Course Information

Course responsible

Professor Arne Eide (course responsible) and PhD-student Tannaz Alizadeh will lecture the course and PhD-student Suthamathy Nadarajah is responsible for the course seminars.


This course aims to provide the student with knowledge on how to use different project evaluation methods and give a basic introduction to the central concepts of resource economics.


You need to have basic knowledge of economic theories before taking this course. If you need to improve or refresh your current knowledge of basic economics, spend some time on the course material you find in the online course SOK-2040 Basic Economics or the more complete introduction to principles of microeconomics provided by MIT (MIT 14.01SC Principles of Microeconomics). In the slide show below some of the basic principles are presented.

Course description

This course gives a first introduction to resource economics and presents applied methods of project evaluation, Present value evaluation, future value evaluation, Cost-benefit calculation and internal rate of return evaluation. The course includes a historical perspective on resource use and discusses the ethical foundation of the utilisation of natural resources. Environmental economics together with the exploitation of non-renewable resource and cultivated renewable resources constitute the major part of the course. The student is introduced to the central terms as resource rent, optimal price paths, optimal resource extraction and optimal rotation.