ECON 271: Economics of Natural Resources & the Environment (6 cr.)
Spring Term 2012
Instructor:
Theresa Bauer
Office:
Phone:
E-mail:
Office Hours:
Willis Hall 303
Ext. 4103
[email protected]
Mondays 3:00-4:00 p.m.
Wednesdays 2:00-3:00 p.m.
Fridays by appointment
Class Times:
MW 12:30-1:40 p.m.
F 1:10-2:10 p.m.
Class Location: Willis Hall 205
Class Website: http://www.econ3xx.college.edu/
e-Resources: http://wps.aw.com/aw_tietenberg_envnatrese_9/204/52390/13411993.cw/index.html
COURSE OVERVIEW
Course Description & Objectives
We never know the worth of water till the well is dry. ~Thomas Fuller, 1732
Whether we are valuing environmental goods or discussing air and water pollution, this course will
examine the economics of natural resources and the environment, which simply stated is the study
of our footprint on the environment. This course will integrate economic principles and traditional
analysis methods with current environmental and resource issues (e.g. aquatic invasive species,
climate change and greenhouse gases, biodiversity, fishing rights, and off-shore drilling). In
particular, students will be introduced to the ways in which economists think about the environment
and our natural resources in order to balance the benefits and costs of improving the quality of our
environment.
This course will center on the sustainable and efficient use of renewable (e.g. forests and fisheries)
and non-renewable (e.g. petroleum oil and minerals) resources, optimal levels of pollution (e.g. air
and water), and related policy issues. The goal of this course is to allow you to gain the tools and
techniques necessary to be able to apply the “economic way of thinking” to our environment and
our natural resources. Specifically, upon completion of this course you will:
 Be able to demonstrate an understanding of: (1) time discounting and net present value
(NPV) in resource valuation; (2) the role of property rights and externalities in market
failures; and (3) the pros and cons of various pollution control policies;
 Have learned how to solve inter-temporal cost-benefit and cost effectiveness analyses (i.e.
cost-benefit analyses over multiple time periods);
 Be able to evaluate the consequences of various market structures on the optimal paths of
non-renewable resource extraction and renewable resource harvesting;
 Be able to critically analyze information in the context of pollution prevention and pointsource pollution control.
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Readings
The required textbook for this class, which can be found at the Carleton Bookstore or online, is
Tietenbert, Tom and Lynne Lewis. Environmental & Natural Resource Economics. 9th ed.
Boston: Pearson, 2012. Print. (ISBN 978-0-13-139257-1)
Additional readings relating to course topics may be assigned throughout the semester. These will
be distributed by email or posted to the course website.
Feedback on Learning
Your overall final assessment will reflect your ability to think and behave like an environmental and
natural resource economist. There will be a variety of opportunities that will provide feedback on
your learning. The relative weight of each feedback category will be determined by consensus
during the second class. (The weight of Exam 2 must be greater than or equal to Exam 1; Weights
must equal 100%).
Class Participation:
Problem Sets (4 total):
Quizzes (2 total):
Capstone Assignment:
Exam 1 (Wednesday, April 25):
Exam 2 (Monday, June 4, 8:30-11:00 a.m.):
2
8% - 15%
12% - 20%
10% - 20%
15% - 25%
20% - 30%
25% - 35%
COURSE TIMELINE
Class Schedule
The course will be divided into 3 sections: An introduction to the economic tools, topics in natural
resource economics, and topics in environmental economics. Section lengths will vary slightly.
Section 1: Introduction – Economic principles as they apply to resources & the environment.
This section will cover the basic economic principles that will be necessary to analyze, explain,
and critique environmental policies and resource use decisions.
Monday, March 26
 Course Overview
 Chapter 1: Visions of the Future
Wednesday, March 28
 Chapter 2: The Economic Approach
Friday, March 30
 Discussion
Monday, April 2
 Chapter 3: Evaluating Trade-Offs
 Chapter 3 Appendix: The Simple Mathematics of
Dynamic Efficiency
Wednesday, April 4
 Chapter 4: Valuing the Environment: Methods
Friday, April 6
 Discussion
Section 2: Natural Resources – Why are resource decisions made the way they are?
Natural resource economics focuses on resource valuation, economic incentives, and the
institutional arrangements that will give us the utilization and conservation decisions we want.
Monday, April 9
 Chapter 5: Dynamic Efficiency and Sustainable Development
 Chapter 5 Appendix: The Mathematics of the Two-Period Model
Wednesday, April 11
 Chapter 6: Depletable Resource Allocation
Friday, April 13
 In-Class Quiz (Chapters 1 – 6)
 Discussion
Monday, April 16
 Chapter 7: Energy
Wednesday, April 18
 Chapter 9: Replenishable but Depletable Resources
Friday, April 20
 Discussion
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Monday, April 23
 Review for Midterm; Catch-up (if necessary)
Wednesday, April 25
 MIDTERM EXAM (Chapters 1 – 7, 9)
Friday, April 27
 Chapter 12: Storable, Renewable Resources
Monday, April 30
 No class: Midterm Break
Wednesday, May 2
 Chapter 13: Common-Pool Resources
 Midterm Feedback
Friday, May 4
 Chapter 13 – Continued; Discussion
Section 3: Environmental Economics – Not all markets work perfectly!
Environmental economics examines environmental policies and their impacts on economies at
local, regional, and global scales.
Monday, May 7
 Chapter 14: Economics of Pollution Control
Wednesday, May 9
 Chapter 15: Stationary-Source Air Pollution
Friday, May 11
 Discussion; Capstone Assignment Groups
Monday, May 14
 Chapter 16: Climate Change
Wednesday, May 16
 In-Class Quiz (Chapters 12 – 16)
Friday, May 18
 Capstone Assignment Groups: Work Day
Monday, May 21
 Chapter 17: Mobile-Source Air Pollution
Wednesday, May 23
 Chapter 18: Water Pollution
Friday, May 25:
 Discussion
Monday, May 28
 Capstone Assignment Presentations
Wednesday, May 30
 Course Wrap-Up and Evaluations
FINAL EXAM: Monday, June 4th, 8:30am - 11:00am. Room: TBA
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Class Calendar
Chapters are expected to be read before class of the date given. Similarly, assignments are due at
the beginning of class of the date given. The Class Calendar is tentative and subject to change
during the term. If there are any changes to the Class Calendar, an announcement will be made in
class and a new Class Calendar will be emailed and/or posted to the class website.
Class
Date
Chapter(s)
1
Mar. 26
1
Course Overview and Introduction
2
Mar. 28
2
Property Rights, Externalities, Public Goods, and
Environmental Problems
3
Mar. 30
4
Apr. 2
3, 3A
Benefit-Cost Analysis and Applications
5
Apr. 4
4
Methods of Environmental Valuation
6
Apr. 6
7
Apr. 9
5, 5A
8
Apr. 11
6
9
Apr. 13
10
Apr. 16
7
Depletable and Renewable Energy Resources
11
Apr. 18
9
Water Scarcity, the Efficient Allocation, and
Potential Remedies
12
Apr. 20
Discussion
13
Apr. 23
Review for Midterm & Catch-up
14
Apr. 25
15
Apr. 27
May 2
17
May 4
18
May 7
Assignment Due
Signed Course
Contract
Discussion
Discussion
Two-Period Models and Intertemporal Fairness
Homework 1
Efficient Intertemporal Allocations of Depletable
Resources
Quiz & Discussion
MIDTERM EXAM
12
Apr. 30
16
Topics
Forest Harvesting Decisions & Perverse Incentives
NO CLASS: MIDTERM BREAK
13
Fisheries: Efficient; Midterm Exam Feedback,
Midterm Feedback
Fisheries: Public Policy
14
Efficient Allocation of Pollution and Pollution
Policies
5
Homework 2
19
May 9
15
Stationary Sources of Air Pollution
20
May 11
21
May 14
22
May 16
Quiz
23
May 18
Presentation work day
24
May 21
17
The Economics of Mobile-Source Pollution
25
May 23
18
Water Pollution: Problems and Policies
26
May 25
Discussion
Homework 4
27
May 28
Group Presentations
Group Write-up
28
May 30
Course Recap and Wrap-up
Discussion; Presentation groups
16
Climate Change: the Science, Negotiations, and
Controversies
Homework 3
FINAL EXAM: Monday, June 4th, 8:30am - 11:00am. Room: TBA
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COURSE POLICIES
Class
Participation
Actively engaging with the material is the best way to learn it. Therefore you will
be expected to actively participate in the daily class discussions. This includes, but
is not limited to: bringing unique viewpoints to topics, leading a discussion or case
study, or introducing the class to relevant news articles. You may also be asked to
work with a partner or a small group on an activity during class.
Problem Sets
You will be responsible for completing four problem sets that consist of numerical
calculations, drawing graphs and diagrams, short answers, and analyses of current
issues. These will be used to assess your ability to understand, examine, analyze
and critique course material and relevant current topics. You may work together
with 2-3 other students, in fact, this is encouraged‼ However, you must write up
your own answers independently and list all peers that you collaborated with.
Capstone
Assignment
You will be assigned to a group of 3-4 students. Parameters of the assignment will
be provided later. Your grades for the group projects are a function of:
 Your group’s write-up (graded by the Instructor)
 Your group’s in-class presentation (evaluated by your classmates and the
Instructor)
 Your contribution to the group (evaluated by your fellow group members)
Student Role
You are expected to come to each class on time and be fully prepared to discuss
the current day’s readings. You are expected to have an open mind toward the
topics discussed, and to treat your peers and your instructor with professionalism
and respect. Additionally, you are expected to complete all assignments by their
assigned due date.
Instructor
Role
As your instructor, you can expect that I will: treat you with respect and
encouragement, create an atmosphere conducive to learning, provide a safe
environment for you to ask questions so that you may fully grasp the material of
the course, and provide constructive feedback on your performance.
Use of
Personal
Electronic
Devices in
the
Classroom
This is a CELL PHONE FREE ZONE. Please turn your cell phone off (not
vibrate) before entering the classroom. Since Economics relies on drawing graphs,
making numerical calculations, etc. using laptops and tablets are not as convenient.
If you must use an electronic device for taking notes, please see me before the
beginning of the second class meeting1. Additionally, you will be expected to
email me your notes at the end of each class period.
Attendance
Policy
This course will rely on team work, in-class discussions, and active learning
activities. As a result, missing classes not only negatively affects your ability to
learn the material, but it negatively affects the learning process for your peers. If
you will need to miss a class, I ask that you please inform me in writing (in person
or via email) prior to the day of the class that you will miss.
You will also be required to sign a contract that you will not use the Internet (e.g. web surfing, emails, Facebook,
Twitter, instant messaging, and other social networking sites) during class.
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Late Work
Policy
It is important for your learning and your ability to participate in the classroom
community that you are prepared and stay on top of the assignments of the
course. Late work is detrimental to this learning process and can quickly become
unmanageable with newer assignments. You will receive only partial credit for
homework submitted after the beginning of the class period on the day an
assignment is due. Minimal or zero credit will be given for assignments turned in
after the answer key has been posted.
Homework
One of the biggest goals I have for you is to be able to think critically about the
Resubmission course material. Therefore, if points are subtracted from an answer you believe is
Policy
correct, you are allowed to challenge the grading of one question per assignment.
This must be submitted in writing as a clear, structured, and well-articulated
argument before the next class period. The original assignment must accompany
this resubmission, as well as references to supporting documents and/or materials.
Missed
Exams and
Retakes
You will not be allowed to retake exams or make up missed exams. Missing the
final exam will result in an “Incomplete” grade. The midterm and final exam
times and locations are listed in this syllabus; please plan your schedule
accordingly.
Incomplete
Coursework
Policy
If a student does not complete the required coursework within the timeframe set
forth in this syllabus the student will receive a letter grade F. Only under
extraordinary circumstances will an Incomplete (I) be given, which will only be
granted after the student, instructor, and Department Chair have agreed upon a
written timetable for the completion of all outstanding coursework.
Academic
Dishonesty
An act of academic dishonesty is a serious offense in a college community. By
seeking credit for work which is not his or her own, a student takes unfair
advantage of fellow students, who accept their limitations, and of teachers, who
trust that the work received is the student's. Dishonesty in academic work,
particularly in the form of plagiarism, also defeats the process of self-discovery
which is the heart of a liberal education. People establish their integrity and
personality only as they learn to distinguish what is significantly their own from
what belongs to another, only as they learn to value their own work, including its
limitations, in relation to the work of others. As a scholar, finally, one should be
generous in acknowledging the work of other scholars, for their work makes
possible one's own.
At Carleton College, an act of academic dishonesty is therefore regarded as
conflicting with the work and purpose of the entire College and not merely as a
private matter between the student and an instructor; all cases involving such
dishonesty are referred to the Academic Standing committee for appropriate
action. This action can vary from a grade of Unsatisfactory in the given piece of
work to a recommendation of permanent dismissal from the College in cases of
repeated or serious offenses.
You can find information about academic dishonesty at:
http://apps.carleton.edu/campus/doc/honesty/
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After reading the entire syllabus, please detach this page, sign it, and
turn it in at the beginning of the class on Wednesday, March 28.
I have read the syllabus for Economics 271-00 and I understand my obligations for the course.
Signature: _________________________________________ Date: _________________
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