Econ 3535 - Natural Resource Economics - Spring 2022

Live slides:

Topic 1 - Economic Fundamentals

Topic 2 - Energy Resources

Topic 3 - Pollution and Climate Change

Topic 4 - Valuation and Non-Energy Resources

Calendar

Course Calendar
Week	Dates	Classes			Assignments
		Monday	Wednesday	Friday
1	1/10 - 1/14	Syllabus + Intro	Topic 1 - Economic Fundamentals Lecture 1	Lecture 2
2	1/17 - 1/21	No Class MLK Jr. Day	Lecture 3	Lecture 4
3	1/24 - 1/28	Lecture 5	Lecture 6	Lecture 7
4	1/31 - 2/4	Lecture 8		Lecture 9
5	2/7 - 2/11	Lecture 10	Lecture 11	Lecture 12
6	2/14 - 2/18	Review	Midterm	Topic 2 - Energy Resources Lecture 13
7	2/21 - 2/25	No Class Spring Break	No Class Spring Break	No Class Spring Break
8	2/28 - 3/4	Lecture 14	Lecture 15	Lecture 16
9	3/7 - 3/11	Lecture 17	Lecture 18	Lecture 19
10	3/14 - 3/18	Lecture 20	Lecture 21	Topic 3 - Pollution and Climate Change Lecture 22
11	3/21 - 3/25	Lecture 23	Lecture 24	Lecture 25
12	3/28 - 4/1	Lecture 26	Review	Midterm
13	4/4 - 4/8	Topic 4 - Valuation and Non-Energy Resources Lecture 27	Lecture 28	Lecture 29
14	4/11 - 4/15	Lecture 30	Lecture 31	Lecture 32	Writing Assignment
15	4/18 - 4/22	Lecture 33	Lecture 34	Lecture 35
16	4/25 - 4/27	Lecture 36
5	2/14 - 2/18				Math Assignment
Final	05/04 1:30-4pm				Final Exam

Course Outline

Unit 1: Economic Fundamentals

Lecture 1

• Intro to Class

• Prisoner's Dilemma Review

Readings for this lecture

• Robert Frank's The Darwin Economy

Lecture 2

• Economic tools for analyzing natural resource problems

• Discounting and Present Value

Readings for this lecture

• "Static Efficiency", page 21

• "Relating Optimality to Efficiency", page 48

• "Comparing Benefits and Costs Across Time", page 49

• "Choosing the Discount Rate", page 60

Lecture 3

• Resource taxonomy

• Recyclable resources

• Two-period model with constant MC and fixed supply

Readings for this lecture

• "Resource Taxonomy", page 124

• "A Two-Period Model", page 108

• Michael Greenstone's Managing Climate Risk (online version).

Lecture 4

• Mineral two-period model

• Marginal user cost

Readings for this lecture

• "A Two-Period Model", page 108

Lecture 5

• Two-period model wrap up

• Markets

Readings for this lecture

• "Efficient Intertemporal Allocations", page 127

Lecture 6

• Efficiency

• Welfare theorem

• Property rights

Readings for this lecture

• "Externalities as a Source of Market Failure", page 25

• Example 2.2 Shrimp Farming Externalities in Thailand, page 27

Lecture 7

• Coase theorem

• Bargaining

Readings for this lecture

• "Externalities as a Source of Market Failure", page 25

• Example 2.2 Shrimp Farming Externalities in Thailand, page 27

• "Coase Theorem", page 36

Lecture 8

• Policy tools

• Local pollutants

Readings for this lecture

• Ronald Coase and the Misuse of Economics (online version).

• "The Command-and-Control Policy Framework", page 358

Lecture 9

• Policy comparisons

• Numerical example

Readings for this lecture

• "Command and control vs market-based policies", page 358

Lecture 10

• Policies Continued

• Numerical Exercise

Lecture 11

• Taxes and Deadweight Loss

• Corrective Taxes and Subsidies

Videos

• Taxes and Deadweight Loss

• Pigouvian Taxes

Lecture 12

• Growth and Development

• Trade

Readings for this lecture

• "Trade and the Environment", page 480

• Example 20.3 The Natural Resource Curse

• Carbon Taxes Won't Do Enough to Slow Global Warming (online version).

Math Assignment due 2/15 at 11:59pm

Unit 2: Energy Resources

Lecture 13

• Energy Overview

Lecture 14

• Electricity Industry

Readings for this lecture

• "Will we ever stop using fossil fuels?", pages 117-120

• "Electricity" and Examples 7.5 and 7.6, pages 158

Lecture 15

• Coal

• Carbon capture and storage

• Nuclear

Readings for this lecture

Lecture 16

• Natural Gas

Readings for this lecture

• Renewable energy - the global transition, explained in 12 charts (online version)

Lecture 17

• Renewables overview

• Wind

Readings for this lecture

• Renewables to Account for a Third of Global Power Generation in 2022 (online version).

• Renewables Are Expanding at an Astounding Pace. But It’s Still Not Enough to Meet Climate Goals (online version).

Lecture 18

• Solar

Readings for this lecture

• Interview with NREL Researcher: Solar power’s greatest challenge was discovered 10 years ago. It looks like a duck. (online version).

Lecture 19

• Energy storage

• Demand response

Readings for this lecture

• Energy Storage

• Demand Response

Lecture 20

• Hydroelectric

• Biofuels

Videos

• The Future of Energy Storage Beyond Lithium Ion

Lecture 21

• Transportation

Readings for this lecture

• "CAFE Standards" and "Alternative Fuels and Vehicles", page 380 and 385

Unit 3: Pollution, Climate Change, and Policy

Lecture 22

• Climate change

• Science overview

• Policy overview

Readings for this lecture

• The Uninhabitable Earth (online version).

Lecture 23

• Policies for local air pollution

• US Acid Rain Program

• Programs in France, Sweden, Japan

Readings for this lecture

• NYTimes' The Daily: Joe Biden's Climate Plan

Lecture 24

• International air pollution policies

Videos

• A Brief History of Environmental Justice

• Example: Cancer Alley Why This Town is Dying From Cancer

Lecture 25

• Paris Agreement

• Country-specific climate change policies

Readings for this lecture

• Most countries aren't hitting 2030 climate goals, and everyone will pay the price (online version).

• China’s Pledge to Be Carbon Neutral by 2060 - What It Means (online version).

• John Kerry, Biden’s Climate Czar, Talks About Saving the Planet (online version).

Lecture 26

• Environmental taxes

• Double dividend hypothesis

Readings for this lecture

• The Trump Administration Is Reversing More Than 100 Environmental Rules. Here’s the Full List. (online version).

• TBD: about Biden's Climate Efforts

Unit 4: Valuation Methods and Non-Energy Resources

Lecture 27

• Valuation overview

• Cost/benefit analysis

• Efficiency

Readings for this lecture

• Chapter 3

Lecture 28

• Different types of value

• Stated preference methods and biases

Readings for this lecture

• Chapter 4

Lecture 29

• Revealed preference methods

Readings for this lecture

• Chapter 4

Lecture 30

• Ecosystem services

Readings for this lecture

• Chapter 4

Literature Review Assignment due 4/4 at 11:59pm

Lecture 31

• Bioeconomic systems

• Static fisheries

Readings for this lecture

• Video: The economic, social and icon value of the Great Barrier Reef

• What Is The Real Value Of The Great Barrier Reef? (online version)

• What bees can teach us about the real value of protecting nature (online version).

Lecture 32

• Dynamic fisheries

• Open access fisheries

Readings for this lecture

• First half of chapter 12 (Until you get to the dynamic fisheries model)

Lecture 33

• Forestry

Readings for this lecture

• Chapter 11

Lecture 34

• Land use

• Food insecurity

Readings for this lecture

• Chapter 10

Lecture 35

• Water

Readings for this lecture

• Chapter 9

Lecture 36

• Waste and Recycling

Readings for this lecture

• Is Recycling Worth It? (online version).