WASHINGTON & LEE UNIVERSITY
Williams School of Commerce, Economics, and Politics
Spring 2010
ECONOMICS 288
Economics of Tropical Coastal Seascapes
Professor Jim Casey
Holkamp 214, Ext. 8102, Email: Caseyj
Prerequisites:
Permission of the instructor
Quick Overview:
Economics 288 takes an interdisciplinary approach to environmental economics by allowing students to (1) learn economic theory in the classroom, (2) apply it in the field, and (3) learn about coastal ecology and marine biology in the classroom and field in Puerto Rico. The primary economic question to be addressed in this course is how to value coastal resources - specifically – mangroves, seagrass, fisheries and coral reef ecosystems. This course entails the application of microeconomic analysis to coastal environmental problems and explores the underlying economic basis for the formation of coastal and marine policies. An interdisciplinary perspective is coupled with formal economic analysis throughout the entire course. Economic theories of firm and individual behavior will be used to develop formal models of non-market valuation, fish population dynamics, and the valuation of ecological services provided by coastal and marine ecosystems. These formal models provide insights into questions related to: a) the sustainability of marine resources given commercial and recreational demands, b) the optimal amount of protected marine areas, c) the ideal amount of coastal development, and d) the link between land use-water quality-and marine populations. Emphasis will be placed on the techniques economists have developed to value non-market environmental resources. The specific valuation technique to be explored is Contingent Valuation Method (CVM). Class meetings will be devoted to reading and discussing articles from journals with a marine or environmental focus including; Ecological Economics, Water Resource Economics, Fisheries Research, and the Journal of Environmental Economics and Management. Upon completion of this course students will be able to critically evaluate journal articles and conduct rudimentary economic analyses of coastal and marine policy. Student evaluation will be based on participation (written and oral), several written assignments, a mid-term exam, and a final project presentation.
Course Objectives:
General:
1. To introduce you to a number of concepts, issues, and theories in contemporary marine resource economics.
2. To provide you with thinking skills that will enable you to analyze, evaluate, and make decisions concerning complex contemporary marine issues.
3. To help you to improve your communications skills in order to enhance your effectiveness in expressing your view on the issues.
4. To encourage you to become more tolerant of ambiguity and diversity as it pertains to human experience and to increase your ability to deal with multiple points of view.
Specific:
1. Confidently read the literature on marine/coastal valuation and management.
2. Determine for yourself, the validity of environmental valuation for policy purposes.
3. More deeply understand the importance and value of marine environmental resources.
Course Requirements:
Group Paper (30%) - There will only be one exam in this class, but don't be lulled into thinking there will not be a significant amount of work. You will be required to write three linked papers. What does "linked" mean? Each paper will build upon the previous paper. For example, your first paper will provide an overview of the current environmental situation. The second paper will choose a specific issue and develop the appropriate theory for analyzing a specific question. You will form a testable hypothesis and you must clearly state how you will analyze your hypothesis. The third paper will require you to use data to test your hypothesis and write up the results. ( the details – See Appendix A) Each of the three papers will be worth 10% of your final grade.
Take Home Exam (20%) - You will be asked to formally model one particular question from your topic of choice. For example, maybe you are looking at marine pollution. You will want to present and use the appropriate economic model for analyzing the problem of marine pollution. See appendix B for an example.
Group Discussion Leader (10%)- You will be required to bring an article to class and present it. Your presentation should not be spoon feeding as your classmates should have completed the reading as well. Your job is to lead the class in a discussion of the paper. I will have a hand out for you to guide you in your role as discussion leader (See Apendix C).
Presentation (20%) - The last day of the semester will be reserved for individual power point presentations during the seminar. This presentation will present the results of your paper.
Class participation (20%) - Notice this does not say class attendance. You will be required to engage actively in the discussions in this class. Do NOT assume that everyone gets an A for class participation or that class participation can “only improve your grade” for it will be possible to receive an F in class participation. Whenever we have a reading assignment you will need to bring a 100 word abstract to class.
PREPARATION FOR CLASS
100 Word Abstracts
Throughout the term articles will be assigned (A*) that will be the focus of a subsequent discussion. Students will be required to turn in--at the beginning of the class the article will be discussed--a 100 word abstract based on their reading (lots of reflection and a bit of writing). Abstracts must: (1) identify the question or issue being explored in the article, (2) the author’s hypothesis and if they have a view on the validity of the hypothesis if they express one, and (3) a brief summary of the evidence they bring to bear on the hypothesis and whether it is consistent with the hypothesis--if they discuss evidence.
READING POLICY
Students are expected to read the assigned materials for section discussions. Discussion is contingent upon preparation by all of the stakeholders in the educational process--faculty and students. It is the responsibility of all of us to be prepared to participate and learn together. Hence, if you have not read the assigned material you should not attend the discussion section.
Course format:
This course will be broken into three parts.
The first one and one half weeks will be spent in Lexington learning theory. Students will be reading primary literature and meeting each day with me to discuss these articles and explore the underlying economic theory and marine resource valuation. At the end of this part of the course, students will write a formal exam where they will be expected to apply economic reasoning to a marine resource problem. The expectation is for students to be able to use graphical tools in order to analyze ceteris paribus violations that relate to changes in the marine environment.
The second phase of the course is experiential. We will spend 10 days in Loquillo, Culebra and Old San Juan, Puerto Rico. Aside from attending classroom lectures and field trips with the students – I will also meet with students in the after-dinner hours each day, in a relaxed setting, in order to facilitate a conversation related to their experiences during the day. I will be spending approximately 8 hours per day in direct contact with students.
During the second part of the course students will have the opportunity to swim and snorkel the surrounding coral reef environment. We will only conduct these activities under the supervision of qualified personal from UPR-Mayaguez. Additionally, students who are certified will have the opportunity to dive with certified dive instructors.
We will return to Lexington for the final week of the semester. This last part of the course will be used to improve communication skills – both written and oral. My objective is to hold a one day seminar on critical marine resource issues – inviting participation from Environmental Studies, Economics, Poverty, and LACS students on campus. Each of the students will prepare a paper and a power-point presentation for the seminar.
Class Schedule
Monday, April 26 – Introductions and Logistics - Remedial Economics.
Tuesday, April 27 –
What is a Tropical Coastal Seascape?
file:///H:/public_html/spring2009/seascapes.pdf
What is Value?
Kahn chapter 4
Wednesday, April 28 -
http://www.mdsg.umd.edu/programs/extension/valuation/handbook.htm - chapters 2 and 4
spring2009\noaa.htm - focus on section 3
Demand handout
Thursday, April 29 – Economic Valuation of Natural Resources: A Guidebook for Coastal Resources Policymakers
http://www.mdsg.umd.edu/programs/extension/valuation/handbook.htm
Friday, April 30 –
Kahn chapter 11
spring2009\coralcvmparsons.pdf
Economic Considerations for Marine EBM and EAF in the Caribbean, 2008. Peter Schuhmann, Juan Carlos Seijo, and James Casey, in Marine Ecosystem Based Management in the Caribbean: An Essential Component of Principled Ocean Governance.
H:\public_html\Marine Resourcesch11.ppt
what is Non-Market Valuation
http://www.mdsg.umd.edu/programs/extension/valuation/handbook.htm
“A Practitioner’s Primer on Contingent Valuation.” John C. Whitehead, 2001
"Contingent Valuation as a Means of Valuing the Conservation of Coral Reefs: An Assessment of the Method." Nick Hanley
Monday, May 3 –
The Value of Coral Reef Quality to SCUBA Divers. (with Pete Schuhmann and Hazel Oxenford). Proceedings of the 11th International Coral Reef Symposium, Ft. Lauderdale, Florida, 7-11 July 2008
Tuesday, May 4 - Choice models as an alternative to contingent valuation.
How much are Tourists Willing to Pay for Beach Amenities? – Evidence from a Choice Modelling Experiment in Barbados, (Schuhmann and Casey)
Wednesday, May 5 - Choice models as an alternative to contingent valuation continued.
“Using Choice Experiments to Value the Environment.” Hanley et al. 1998
Thursday, May 6 - Leave for Washington D.C.
Friday, May 7 - Fly from D.C. to San Juan, Puerto Rico
Overnight in Luquillo - http://www.luquillosunrise.com/
Saturday, May 8 Fieldtrip to El Yunque
Introduction to Puerto Rico http://www.wri.org/publication/content/7899
Sunday, May 9 Ferry To Culebra - http://www.islaculebra.com/culebra-maps/attractions.php
http://www.tropicalpropertiespr.com/vpelicano.asp
Mangroves - http://www.fs.fed.us/global/iitf/pubs/ja_iitf_2007_lugo001.pdf
Tuesday, May 11 Corals
http://coris.noaa.gov/about/biology/
Wednesday, May 12 Corals http://www.box.net/services/ipaper_by_scribd/102/59330570/bdccb2/Primer_Simposio_Arrecifes_de_Coral_CIEL/shared/8h51iqvjiq
Thursday, May 13 Fisheries – “Towards Sustainability in World Fisheries,” Nature 2002.
Friday, May 14
Saturday, May 15
Sunday, May 16 - Return to Old San Juan
http://www.sheratonoldsanjuan.com/
Monday, May 17 –
Moving beyond the environment – the interface between development and environment.
http://www.rff.org/RFF/Documents/EfD-DP-09-02.pdf
Tuesday, May 18 -
Moving beyond the environment – the interface between development and environment.
Marine protected areas as a development tool
Wednesday, May 19 – Moving beyond the environment – the interface between development and environment. (draft of paper due.)
http://www.wri.org/publication/content/7853
Thursday, May 20 - Seminar 1-4PM
Friday, May 21 - Final Class / de-briefing (1 hour) festival on the green
Paper will be due by the end of the exam period.
APPENDIX A. THE PAPER ASSIGNMENT
An important aspect of economics is writing to communicate ideas. Albeit, an aspect that is often given little emphasis in undergraduate economics' courework. This class will emphasize writing. Seventy five percent of the grade for this course will be determined by three writing assignments. Therefore, we will spend a significant amount of time talking about the writing process.
Ideas are the life-blood of any discipline and the ability to communicate these ideas in written fashion is what allows for the dissemination of these ideas. This is not to say that all ideas should be written down, but at least this way we can determine which are worthy of publication and which are relegated to the trash heap.
When I write a paper I like to think about five distinct sections of the paper.
I. a. Introduction
b. Background
II. Literature Review / Theory
III. Methods / Data
IV. Model and Results
V. a. Discussion
b. Conclusion
Introduction
The introduction needs to tell the reader about the problem or issue to be
addressed. It MUST be interesting, if it is not, people will not read the rest
of your work. It should explain the general field in which you are working and
what makes your study/thinking important. This is A of the introduction. Part B
is the background. This is where you get to fill in some of the detail and
really get the reader hooked on your topic.
Literature Review / Theory
Here you describe what others have done in order to focus your work and keep
from "reinventing the wheel." We learn from the body of work that precedes us.
Please organize it from general to specific, so that you take increasingly
detailed looks at an ever narrowing range of ideas, action and/or products.
Make sure that you do not rely solely on the internet (it is ephemeral at
best). At least one of your sources should be the seminal or groundbreaking
works in the field. Please cite your book and journal references as follows
(Harbor, 1999). Or if Casey (1999) said it. For books, please give the page
number (Harbor, 1992, p. 42). For internet sites, give the organization and
year, and put the full address in the citation. Use MLA or APA style for the
references cited (See "A writer's reference, your Official W&L style guide).
Methods / Data
This is the "road map" that you're going to write. Tell us what, how, etc.
you're going to do to get "results" It might be how you're going to compare
different case studies, how you're going to sample flowers, how you're going to
interview stakeholders, etc. It should be based on the methods designed by
others as given in your literature review.
Model and Results
This is where you estimate your model and present the results. First, you
will want to present a Y = a + bX + e. This should follow directly from your
theory and data. Then, its "Just the facts, ma'am." You tell the reader just
what should be obvious from the estimation of your model. Offer no
interpretation, per se. Explain the ins and outs, but refrain from valuing the
results.
Discussion
Here's where you can finally use the words "I think." Run with the results
in terms of what they mean to you, how you would act based on this information,
how what you learned differs from or compares with what others have learned from
their work. In the discussion, you have the opportunity to advocate for policy
and/or programming changes.
References Cited
Paper 1: 4 to 5 pages in length consisting of the intro/background. (section I)
Paper 2: 5-7 pages in length consisting of the theory and methods. (sections II and III)
Paper 3: 7-10 pages in length consisting of the model and results and conclusion. (sections IV and V)
One last comment. It is usually pretty easy to tell when someone has waited until the last moment and thrown a paper together the night before. My recommendation is NOT to wait until the night before. Also, unless you are a very gifted writer, you really shouldn't expect anything better than a C- on a first draft. So, start writing early, share your drafts with friends, me, or the writing center. Plan to rewrite your paper at least once before you turn it in.
APPENDIX B. EXAMPLE OF AN EXAM QUESTION
Assume the “market” for coral habitat preservation is in equilibrium at price (Po), and hectares preserved at (Ho). In order to receive full credit for your answer you must use graphs in combination with your explanation.
Why is this not socially optimal?
What policy would you recommend for establishing a socially optimal level of habitat preservation?
Identify the change in consumer surplus from your policy being implemented.
What does this change measure?
APPENDIX C. DISCUSSION LEADER GUIDANCE
5 questions to guide a critical reading of a scientific paper.
First, What is the question?
Second, What is the guiding theory to bring about a potential response to the question?
Third, How is the theory applied?
Fourth, How did things turn out?
Fifth, Has the question been answered, and can we draw any conclusions?
or
1. What is the purpose of this paper?
To serve as a guide for multiple stakeholders who are interested in understanding the economic and social value of MPAs.
2. How did the authors go about achieving the goals laid out?
First they provide background on the ecology and institutional setting of MPAs. Then they lay out a framework for discussing the costs and benefits to extractive users, non extractive users and management. They conclude with a little Political Economy, a CBA and addresses issues beyond efficiency like equity and fairness.
3. Did the authors meet the objectives?
I think so – they set up a cost benefit matrix for us to consider in the context of multiple stakeholders. They address the inherent difficulties in doing so and leave us in a position to better understand why we might want to use MPAs, where we might want to use them and how to use them.
APPENDIX D. Additional suggested reading material
Field, Barry C., and Martha K. Field. 2002. Environmental Economics: An Introduction. 3rd Ed. McGraw-Hill Irwin.
Holmes, Thomas P., Bergstrom, John, Huscar, Eric, Kask, Susan, and Fritz Orr III. 2004. Contingent Valuation, net marginal benefits, and the scale of riparian ecosystem restoration. Ecological Economics (49) 19-30.
Kolstad, Charles D. 2000. Environmental Economics. Oxford University Press, New York.
Morgan, Cynthia and Nicole Owens. 2001. Benefits of water quality policies: the Chesapeake Bay. Ecological Economics (39), 271-284.
Prato, Tony. 1998. Natural Resource and Environmental Economics. Ames, Iowa The Iowa State University Press.
Carson, R.T. and R.C. Mitchell. 1993. The value of clean water: the public's willingness to pay for boatable, fishable, and swimmable water quality. Water Resources Research 29:2445-2454.
Crutchfield, S.R., J.C. Cooper, and D.R. Hellerstein. 1997. Benefits of safer drinking water: the value of nitrate reduction. U.S. Department of Agriculture Economic Research Service Publication AER-752. Washington, D.C. 15 pages.
Jordan, J.L. and A.H. Elnagheeb. 1993. Willingness to pay for improvements in drinking water quality. Water Resources Research 29:237-245.
Pigram, J. 1983. Outdoor Recreation and Resource Management. St. Martin's Press, N.Y. 262 pages.
Schultz, S.D. and B.E. Lindsay. 1990. The willingness to pay for groundwater protection. Water Resources Research 26:1869-1875.
“Valuing the Environment for Environmental Decision Making” – James R. Kahn Ch.4, pp. 87-127.
“A Practitioner’s Primer on
Contingent Valuation.” John C. Whitehead, 2001
"The Economic Value of Hiking:
A Travel Cost Analysis of the Grandfather Mountain Wilderness Preserve." James
F. Casey, 1994.
"Nonmarket Economic User Values of the Florida Keys/Key West." Leeworthy and Bowker, 1997.
Ecotourism and Sustainable Development: Who owns Paradise? Martha Honey. Island Press,1999.
Transforming Coral Reef Conservation in the 21st Century:Achieving financially sustainable networks of marine protected areas." Belinda Morris, April 2002
"Lexicographic Preferences and the Contingent Valuation of Coral Reef Biodiversity in Curacao and Jamaica." Spash et al.
"Contingent Valuation as a Means of Valuing the Conservation of Coral Reefs: An Assessment of the Method." Nick Hanley
"The Economic Value of Hiking: Further Considerations of Opportunity Cost of Time in Recreational Demand Models." (James F. Casey, Tom Vukina and Leon Danielson), Journal of Agricultural and Applied Economics. 27 (2), December 1995: 658-668.
"International Ecotourism and the Valuation of Tropical Rainforests in Costa Rica." Menkhaus and Lober, Journal of Environmental Management. 1996.
"Valuing Ecotourism in Madagascar." Maille and Mendelsohn, Journal of Environmental management. 1993.
“The Contingent Valuation Debate: Why Economists Should Care.” – Paul R. Portney, The Journal of Economic Perspectives, Fall 1994, pp. 3-17.
“Valuing the Environment through Contingent Valuation.” – W. Michael Hanemenn, The Journal of Economic Perspectives, Fall 1994, pp. 19-43.
“Contingent Valuation: Is Some Number Better than No number?” – Peter A. Diamond & Jerry A. Hausman, The Journal of Economic Perspectives, Fall 1994, pp. 45-64.
"Was the NOAA Panel Correct about Contingent Valuation?” - Richard T. Carson et al. Discussion Paper, Resources for the Future, 1996. pp. 1-28.
“Valuing a Global Environmental Good” - Randall A. Kramer and D. Evan Mercer, Land Economics, May 1997, pp. 196-210.
“Part-Whole Bias in Contingent Valuation: Will Scope Effects be Detected with Inexpensive Survey Methods?” – John C. Whitehead et al. Southern Economic Journal, July 1998, pp. 160-168.
FISHERIES RESOURCES ON THE WEB
Recent Articles
Literature Review
UNCW-John Whitehead
Trade and Fisheries
http://www.orst.edu/Dept/IIFET/
Resources for U.S. Fisheries - General
http://www.noaa.gov/fisheries.html
http://www.nmfs.noaa.gov/
http://www.fisheries.org/
Regional Data
http://www.psmfc.org/efin/
Northeast Fishery Data
Gulf Coast
International Resources
http://www.port.ac.uk/courses/postpros/fisheco.htm
Australia
- Forests and Fish
University
of British Columbia
International
- FAO
Appendix E - Additional Travel Information
Weather
The weather throughout the region will be generally hot and sunny.We will be visiting in the end of the dry season. We can expect daytime temperatures in the high 80s, maybe low 90s, and night time low temperatures in the low 70s. There is the possibility of an El Norte this time of year, which is a cold weather front from the north. These are more common in December and January but can happen this time of year. Typically it consists of one day of rain, and another day of cool weather.During an El Norte, day time high temperatures can be in the low 60s and a nice rain jacket and thick sweatshirt is generally sufficient.
Clothing
Bring appropriate clothing for hot days, warm evenings, and for rain.You will want to have lightweight long-sleeved shirts and pants for protecting yourself from the sun and for when hiking through light brush.If insects like your flavor, pants should be tucked into your socks.You will also want comfortable clothing for walking around, a swimming suit, hat, teva type sandals, lightweight hiking boots or sturdy shoes.
Comfortable footwear is essential.Since we are doing such a wide-range of activities, comfort and versatility is the key.
Health Precautions
IF YOU ARE ALERGIC TO BEE STINGS BRING APPROPRIATE MEDICATION AND CARRY IT WITH YOU AT ALL TIMES.
Currently no vaccinations are required for travel in Mexico.Please consult your physician.As with most travel to the tropics, it is recommended that tetanus vaccinations be current and to have protection from hepatitis A. For comprehensive information please contact the Center for Disease Control and Prevention on the Internet at www.cdc.gov or by phone at 404-332-4559.Again, consult your physician.
We will be providing purified water on the vans and at the hotel rooms.I also recommend bringing along your preferred brands of non-prescription medicine for headache and body pains, allergies, head colds, indigestion, etc.
Insect Protection
Every participant should bring an adequate supply of insect repellent. An application of lotion each morning in addition to spraying your clothing is recommended.I rarely have problems with insects.
Sun Protection
SUNSCREEN, SUNSCREEN, SUNSCREEN, I can't stress it enough.
Be sure to bring a pair of sunglasses, sun hat and sunscreen.
Suggested Packing List
lightweight hiking pants
lightweight long-sleeved shirts
sunscreen lotion
shorts
hat
insect lotion
lightweight hiking boots or sturdy/stable shoes.
teva type sandals
personal toiletries
day-pack
light sweater or jacket
rain gear
umbrella (optional but very handy)
swimsuit
flashlight and/or headlamp
pocketknife
sunglasses
binoculars
camera
batteries
hand razor, we will have parts of the trip where we will have generator power only and you will not be able to use your electric razors
name tag on your luggage
Use common sense, be comfortable.