This exercise fulfils the following course objectives: to give students a critical understanding of the key concepts and terminology of environmental economics, to give students an ability to explore the relationships between economic activity and the environment using the key concepts of environmental economics to provide a foundation in environmental economics that students can apply in their research or use as a base for more advanced study Assignment: Apply an economic tool (cost-benefit analysis) to examine an environmental issue. You have to choose the substantive topic of the project. You are free to choose the tool and the issue of the study, as long as the assignment retains a clear environmental focus. The purpose and learning goal of this assignment is to be able to apply an economic tool to examine an environmental issue. Write a 3500-word paper reporting your results. Use of material – In addition to articles and books on your reading list, you are expected to use additional relevant references and data. You are not expected to generate primary data – it is sufficient to analyse or re-analyse data that is publicly available. Suggested report structure: 1) introduction; 2) the issue to be studied and the literature on the state of art on it; 3) the approach or tool to be used; 4) results of the application of the tool to the issue; 5) discussion and conclusions; 6) references; 7) printout of the CBA spreadsheet (if relevant) in the appendix.