In lecture 17 Professor Stefan Ambec (Co-editor of Environmental and Resource Economics Research Director at INRA, Toulouse) goes through some modeling generalizing the model from his last lecture (14) and he illustrates this by creating examples showing how to tackle various environmental problems, like water pollution in rivers.
He starts by presenting some case studies to give intuition before showing the models. The first example is on water quality trading in agriculture.
Ambec presents the model of how to regulate non-point pollution by categorizing the different agents as firms, consumers, cities and so on, and who are the polluters and polluted. Then he introduces the mathematical part of the model.
His second model is regarding Greenhouse gas emissions, but the method is similar. Ambec gives both examples and real life intuition as well as presenting the mathematical modeling, using first order conditions and so on.
