The first objective of this course is to review and solidify basic concepts of market economics. Students will then be taught the skills necessary to understand and evaluate the socio-economic-environmental consequences of energy and mineral production, as well as environmental engineering projects, and their relationship to biotic resources and the environment. At the end of the course, the student is expected to know the basic concepts relevant to the role of natural and environmental resources in the economic system, the environmental issues connected with the use of energy and minerals, and to understand how these resources can contribute (positively or negatively) to sustainable development.

The student is expected to gather basic knowledge about the economic characterisation of energy, mineral, and environmental resources. He should gain a basic understanding of resource management issues and their relationship to property rights, externalities, market structure, as well as the economic analysis tools and valuation techniques used in environmental economics. He should understand what is meant by sustainable development and how sustainability concepts are applied to energy, minerals and to production systems and engineering projects.

Basic Principles of Economics.

' Review of basic market economics. Concepts of supply and demand, markets and equilibrium will be reviewed.
' Role of natural resources in the economy and man's efforts to modify the earth to his needs. Role and evolution of energy and minerals in the economy: past, present and future perspectives. The birth of the 'Environmental Issue'.
' Mineral economics. Basic microeconomic theory as applied to natural resources. Economic significance of mineral raw materials and the resource industry. This section will include a discussion of macroeconomics as related to minerals and energy i.e., resources in GDP and national income and product accounts. Principles of minerals economics, including scarcity and resource depletion, the nature of economic rent, coproduction, and static efficiency. Market structure, international aspects, and trade of minerals. (Including practice exercises.)
' Environmental economics. Progression from environmental to ecological economic theory; core concepts, including public goods, common property resources, pollution, and externalities. Cost-benefit analysis, including abatement costs, market and non-market valuation of damages, and discounting. The internalization of externalities. Environmental policies and public/private instruments. Applications of the foregoing to energy, mineral, and engineering projects. (Including practice exercises.)
' Basics of energy resources economics. Primary and secondary energy sources. Demand and supply of energy. Conventional energy sources: oil, gas and coal. Renewable energies. Evolution of the international energy strategies from the birth of OPEC to present days.
' Environmental management of energy. Energy Management and Industrial Energy Analysis. (Including practice exercises.)
' Introduction to sustainable development as applied to energy and mineral resources. The shift to sustainable development. Recent applications of sustainability by governments. Applying the concepts of sustainability to energy and mineral resources, and to engineering projects. Sustainability and business management in the energy and mineral, and the engineering industries. (Including practice exercises)
' Life Cycle Assessment (Group 1 - in Italian / Group 2 - in English). A methodology to evaluate the environmental performances of production and consumption systems. Origin and basic principles of LCA according to the ISO 14040 standards. Use of LCA software applications. Basics of Life Cycle Management and green communication. (Including practice exercises.)

' Practice Exercises / Laboratories (Group 1 - in Italian / Group 2 - in English). Applications of the theoretical lessons, i.e., of the concepts and methods described in lectures and reference materials. Due date for each exercise will be announced in class and on the website. The computer laboratory of the DITAG will be used in order to carry out those practice exercises which require the use of the software packages SimaPro, Boustead Model and I-LCA during the Life Cycle Assessment portion of the class.
' Team Project (Group 1 - in Italian / Group 2 - in English). Report dealing with the industrial-economic-sustainability overview of a mineral product, including issues of mine and product life cycle (Students in Petroleum Engineering). For students in Environmental Engineering, the report will need to focus on the review of an existing project, including discussion of potential environmental impacts, and a sustainability assessment of the project.

Powerpoint Slides available at the Politecnico web site.
References:
Field, Environmental Economics, Chapters 5 and 6, McGraw-Hill, Irwin, 2009.
Gibson, et al., Sustainability Assessment, Chapter 3, Earthscan, 2005.
Hacket, Environmental and Natural Resource Economics, Chapters 3 and 4, M.E. Sharpe, 2006.
IEA, World Energy Outlook, International Energy Agency.
IEA, Renewables Information. International Energy Agency.
Stiglitz, Sen and Fitoussi, Report by the Commission on the Measurement of Economic Performance and Social Progress, 2009, http://www.stiglitz-sen-fitoussi.fr/en/index.htm
Tilton, Mineral Economics: an overview of the discipline, 2007.
Turner, Pearce and Bateman, 1993, Chapters 5 and 8, Johns Hopkins, 1993.
Additional supplementary articles and materials (uploaded in the Politecnico web site)

Extra readings:
Baldo, Badino; 'LCA - Uno strumento di analisi energetica ed ambientale'. IPASERVIZI, Milano, 2000
Varvelli, Petrolio e dopo? ETAS, Milano, 2007
Dahl, International Energy Markets. PennWell, 2004.
Leggett, Half Gone. Portobello Books, 2005
Lomborg, The skeptical environmentalist. Cambridge University Press, 2001
Meadows, Randers & Meadows, Limits to growth: The 30-year update. Chelsea Green Publishing Company, Vermont, 2004

Intermediate evaluation of practical exercises might be forecasted (details will be provided through the web site).
The final examination consists of a written test (1,5 hours) made of open questions and short exercises (optional oral examination is allowed only in particular cases).
The final mark is given 50% according to the mark obtained in the written examination, 35% according to the mark obtained in the Team Project report and 15% in practical exercises.
In order to attend the final examination it is necessary:
- to register via web site of the Politecnico within the deadline;
- to submit the Team Project report any time, but not later than 5 days before the written examination.
Practice exercises and Team Project must be in English. The written examination can be taken either in English or Italian.