Econ 235: Environmental and Resource
Economics
Lectures:
1. Lecture One
2. Lecture Two
3. Lecture Three
4. Lecture Four
5. Lecture Five
6. Lecture Six
7. Lecture Seven
8. Lecture Eight
9. Lecture Nine
10. Lecture Ten
Syllabus (pdf
version)
ECON. 235: ENVIRONMENTAL AND RESOURCE ECONOMICS
(FALL 2003)
Instructor: Ahmed M. Hussen
Office: Dewing 306A
Telephone: Ext. 7025; email address:
hussen@kzoo.edu
Office Hours: T, W & F (2:30 to 3:30p) or by
APPOINTMENT
COURSE DISCRIPTION AND OBJECTIVES:
This is an introductory-level course in environmental and resource
economics. It is primarily designed for sophomores and juniors
who wants to study environmental and resource concerns with an
interdisciplinary focus. More specifically, the course
attempts to incorporate basic principles of both microeconomics and
ecology that are essential for a comprehensive understanding and
critical assessment of the human’s historical struggles to “coexist”
with the natural environment. These ecological and economic
principles are also used to shed light on some contemporary and
controversial environmental policy issues.
Right from the outset it should be understood that this course is not
aimed at a study of a specific environmental issue. Instead, the
course intends to delve into the theoretical underpinnings that are
critical to a clear understanding of most contemporary environmental
and natural resource problems. Thus, the emphasis is on a
systematic development of theoretical principles and conceptual
frameworks essential for a comprehensive analysis of environmental and
natural resource issues and the assessments of alternative
environmental policy instruments, in general.
The course is organized with four major objectives in mind: (1)
To introduce students to the basic economics and ecological principles
and theories essential to the understanding of a wide variety of
contemporary environmental and natural resource management
problems. (2) To acquaint students with competing public
policy instruments that could be used to ameliorate pressing local,
national and global environmental and resource concerns. (3) To
carefully and systematically examine the nature of ecological limits
and their implications to long-term human material progress, that is,
sustainable development. (4) To provide students with a forum to
discuss, in both formal and informal settings, major controversial and
contemporary environmental issues and problems.
Prerequisite: Eco. 105.
REQUIRED TEXT AND OTHER READINGS
Hussen, Ahmed, M., Principles of Environmental Economics:
Economics, Ecology and Public Policy, Routledge, 2000.
Others: Several other supplementary reading assignments are
placed on reserve in the Library. A complete list of the
reading materials and web sites of interest for this course is provided
in the last section of this syllabus.
COURSE OUTLINE:
PART I: Analytical Foundation of Environmental and
Resource Scarcity: The Neo-Classical Perspective (week
1)
[Reading: Intro., pp. xxvii – xxxi; Chpt. 1, pp.
3-16; Chpt. 3, pp. 54-59]
∑ What is environmental and resource economics all about?
∑ The concept of resources and resource scarcity: The
neo-classical economic perspective
PART II: The Concept of Natural Resources: An
Ecological Perspective
(week 2) [Reading: Chapter 4, pp. 65-86]
∑ Ecology: The economics of nature
∑ The Ecosystem: structure and function
∑ Ecodynamics: succession, equilibrium, stability, resilience,
complexity
∑ The Laws of Matter and Energy
∑ The Basic Lessons of Ecology
PART III: Fundamentals of the Economics of
Environmental Resources
(Week 3)
[Reading: Chapter 5, pp. 87-112]
∑ The Economic Process and the Assimilative Capacity of the Natural
Environment
∑ Common Property Resources, Externalities and Market Failure
∑ Internalizing Externalities: The Pigouvian Tax
∑ The Macroeconomic Effects of Environmental Regulations
PART IV: The Economic Theory of Pollution and Its
Control (weeks 4& 5)
[Reading: Chapters 10, 11,
12, & 13; pp. 199 – 286]
∑ The Determinants of the Optimal Level of Pollution and Their
Implications
∑ Alternative Pollution Control Policy Measures
∑ The Challenges of Controlling Transboundary Environmental Pollution
PART V: Valuing the Environment (week 6
& 7)
[Reading: Chpts. 14 & 15; pp. 287 – 331]
∑ The Various Economic Methods for Measuring Environmental Benefits
∑ Cost-Benefit Analysis of Environmental Projects
∑ Intergenerational equity
∑ Other Methods of Valuing the Environment
PART VI: Natural Resource Scarcity and the Limits to
Economic Growth
(weeks 8 & 9) [Reading:
Chapters 6, 7, 8 and 9; pp. 113-200]
∑ The Malthusian Growth Doctrine
∑ The Neoclassical Growth Paradigm
∑ The Ecological Economics School Perspective
∑ Sustainable Economic Development
PART VII: Population, Development and Environmental
Degradation in the Developing World (Week 10)
[Reading: Chapter 18, pp. 395-419]
∑ Population-Resource-Environmental Interrelationship
∑ Globalization, Sustainable Development and Poverty Alleviation
∑ Sustainable Development Practices and Strategies in the Developing
World
∑ The Johannesburg Conference on Sustainable Development
GRADING POLICIES: The final grade for this
class will be computed on the
following basis:
Midterm Exam
30%
Final Exam
40%
Paper (Project)
20%
Class Discussion 10%
100%
Both the mid-term and the final examinations will
consist of objective questions and short essays designed to test your
understanding of theoretical concepts, models, and factual materials
covered in class lectures and assigned readings. No make-up exam
will be given.
The classroom project consists of a ten to fifteen
pages paper dealing with some contemporary and pressing environmental
and natural resource issue(s). The scope of the project can be
local, regional, national, or global. An early start of
this project is strongly recommended.
The grade for “class discussion” is awarded on the
basis of class attendance and the efforts demonstrated to participate
in class discussions.
READING LIST:
This reading list contains articles and book
chapters that are placed on reserve in the library for the purpose of
class discussions. Most of these are classic articles and a must
reading!
For Class Discussions:
Boulding, K.E., (1966) “The Economics of the Coming Spaceship
Earth,” in H. Jarrett (ed.) Environmental Quality in a Growing Economy,
Washington D.C.: Johns Hopkins University Press.
Coase, R. (1960) “The Problem of Social Cost,” Journal of Law and
Economics 3: 1-44.
Georgescu-Roegen, N. (1993) “The Entropy Law and the Economic Process,”
in H. E. Daly and K. ‘Townsend (eds) Valuing the Earth: Economics,
Ecology, Ethics, Cambridge, Mass.: MIT Press.
Goeller, H.E. and Weinberg, A. M. (1976) “The Age of Substitutability:
What Do We Do When the Mercury Runs Out?” Science 191: 683-9.
Hardin, G. (1968) “The Tragedy of the Commons,” Science 162:
1243-8.
Krutilla, J. V. (1967) “Conservation Reconsidered,” American Economic
Review 57, 4: 787-96
Solow, R. M. (1974) “The Economics of Resources or the Resources of
Economics,” American Economic Review 24: 1-14.
----(1993) “Sustainability: An Economist’s Perspective,” in
R. Dorfman and N. Dorfman (eds.) Selected Readings in
Environmental Economics, 3rd edn., New York: W.W. Norton.
White, L., Jr. (1967) “The Historical Roots of Our Ecological Crisis,”
Science 55: 1203-7.
WEB SITES OF INTEREST:
1. www.wri.org/
The homepage for World Resource Institute (WRI).
WRI is a highly
reputable environmental think tank. It provides a wealth of
information,
ideas and solutions to emerging global and environmental problems (such
as, climate change, biodiversity, habitat destruction, over fishing,
and
so on).
2. www.rff.org/
The homepage for Resources for the Future (RFF),
Inc. An organization
known for its non-partisan high quality environmental and natural
resource
economics research and policy analysis. RFF receives
a very high mark for its publications on damage cost to the environment
and health (externalities) and cost-benefit (as well as
cost-effectiveness)
analysis. Although non-partisan the publications of this organizations
indicates strong methodological affiliation with mainstream economics.
3. www.prb.org/
The homepage for Population Reference Bureau
(PRB). The PRB prides
itself for providing timely and objective information on U.S. and
international
population trends and their implications.
4. www.unfpa.org/index.htm
The homepage for the United Nations Population Fund
(UNFPA).
The UNFPA is the largest internationally funded source of population
assistance
to developing counties. Excellent source of information relating
to issues on population and development, reproductive health including
family planning and sexual health, gender equality and women’s
empowerment.
5. www.epa.gov/
The homepage for the United States Environmental
Protection Agency (EPA).
The EPA was established in 1970 with a mandate to monitor, set and
enforce
environmental standards that are consistent with ensuring the
protection
of the natural environment. This website is an excellent source
for
the latest information in environmental policies in the United States.
6. www.unep.org/
The homepage for the United Nations Environment
Programme (UNEP).
Contains invaluable information on international environmental legal
instruments,
conventions, and research reports on the state of global environment.
7. www.energy.gov/
The homepage for the United States Department of Energy
(DOE).
A good source for energy data, such as efficiency and productivity of
energy
use, energy prices, and alternative energy technologies. It also
provides information on the environmental impacts of energy, energy
conservation,
and the latest energy policy pronouncements of the United States
government.
8. www.undp.org/
The homepage for the United Nations Development
Programme (UNDP).
The UN’s principle provider of development advice, advocacy and grant
support.
The website provides valuable information on international efforts to
reduce
poverty in developing countries through capacity building. It
also
provides information on human rights and HIV/AIDS.
9. www.worldwatch.org/
The homepage for the Worldwatch Institute, an
independent nonprofit
environmental resource organization. The primary mission of this
organization’s numerous periodical publications is to provide
government
agencies and the public at large with an in-depth quantitative and
qualitative
analysis of the major issues affecting prospects for a sustainable
society.
The Annual State of the World, which is now published in twenty-seven
languages,
is the most widely used of all the papers published by this
organization.
Noted for its Neo-Malthusian perspectives.
10. www.oecd/org/env/
A web site for the Organization for Economic
Co-operation and Development
(OECD). This organization presently consists of 30 member
countries,
and all the major economically advanced nations are members of this
organization.
Provides good information on the state of the global economic
development
and the environment from the prospective of the "rich"
nations.
This site is also a good source of information for international
economic
data, globalization and its impact on trade and environment.
11. www.worldbank.org/
The homepage for the World Bank Group. This site
provides detailed
data on world development indictors, external debt, foreign exchange
reserves,
and international development projects intended for the reduction of
poverty,
and trade and development, in general. Comparable information can
be obtained by a visit of the homepage website of the International
Monetary
Fund (IMF), www.imf.org/.
12. www.ulb.ac.be/ceese/meta/sustvl.html
The web site page is maintained by the Center for
Economic and Social
Studies on the Environment (CESSE) located at Universite Libre de
Bruxelles.
Excellent source for getting the latest information on indictors of
sustainable
development. This page also provides a link to a number of other
sustainable development web site locations.
Another web site on sustainable development that I recommend is: www.colby.edu/personal/t/thtieten/sustain.html
|
