Economics 255: Environmental and Natural Resource Economics

Winter 2012
Instructor: Jim Casey
Contact Info: 214 Holekamp Hall, Ext. 8102, Email: Caseyj
Prerequisite: Economics 101

This course meets MWF, in Huntley 324, from 10:10 to 11:05 and 11:15 to 12:10

Office Hours: MTWTh

Friday by appointment


Contents:
(1) Course Objectives
(2)
Readings
(3) Requirements and Grading
(4) Course Outline


(1)Course Objectives: The course is an introduction to both environmental and natural resource economics.  Throughout the semester we will see how economic principles can be and are being used in public and private decision making involving the management and use of environmental and natural resources.  Aspects pertaining to fisheries, forests, species diversity, agriculture, solid waste and various economic policies to reduce air, water and toxic pollution will be discussed. We will spend a significant amount of time looking at the relationship between energy acquisition and global climate change.  The lectures, reading assignments, discussions and papers will be directed at using microeconomic analysis for dealing with environmental and natural resource problems.

By the end of the semester,  (1) you should be able to analyze current environmental and natural resource management issues using basic economic models.  (2) You should be familiar with the concept of market failure and (3) how non-market valuation techniques are used to value environmental and natural resources.  Lastly,    (4) you should be comfortable using economic analysis to explain policy interventions aimed at reducing environmental externalities.


(2) Readings:

Kahn, James R.  The Economic Approach to Environmental and Natural Resources, Thomson-Southwest, Third Edition 2005.

Selected articles    (online)

Klare, Michael T.  Blood and Oil: The Dangers and Consequences of America's Growing Petroleum Dependency,  Metropolitan Books, Henry Holt and Company, 2004.


(3) Requirements: (1) There will be two exams each worth 35%.  (2) 5 random quizzes (on the day's assigned reading) worth 10% and (3) the remaining 20% is for blog participation.  

Exam 1 - Friday, February 17

Exam 2 -   

 CLASS BLOG

Other Blogs to Read

http://www.env-econ.net/

http://e360.yale.edu/

Grading:

Grade

A

A-

B+

B

B-

C+

C

C-

D+

D

D-

F

Points

92.5

90.0

87.5

82.5

80.0

77.5

72.5

70.0

67.5

62.5

60.0

<60.00

This is directly from the course catalogue

GRADES

Grading Scheme

A+, A, A- Superior

B+, B, B- Good

C +, C, C- Fair

D +, D, D- (Marginal)

E (Conditional Failure)

F (Failure)


(4) Course Outline:

I. I. Theory and Tools of Environmental and Resource Economics  
WEEK 1:

Tuesday, Jan 11:    Intro and Kahn ch. 1

Thursday, Jan 13: Kahn ch. 2  and Stavins Readings (handout)

WEEK 2:

Tuesday, Jan 18:  Kahn ch. 3 -

Thursday, Jan 20: Reading TBA

WEEK 3

Tuesday, Jan 25: Kahn ch. 4   and Kahn ch. 5  

Thursday, Jan 27:          The Tragedy of the Commons     and

Conservation Reconsidered - http://www.rff.org/rff/Events/upload/29660_1.pdf

 II. Renewable Resources and Agriculture:

WEEK 4: Water and Fisheries

Tuesday, Feb 1:  Kahn chs. 11 and 15

Thursday, Feb 3:and  Marine Protected Areas: Economic and Social Implications

http://home.wlu.edu/~caseyj/Marine%20Resourcesch11.ppt

WEEK 5: Forests

Tuesday, Feb 8: Kahn Ch.12 and 13

Thursday, Feb 10: Reading - Pattanayak et al. 2010 (on the blog)

 WEEK 6: Biodiversity and Agriculture

Tuesday, Feb 15: Kahn ch. 14 and 17

Thursday, Feb 17:   Reading TBA and review for exam.


III. Energy and climate change - You will notice an (R) or (O) next to each reading.  (R) = Required (O) = Optional

 WEEK 7: Introduction           

Tuesday, March 1: Begin discussion of Blood and Oil  (R) and   Kahn ch. 8 (R) 

Take Home Exam # 1is Wednesday March 2 by 5 pm.

Thursday, March 3: Kahn ch. 9 (R) and ch. 7 (R)          

Climate Policy beyond Copenhagen.ppt (O)

http://environment.nationalgeographic.com/environment/global-warming/ozone-depletion-overview.html (O)

http://www.ted.com/talks/debate_does_the_world_need_nuclear_energy.html - we will watch this in class.

WEEK 8:    Foundations

Tuesday, March 8:

            ENERGY

http://www.rff.org/RFF/Documents/RFF-IB-04-01.pdf(R)

http://www.rff.org/RFF/Documents/RFF-IB%2006-02.pdf(R)

            AIR POLLUTION

http://www.sciencemag.org/content/308/5723/804.full.pdf?sid=dc396739-1fcb-42da-a60a-57f8500b36ff (R)

            CLIMATE CHANGE

Back to the Future: The Great Climate Experiment (R)

http://tigger.uic.edu/~pdoran/012009_Doran_final.pdf (R)

http://www.sciencemag.org/content/305/5686/932.full.pdf?sid=bdf5f236-65d0-4674-9392-5d816aa2fd59(R)

Thursday, March 10:

            THE POWER PROBLEM

http://schraglab.unix.fas.harvard.edu/publications/CV86.pdf(R)

http://harvardmag.com/pdf/2006/05-pdfs/0506-40.pdf (R)

WEEK 9: Economics

Tuesday, March 15:   

http://bostonreview.net/BR32.1/stern.php (R)

 http://www.bepress.com/cgi/viewcontent.cgi?article=1210&context=ev (R)

http://www.bepress.com/cgi/viewcontent.cgi?article=1685&context=ev (R)

Thursday, March 17:   

RFFClimate (R)

http://www.mi.uni-hamburg.de/fileadmin/fnu-files/publication/tol/enpolmargcost.pdf (R)

WEEK 10: Policy

Tuesday, March 22:   

Thursday, March 24 -  RFFClimate (R)  continue reviewing models

 IV. Development and Environment

WEEK 11:

Tuesday, March 29:

http://www.rff.org/RFF/Documents/RFF_NEPI_Exec_Sumamry.pdf  (R)

http://www.bepress.com/cgi/viewcontent.cgi?article=1718&context=ev  (R)

http://www.bepress.com/cgi/viewcontent.cgi?article=1219&context=ev  (R)

http://schraglab.unix.fas.harvard.edu/publications/CV83.pdf (R)

http://schraglab.unix.fas.harvard.edu/publications/CV116.pdf (O)

http://schraglab.unix.fas.harvard.edu/publications/CV105.pdf (O)

http://schraglab.unix.fas.harvard.edu/publications/CV104.pdf (O)

Thursday, March 31:

Stabilization Wedges  (R)

http://www.rff.org/rff/documents/rff-dp-08-26.pdf (R) 

Hydrogen Fuel Cells     (R)

http://www.stanford.edu/group/efmh/jacobson/Articles/I/ReviewSolGW09.pdf (O)

 

WEEK 12:

Tuesday, April 5:   Kahn ch. 6 (R) 

Thursday, April 7:  Welcome to the Anthropocene (R) and Review for final exam