The course is designed to introduce students to key contemporary concepts in urban and environmental economics, and to equip them with the approaches in economics that are generally applied to analyze urban/environmental problems and policies. The course will be divided into two parts. Part I will cover topics on the economics of cities, including rent and wage determination, the location decisions of households and firms, agglomeration economics, housing, transportation and land use. Part II will focus on environmental economics, covering topics on externalities, Pigouvian policies and environmental valuation.