−To add to Econ. 122, PERC video: http://www.youtube.com/user/PERCtv
− (MacAskill) http://www.youtube.com/watch?v=Z19zFlPah-o;
− (Extreme skiing): http://www.metacafe.com/watch/115442/skiing_extreme/;
− Extreme skiing & snowboarding: http://www.youtube.com/watch?v=hMhBbmE92v8;
− Mtn. unicycling: http://www.youtube.com/watch?v=wOLQtHl2Coc;
− BP spill: http://www.youtube.com/watch?v=2AAa0gd7ClM;
− Dog and orangutan: http://www.youtube.com/watch?v=Q9OfK1HfPWg&playnext=1&list=PL5115CCD9C23FBF6C;
− TimberJack machine: http://www.youtube.com/watch?v=CD2V8GFqk_Y;
− (Sheep lights) http://www.youtube.com/watch?v=qniwI2hNhDs;
Natural Resource Economics
Economics 122/Env. Studies 179
Robert Deacon Winter 2011
TA & office hrs: Chris Goodwin, North Hall 2053, firstname.lastname@example.org
Office hours: Monday 10:0-12:00; Friday 11:00-12:00.
Sections: M 7:00- 7:50 Psych 1902
M 5:00- 5:50 SH 1430
M 6:00- 6:50 Phelp 3515
office hours: Wed, 9:00-11:00; 3040
North Hall, email@example.com.
Exams: Midterm: Monday, Feb. 7 (35%)
Final: Wed., March 16, 12:00-3:00 (50%); Review during 12:00-1:00.
(Homework problems count for the other 15%)
See the lecture schedule below for times of exam review sessions.
We will examine markets for natural resources, including minerals, fossil fuels, forest resources, and fisheries. We will also examine economic issues related to biodiversity and deforestation. Natural resource abundance is determined by physical processes and a general understanding of these processes is necessary for correct economic analysis. For this reason the study materials present biological models for fisheries and forests and incorporate geological concepts in examining minerals. Ownership rights to natural resources often are not clearly defined. In these cases the interests of some potential resource users will not be reflected in market outcomes and the scramble to acquire these un-owned assets may be wasteful. Finally, the use of natural resources is ultimately linked to the release of waste products into the environment, so there are considerations of environmental degradation. These themes appear at various points in the course.
Intermediate microeconomics (Econ. 100A & B or Econ. 104A & B) is required. Two sets of concepts are used repeatedly: welfare economics (concepts of Pareto efficiency, externalities and property rights) and intertemporal choice (interest rates, investment decisions and present value). These concepts will be reviewed briefly in class and in Section II of the readings, but the time spent will be minimal. Students who completed their intermediate microeconomics courses some time ago should review as needed.
Exams, Homework Problems and Grading:
Exams. Exam dates and weights used in grading are listed above. Both exams will consist of objective questions and problems (e.g., T/F, multiple choice, solve a problem and fill in the blank, etc.). Old exams with sample answers are available on line as study aids (links follow). Unlike the exams for this quarter, these sample exams require written explanations. (Midterm Exam Winter 2008, Final Exam Winter 2008). No make-up exams will be given. Students who miss the midterm may substitute a term paper in its place. Please see me for term paper guidelines if you choose this option.
Numerical grades will be assigned to your exams and home work problems and these correspond to letter grades. Here is the grading scale used.
Homework problems. Homework problems are available online (homework problems) and will be collected and graded during the quarter. These are mandatory and performance on them constitutes 15% of the course grade. Homework problems will also give you practice answering the types of questions you will find on exams. If homework problems are submitted late, 5 points (out of 20) will be deducted for each day late including weekend days. I will drop your lowest homework grade when computing your grade for the course. Here is file containing some data for Homework problem #2 that will be useful.
Balsdon, E., and R. Deacon, "Economics of Exhaustible Resources, International Encyclopedia of the Social and Behavioral Sciences, Orley Ashenfelter (editor for economics,) Elsevier Sciences Ltd., 2002.
A.V. Kneese, et al., "Economics of the Environment: A Materials Balance Approach", in Enthoven and Freeman, Pollution, Resources, and the Environment, Norton, 1973.
Tietenberg, Environmental and Natural Resource Economics, 7th Ed.
Chapters 2 and 4. (Tietenberg Chaps 2 & 4) Note: For further depth, review relevant sections of your intermediate microeconomics text, e.g., H. Varian, Intermediate Microeconomics.
J.W. Griffin and H.B. Steele, Energy Economics and Policy, Chapter 3. "Criteria for Efficient Dynamic Resource Allocation."
Borenstein, 2005. ANWR
Oil and the Price of Gasoline, Energy Notes, Vol. 3, Issue 2,
Barry Field, 2005. The Economics of Biodiversity Preservation. Chapter 19 in Barry Field, Natural Resource Economics, Waveland Press.
R.T. Deacon, "The Simple Analytics of Forest Economics", in R.T. Deacon and M.B. Johnson, eds., Forestlands, Public and Private, Ballinger, 1986.
P. E. Kauppi, et al Returning forests analyzed with the forest identity Proceedings of the National Academy of Sciences, Nov. 14, 2006. 17574-17579.
A. Pfaff, et al, Policy
Impacts on Deforestation: Lessons Learned
from Past Experiences
Tietenberg andf Lewis, Environmental and Natural Resource Economics, 8th Edition, Chapter 14, Common-Pool Resources: Fisheries .
T. Deacon. Creating
Marine Assets: Property Rights in Ocean Fisheries, PERC Policy Series No.
43, Property and