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Theory It will also help you to create a unique and memorable project, as most of your fellow students will likely study a topic which is based purely in economics. This might make your project a little harder, as you will have more new information to grasp than others – but it can also be very rewarding for ambitious and engaged students. Will a shift to bio-energy sources (ethanol or bio-diesel) increase welfare? The Difficulty Behind Econometrics Projects . Our goal is to help developing countries find solutions to the toughest global and local development challenges—from adapting to climate change … Environmental economics is interdisciplinary in nature, and, thus, its scope is far-reaching. Potential topics for Environmental Economics papers (you may choose your own topic, but you need to get an ok from me first) 1. As stated by Hanley, Shogren, and White (2007): "A market failure occurs when the market does not allocate scarce resources to generate the greatest social welfare. 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