Economics 115/EnvSt 175

Prof. Charles D. Kolstad

Short Research Paper

The paper is due on the last day of classes. The term paper should be an economic analysis of an environmental issue in the news during the course of the academic year. Attach to the paper you submit a copy of the newspaper, magazine or other current affairs article (from the preceding nine months) that is closely related to your paper. Remember to focus on the economic dimensions of the environmental problem in your paper, not just the policy or informational dimensions.

Suggestions for the Research Paper

The purpose of the research paper is to test your ability to apply the analytical tools you have learned in the course toward the analysis of an environmental policy issue. You may consider an existing policy, a proposed new policy (or group of alternative policies), or both. The policies you evaluate may be on any level: local, regional, national, or international.

Please base your paper on a current environmental or resource policy issue. To make sure that your paper is based on a current issue, attach a copy of a relevant article. More specifically, find an article in the popular press (newspapers like the NY or LA Times or magazines like the Economist) dated sometime in this academic year and attach a copy of the article to your paper when you hand it in.

Use the paper as an opportunity to employ concepts from the course's lectures and readings, as well as your own ideas. You should not attempt to do a large amount of library research investigating the intricacies of the policy option(s) you select. Instead, spend a reasonable amount of time familiarizing yourself with the important features of the policy, and then evaluate the policy using the economic analysis and policy evaluation tools we have been discussing. The paper should be approximately 2000-2500 words (to find the number of words if you are using WORD, use TOOLS, WORD COUNT). At the top of your paper, with your name, indicate the number of words in your paper.

Please show your skills with references and footnotes as well as your command of the English language. Your grade on the paper will suffer if it is not well written. Grammatical errors and poor style make a paper harder to read. When someone is reading 50 papers, difficult to read papers are not appreciated.

Environmental policies can be analyzed along a number of dimensions. One key consideration is how efficient the policy is relative to no regulation or relative to the plausible alternatives. Another important set of issues surrounds the distributional implications of the program. Who are the winners and losers from the policy in question? And are the distributional effects ethically justifiable? Closely related to the distributional issue is the question of political feasibility -- does the program have a reasonable chance of being politically acceptable?

You need not cover all of these dimensions. An excellent paper could focus on just the efficiency dimension, for example.

Your grade will be based not only on the strength of the analysis but also on its organization and clarity of expression. Regarding organization, we offer the following guidelines. First, provide a very brief introduction section. This section should (1) identify the policy issue, (2) motivate the reader by making it clear why the issue is important, (3) indicate what the main objective of the paper is (for example, to identify and assess the distributional impacts of a carbon tax imposed by the U.S.), and (4) provide a "road map" indicating how the rest of the paper will be organized, that is, what each remaining section of the paper will do. If necessary, the introduction could be followed by a brief presentation of further background information. The middle section of the paper should provide the main analysis. This section should make up most of the paper. The final section should summarize your findings. In this conclusion section you can also, if desired, draw some broad conclusions about how the policy you are examining connects with broader policy goals or environmental issues. Make sure that the English grammar and composition are first-rate. Poorly written papers lose points.

You are free to choose any topic in the general area of environmental economics and policy. It need not be a topic that we have discussed or will discuss in class. We strongly recommend that you discuss your intended topic with Prof. Kolstad or your TA during the initial stages of preparation. We can offer feedback about the workability of the topic, help you focus the topic as necessary, and suggest potential references.

Another suggestion: don't try to cover too much ground. It's better to consider carefully a specific aspect of a given program than to treat several aspects of the program superficially. Since the paper is only 8-10 pages, it is important to keep your topic somewhat specific.

The following is a list of paper topics that have been used or considered in the past. This list is by no means comprehensive. As noted above, you can choose any topic that fits within the general subject matter of the course and is current, based on a current press article.

Possible Paper Topics

Air Pollution

A critical assessment of (aspects of) the RECLAIM Program in LA

Are there effective ways of extending marketable permits program in LA to include other (e.g., transportation) sources of pollution?

An Assessment of California's Zero-Emissions Vehicles Statute

Alternative (cleaner-burning) fuels: Should We Subsidize Them?

Should the Federal Gas Taxes Be Raised? Lowered?

Is There a Cure for Bay Area Traffic Congestion? More Highways? Higher Tolls?

How well is the SO2-trading program under the 1990 Clean Air Act working? How could the program be improved?

Changes in Monitoring Technologies and the Choice between Emissions Taxes and Mandated Technologies

Can Potential Regressive Impacts of Fuels Taxes Be Avoided?

MTBE, air pollution, groundwater contamination: Should California reverse its policy of promoting the fuel-additive MTBE?

Transnational Externality Problems

Dealing with CFC's: What Have We Learned from the Montreal Protocol?

How Can We Set Up International Agreements to Deal with Global Climate Change?

Given what we know about benefits and costs of reducing greenhouse gas emissions, does the Kyoto Protocol mandate a reasonable level of reductions in greenhouse gases?

What Could We Expect from Subsidies to R&D in Alternative Energy Technologies? Are These Subsidies Worthwhile Socially?

Are "carbon caps" a good way for the U.S. to meet its (potential) obligations under the Kyoto Protocol?

Can Subsidies to Carbon Sinks (Carbon Sequestration) Make a Significant Contribution to Reductions in Greenhouse Gas Concentrations?

Consider the Clean Development Mechanism endorsed under the Kyoto Protocol. How effective can it be in leading to reductions of greenhouse gases? Why are developing countries critical of this mechanism, and is the criticism valid?

Evaluating Acid Rain Problems in Europe: What Can Be Done?

Debt-for-Nature Swaps: How do they work and how much can they alleviate deforestation problems?

Biodiversity and the Value of Species

Alternatives to the Endangered Species Act

Is the Spotted Owl Worth the Costs of Saving It?

U.S. Wetlands Policy -- Should It Be Strengthened? (And if so, how?)

Misc.

Environmental Degradation in Once Centrally-Planned Economies: How Extensive Is the Damage, and Why Was It So Severe?

Is There a Market for "Environmentally Safe" Products? How Much Can Such Markets Cure Pollution Problems?

Does a Deposit-Refund System for Lead-Acid Batteries Make Sense?

How Can the U.S. Superfund Policy Be Improved?

Does Benefit-Cost Analysis Pass a Benefit-Cost Test?

Is there a "garbage crisis?"

How should municipal solid waste policy vary in different regions of the country?

On what basis should a local government choose between landfills and incineration to dispose of any wastes left after source reduction and recycling measures have been taken?

Should sport utility vehicles (SUV's) face tougher mileage and tailpipe emissions requirements?

Updated: 3/4/02