Making introductory economics more relevant: Using personalized connections to introduce environmental economics

Abstract

Instructors have used real-world problems in introductory economics classrooms for over three decades, but today’s students continue to perceive that economics is not relevant for their lives. I provide three teaching modules associated with pollution externalities designed to improve student perceptions of relevance and make the study of environmental problems “more useful for more people.” I provide a new context-rich problem that helps students make a personal connection with local environmental quality indicators. Two additional modules are included. The second module engages students with the interdisciplinary field of environmental justice. The third module explains how a Nobel Prize winner Ronald Coase’s influential and controversial insight about reciprocal harm can help encourage critical thinking about negative externalities in a world with transaction costs. In such a world, the module focuses on the legal system's role and Coase’s overlooked view that factors other than efficiency should be considered. Finally, I include supplementary materials and tips for instructors wishing to use one or more modules in their classrooms.