institutions. Study market and non-market values
for
environmental and social services, approaches to measure national progress toward
sustainable development, causes and potential solutions to environmental and social
degradation, roles of the business, government and non profit sectors in fostering
sustainability,
and the emerging field of ecological economics.
Instructors Note:
The course will be basically divided in two parts: In the first section the main economic
theories and schools of thought contributing, together with other scientific disciplines, to the
development of the economics of sustainability, will be analysed through an historical
approach. Students will be also introduced to the environmental issues currently at stake such
as biodiversity loss, climate change, pollution, etc. so to develop a clear vision on how, when,
from where and why the economics of sustainability has emerged. The definition of the
concept of sustainability in its ecological, economic and social, temporal and territorial
dimensions will be explained. Different approaches to measure sustainability of economic
activities will be analysed, including how to value and account the environment, while
highlighting the limits of a purely economic approach to environmental sustainability. The
focus will be on the approach based on ecosystem goods and services, Total Economic Value,
monetary valuation techniques, environmental standards and sustainability indicators. Finally
it will be investigated how these approaches have been used in developing sustainability
policies at global and international levels by governments and international organisations.
In the second section, by building on the first, the issues of how sustainability concepts can
be implemented into practice by economic activities will be addressed. Different governance
instruments of economic activities, such as markets, payments for ecosystem services and
regulatory tools, will be looked at through real examples. Concrete solutions and strategies
provided by economics of sustainability to solve environmental problems in economic sectors
will be introduced and analysed, paying specific attention to agriculture, rural tourism and
protected areas given their strict relations with natural resources sustainable use.
2. OBJECTIVE
This course has basically four objectives which correspond to the articulation of the
arguments

proposed by the instructor:

1) to give an overview of Economics of sustainability: its origins, its meaning, its scope within
an
historical framework;
2) to understand the deep inter-connection between environment and economy, providing the
students with the tools to evaluate the environmental and ethical implications of
contemporary
economy;
3) to be able to analyse economy through less-conventional parameters like environmental
impact of economic activity and sustainability;
4) to understand how and to what extent economics of sustainability have been integrated in
economic sectors and policies;
3. REQUIREMENTS
No requirements. No eating is allowed in class. No cheating is allowed and any inappropriate
behaviour will be tolerated. A responsible and active class participation is expected at all
times
and activities. At all times cell phones must be turned off. Please also consider important
notes
on attendance and assignments as described in pertinent paragraphs.
4. METHOD
The course will be structured in: lectures, power point presentations, structured class
discussions
on essays and scientific articles, videos, case studies, assignments. Each week students will
be required to sum up the previous lesson. Students are required to participate in class
discussions which will be based on articles, short essays, case studies, videos. Class
discussions are aimed at stimulating
students attention and help them critically reflect on the major topics on the economics of
sustainability.

5. TEXT BOOK FURTHER READINGS INTERNET RESOURCES

COURSE TEXT BOOK

Electronic files of the lecture presentations will be available to students at the end of each
lesson. Readings will be assigned after each lecture. The electronic files of some of these
readings (e.g. open access articles) will be shared with students.
FURTHER SUGGESTED READINGS on environmental and ecological economics:
Daly H., 2004, Ecological Economics: Principles and Applications, Washington, Island Press.
Kula E., 1998, History of Environmental Economic Thought, Routledge
Perman R., Ma yue, Mcgilvray J., Common M., 2003, Natural Resources and Environmental
Economics, Pearson Addison Wesley, 3rd Edition, Pearson Education Limited, Harlow.
Timpson W., 2006, 147 Tips for Teaching Sustainability: Connecting the Environment, the
Economy
and Society, New York, Atwood Publisher,.
Turner Kerry R., Pearce David, Bateman Ian, 1994, Environmental Economics: an elementary
introduction, Harvester Wheatsheaf
Wankel C. et al, 2008, Global Sustainability Initiatives: New Models, New Approaches,
Greenwich,
CT., Information Age Pub Inc,.
INTERNET RESOURCES:

Report of the World Commission on Environment and Development: Our Common Future in
www.un-documents.net/wced-ocf.htm
Valuing the Environmentin www.wds.worldbank.org
Caring for the Earth: strategy for sustainable living in http://coombs.anu.edu.au
The Earth Charter Initiative(2000) in http://web.archive.org
Problems and Principles of Ecological Economies in http:// www.eoearth.org
Transition to Sustainability: Towards a Human and Diverse World in http://cmsdata.iucn.org
and www.iucn.org

LIBRARIES IN FLORENCE
Students have access to the school library located on the first floor of Corso Tintori 21. Please
consult the posted course schedules for official opening times.
Please note that both libraries are consultation only and thus it is not possible to remove
texts.
It is possible to make photocopies (fee-based).
Students are encouraged to take advantage of Florences libraries and research centers:
Biblioteca Palagio di Parte Guelfa
Located in Piazzetta di Parte Guelfa between Pza della Repubblica and Ponte Vecchio.
Telephone: 055.261.6029. The library is open Monday thru Saturday. This library is open until
10:00pm during weekdays.
Biblioteca delle Oblate
Located in via dell'Oriuolo 26 (across the street from SQUOLA Center for Contemporary Italian
Studies) Telephone: 055 261 6512. Please consult the website www.bibliotecadelleoblate.it for
current opening times under orario.
The Harold Acton Library at the British Institute of Florence
Address: Lungarno Guicciardini 9. For opening times and student membership information:
www.britishinstitute.it/en.This is a fee-based membership library.
6. VISITS - FIELDTRIPS
No field trip is scheduled
7. MATERIAL LIST
See Section 5. (TEXT BOOK AND ACADEMIC RESOURCES)
8. ADDITIONAL FEES
N/A
9. EVALUATION - GRADING SYSTEM
Final Grade Breakdown
10% ATTENDANCE & PARTICIPATION (including participation in class discussions)
20% 2 QUIZZES (i.e. 10% each quiz)
20% ORAL PRESENTATION
20% MID TERM
30% FINAL EXAM
Please note that a detailed explanation of the above is found in Section 11 (Assignments,
Term
Papers and Exams).
Grading Scale
A = 100 93% A - = 92 90% B+ = 89 87% B = 86 83% B- = 82 80%
C+ = 79 77% C = 76 73% C- = 72 70% D = 69 60% F = 59 0%

10. ATTENDANCE - PARTICIPATION

Institutional Attendance Policy: Academic integrity and mutual respect between
instructor
and student are central to a positive and productive learning experience. This belief is
reflected
in the attendance policy. Attendance will be taken at the start of every class. Attendance is
mandatory for all class meetings. Absence from class will negatively impact the final grade.
One to Two Absences: Will result in lowering of the Participation and Final Grade as per the
grading system.
Three Absences: Will result in the final grade being lowered one full letter grade.
(Example 90% / A will become 80% / B -)
Four Absences: Will result in an automatic failure.
It is the student's responsibility to know how many absences they have in a course. If you are
in
doubt, talk to your instructor!
Late Arrival and Early Departure
Arriving late or departing early from class is not acceptable. Two late arrivals or early
departures or a combination will result in an unexcused absence. Travel is not an exceptional
circumstance. Travel (or delays due to travel) is NEVER an excuse for absence from class.
11. EXAMS - PAPERS
2 quizzes counting for 10% each: there will be two quizzes given during the term. Each
quiz will
comprise 10 quiz questions on the lessons
Quiz 1 due to week 4
Quiz 2 due to week 11
Oral presentations counting for 20% Students will be assigned the topic by the instructor
who will indicate them the main written and web resources to use for the oral presentations
oral presentation have to be performed in 10 minutes. Students presentations will be held in
two different days: the first group on week 6, the second group on week 12.
Midterm counting for 20%: the mid-term exam will consist in:
short-essay questionnaire (10 questions in total). Students will have to answer with
concise
explanations, definitions, main ideas, key words. Each correct and complete answer will
be given 10 points, summing up to 100 points in case of 10 perfect answer. Questions
will be on the lectures. Students who arrive late or will miss the class will
automatically receive
an F.
Final counting for 30%: the final exam has the same format of the
mid-term exam and is NOT cumulative. It will consist in: short-essay questionnaire (10
questions in total). Students will have to answer with concise explanations, definitions, main
ideas, key words, names, dates etc. Each correct and complete answer will be given 10
points, summing up to 100 points in case of 10 perfect answer. Questions will be
on the lectures.
Students who arrive late or who will miss the class will automatically receive an
F.
!!!!!!!!!Remember that the dates of the exams cannot be changed for any reason,
so
please organize your personal visits, trips etc. accordingly!!!!!!!!.

12. LESSONS
Week 1
Lesson 1, Date:
Introduction to the course: scope and objectives; methodology, teaching strategy, description
of the syllabus; information on quizzes, exams etc.
Lecture: A critical historic review of main economics theories, schools of thought, scientific
disciplines and ethics contributing to economics of sustainability (I). The conventional views:
from early days to classical economists, from the Neo-classical economics theory and welfare
economics, to the interventionists school of thought and the economics theory of
development.
Readings: (Mandatory) Hodgson Geoffrey, 1997, Economics, Environmental policy and the
Transcendence of Utilitarianism, in Valuing Nature? Economics, Ethics and the Environment,
John Foster editor, Routledge, London, pp.48-63
Week 2
Lesson 2, Date:
Lecture: A critical historic review of main economics theories, schools of thought, scientific
disciplines and ethics contributing to the economics of sustainability (II). The alternative
views: from the American Conservation Movement to Aldo Leopold, from the Club of Rome, to
Bouldings Spaceship Earth and Lovelocks Gaia Hypotesis, from Neo-Malthusians, to
Georgescu Roegen and the materials balance approach, from Herman Daly to Deep Ecologists
and, Latouches de-growth concept; The environmental issue at stake: biodiversity loss,
climate change, pollution, demographic growth, etc;
Readings:
(Mandatory) Venkatachalam L., (2007), Environmental economics and ecological economics: Where
they can converge?, Ecological Economics N 61 (2007) pp.550-558, Elsevier
Aldo Leopold (1948), The Land Ethics, from A Sand County Almanac, and sketches here and there, first
published in 1949 by Oxford University Press, lnc., 200 Madison Avenue, New York, New York 10016
(available at http://home2.btconnect.com/tipiglen/landethic.html
Latouche Serge, Would the West actually be happier with less, Le Monde Diplomatique, 2003
Millennium Ecosystem Assessment (2005) Ecosystems and Human Well-being: Synthesis. Island Press,
Washington DC. pp.1-24
Week 3
Lesson 3, Date:
Lecture: Definition of sustainable development: The environmental issues at stake:
demographic growth, depletion of fisheries, conversion of forest ecosystems, nitrogen
pollution from agriculture, loss of biodiversity, CO2 emissions and climate change; The UN
Conferences on sustainable development The different dimensions of sustainability: ecology,
economy, society, space and time,.
Reading (mandatory) Adams, W. M. and Jeanrenaud, S. J. (2008). Transition to Sustainability:Towards a
Humane and Diverse World. Gland, Switzerland: IUCN. (pp.8-74)
Note Quiz 1 is due to the next week!
Week 4
Lesson 4, Date:
Quiz 1 will be administrated at the beginning of the lesson.
Lecture: How to measure sustainability of economic activities: weak and strong sustainability: the
problem of substitutability of factors of production, the problem of the discount rate, the
problem of thresholds, (limits to growth debate), the problem of too simplistic economic
models, the problem of market and government failures, private and public goods
Readings:

 (Mandatory) De Groot, R., Wilson, M.A. and Boumans, R.M.J. (2002). A Typology for classifications,
descriptions and valuation of ecosystem functions, goods and services, in Ecological Economics vol.41,
Special Issue: The dynamics and value of Ecosystem services: Integrating economic and ecological
perspectives, Elsevier, August 2002. available at www.sciencedirect.com
Costanza et al. (1997) The value of the worlds ecosystem services and natural capital, Nature 387:
253-260.
European Communities (2008) The economics of ecosystems & Biodiversity, An interim report. A Barson
Production, Cambridge, UK, ISBN-13 978-92-79-08960-2
Week 5
Lesson 5, Date:
Lecture: how to measure and implement sustainability: Indicators of welfare and sustainability; the concept
of Multifunctionality of economic activities; the precautionary principle; the safe minimum standard
approach; the ecological footprint; environmental policy instruments to internalise environmental
externalities.
Reading:
(Mandatory) Costanza et al., 2014, Time to leave GDP behind, Nature 505. 283-285
(Mandatory) OECD, 2001, Multifunctionality towards an analytical framework, OECD, Paris, pp.9-26
Partha Dasgupta, 2010, Nature's role in sustaining economic development, The Royal Society, Free
access article, Downloaded from rstb.royalsocietypublishing.org on January 18, 2010
The EU Sustainable Development Strategy
Note: First group of oral presentations are due to the next week
Week 6
Lesson 6, Date:
Lecture: First group of ORAL PRESENTATIONS ARE DUE.
At the end of the presentations the teacher will make the review for the mid term
Note Next week midterm
Week 7
Lesson 7, Date
Lecture MID TERM EXAM
Week 8
Date:
Lecture Semester break. No class will be held
Week 9
Lesson 8, Date:
Lecture From theory to practice (I): Sustainable concepts and the agricultural sector economy
in the Chianti area in Tuscany: from the share-farmers economy to intensive agriculture
specialised in wine and oil of olive production and back to a future of multifunctional
agriculture
Reading:
(mandatory) Simoncini R. (2010), Governance objectives and instruments, ecosystem
management and biodiversity conservation: the Chianti case study, Journal Regional
Environmental Change, Published on line 18 February 2010, DOI 10.1007/s10113-010-0112-x
(The original publication is available at
http://www.springerlink.com/content/a4136v90128t4j85/fulltext.pdf)
Week 10
Lesson 9, Date:

Lecture From theory to practice (II): How sustainable concepts can be used to develop
effective and efficient agri-environmental programmes to conserve biodiversity and rural
landscape: The EU AEMBAC project
Reading:
(mandatory) Simoncini R., (2009), Developing an integrated approach to enhance the
delivering of environmental goods and services by agro-ecosystems, in Journal Regional
Environmental Change, Volume 9, Number 3 / September, 2009, Special issue on Rural Areas:
Assessing sustainable options for multi-functional use of rural areas; Guest editors: Simoncini
R., de Groot R., Pinto Correia T., Publisher Springer Berlin / Heidelberg ISSN 1436-3798,
available at http://www.springerlink.com/content/103880/
Simoncini R., (2004), How to develop local agri-environmental measure: introductory guidelines for local
planners and administrators, IUCN, Cambridge, UK
Note Quiz 2 is due to the next week
Week 11
Lesson 10, Date:
Lecture Quiz 2 will be administrated at the beginning of the lesson.
From theory to practice (III): How to measure the social appreciation of rural landscape and
promote sustainable tourism in European countryside.
Reading;
(Mandatory) Garrod Brian, Wornell Roz, Youell Ray (2006), Re-conceptualising rural resources
as countryside capital: The case of rural tourism, Journal of Rural Studies 22 (2006) 117128,
Elsevier, doi:10.1016/j.jrurstud.2005.08.001
Note: second group of oral presentation due for next week!

Week 12
Lesson 11, Date:
Lecture: Second group of oral presentations
The costs and benefits of the establishment of EU Natura 2000 network for biodiversity conservation:
Readings:
(Mandatory) European Commission, 2011, Investing in Natura 2000: for nature and people,
IEEP (2002), Background Report for European Conference on Promoting the Socio-Economic Benefits of
Natura 2000, Brussels, 2829 November 2002, Report by Patrick ten Brink,Claire Monkhouse and Saskia
Richartz, Institute for European Environmental Policy (IEEP), November 2002
Week 13
Lesson 12, Date
Lecture: From theory to practice (IV): Existing and developing markets for typical traditional products: The
case studies of the cherry old varieties Ciliegia di Lari and of the old breed Calvana cow in Tuscany.
Readings:
Navdanya, 2012, Seed Freedom: A global citizens report, Coordinated by Navdanya, October 2012
UNCSD secretariat, 2011, Food security and agriculture, Rio 2012 Issues briefs, December 2011 N9
http://www.uncsd2012.org
Week 14
Lesson 13, Date
Lecture Screening of the document film: An Unconvenient Truth by A. Gore (or another
document film). At the end of the lesson the teacher will make the review for the final
Readings: none
Note Next week Final

Week 15
Lesson 14 Date
Lecture FINAL EXAM

EMERGENCY LESSON: In case of the instructors absence, the students will be provided
with the screening of The 11th hour, directed by J. Merin (U.S. 2007) an independent
documentary on global warming and related topics narrated by leo Di Caprio .They will be
required to answer 4 short essay questions IN CLASS.