Economic policy of natural resources and environment
The objective of the course is to provide students with a thorough overview of existing knowledge on the economic consequences of sustainable environment and natural resource (NR) management. The course will combine theoretical models and empirical evidence to disentangle what we know (and don’t know) about the relationship between sustainable use of the environment, natural resources, and various economic outcomes. It will also provide a setting for the discussion and evaluation of various policies for the management and use of natural resource wealth and the implications for the enterprises and the whole of society. Methodologically, the course aims to help students strengthen their micro-economic knowledge and to develop and refine their analytical and presentational skills. 1) Knowledge and understanding: the course provides students with the theory of economic policy applied to environment and natural resources. 2) Applying knowledge and understanding: the students should be able to apply knowledge and methods to interpret economic problems related to environment and natural resources. 3) Autonomy of judgment (making judgments): the students are encouraged to improve their preparation through active participation in the courses and develop critical judgment capacity in the subject. 4) Communication skills: the students should develop the capacity to explain (both orally and in writing) the course subjects. 5) Ability to learn (learning skills): at the end of the course, the students should be able to read an economic policy paper applied to environment and natural resources and understand its basic contents.
Course program 1. Introduction. a. The discipline and its area of work; environmental challenges and the role of economics. b. Trade-off between use and conservation of resources and the circular economic system. c. Renewable & non-renewable resources and environmental economics and the concept of sustainability. d. Literature review: basic terminology and concepts of NR economics; the current intellectual debate; globalization and development; the theory of NR curse.
2. Economic analysis of environment and natural resources (the economic approach). a. markets, supply and demand, property rights, externalities, market failures and efficient market allocations (with and without externalities). Producer’s surplus, scarcity rent and long-run competitive equilibrium. b. Static and dynamic efficiency and sustainable development. c. Public policies for environmental protection and the preservation of natural resources: taxes and subsidies, cap-and-trade, regulation. d. Methodological issues: evaluating trade-offs through benefit-cost analysis and other decision-making metrics; discount rate and discounting; methods to evaluate the environment.
3. Applied problems related to the economics and policy of environment and natural resources. a. Depletable resource allocation and the economics of recycling b. Storable, renewable resources: forest harvest decision and the economic efficient rotation; portfolio analysis; factors affecting the efficient rotation; impact of nontimber forest values. c. Common-pool resources: current problems in marine fisheries; the biological growth function; the effort-yield function; maximum sustained yields; efficient rates of effort; the problem of open access; approaches to fisheries management; regulating fishing practices, catch limits; individual transferable quotas (ITQs); taxation.
Practical sessions Benefit-cost analysis applied to projects/policies and evaluation of alternatives (a practical application will be assigned during the course)
Teaching material • Textbook: Tom Tietenberg, Lynne Lewis. Environmental & Natural Resource Economics. 9th Edition, 2012. Pearson Education, Inc.. ISBN-13: 978-0-13-139257-1. Chapters: from 1 to 6, 8, 12, 13 and 14. Available at: https://fcom.stafpu.bu.edu.eg/Economy/3898/crs-15010/Files/environmental_and_natural_resource_economics_by_tom_tietenberg_9th_edition.pdf • Lecture slides are available on Moodle Platform and on the shared Google drive. • Exercises will be discussed during the course.
Date di inizio e termine delle attività didattiche
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Università degli Studi della Tuscia - Rettorato, Via S.M. in Gradi n.4, 01100 Viterbo, ITALY - Tel. 0761.3571