Econ 115/ EnvSt 175: Intermediate Environmental Economics
Spring
2007
Prof. Charles D. Kolstad
Office: NH 2032; Office Hours: M3:30-5, W11-12, or by appt; email kolstad@econ.ucsb.edu. [no office hours week of April 9]
Lectures: Theatre-Dance (TD) 1701; MW2:00-3:15; plus discussion section (Fri 9-10, SH 1609; 10-11, Girv 2119).
TA: Ms. Sarani Saha (Office Hours Tu 2-4,
Th 3-4, F 2:30-3:30; Office: Bren Hall 3414;
ssaha@bren.ucsb.edu; Mailbox in Bren Hall 2406)
This is an advanced undergraduate course in environmental economics. Intermediate microeconomics (100A) and calculus are prerequisites. We will cover most aspects of the economy’s interaction with the environment. However, the course will be short on policy and long on theoretical developments in the area of environmental economics. Students without the preparation should enroll in EnvSt 174: Environmental Economics and Policy.
This course will not be easy but should be rewarding. On average, you should expect approximately 8 hours of work per week outside of the classroom. The course will involve a good deal of reading and homework. You should read all of the material in the chapter before the date scheduled for class discussion.
Exams: There will be a midterm (May 9) and a final exam (June 11, 4-7pm). The final will cover the whole course. The midterm and final will be closed book although you may bring one sheet of notes (8.5”x11”, both sides ok) to each exam. Furthermore, even though we will not go over all the material in a chapter, you will be responsible for all of the assigned material on exams, unless material is expressly excluded. Midterm and midterm solution posted on web.
Attendance: Although I do not take attendance, you should plan to attend class and section regularly. Exams may include material not in the readings but covered in class or section. Section will be held every week, including the first week. There will be no classes April 9 and 11. To make up for this, there will be two extra classes scheduled at dates and times to be announced.
Homework: There are also weekly homework assignments (most weeks anyway). A week's homework is due on Friday, in section, or at the latest, by 4pm in the TA’s mailbox. Check the assignments and announcements page. Homework may be handed in late, up to the point where the answers are posted on the web page. You have two free tardies for homework; after two late homeworks, any others will have a grade penalty for being late. Furthermore, your worst homework grade will be dropped. Homework is graded on a 0-10 basis with extra credit problems allowing scores in excess of 10. Homework answers will be posted on the web.
Joint Work: Homework is supposed to reflect your individual work. You may discuss general issues with your fellows students but you should not copy from someone else. Each student should turn in his or her own homework.
Grading: The 7-8 homework assignments will count roughly 25% in the final grade; the midterm 25%, the final 35%; and class participation (questions, class discussion, section discussion, attendance, etc.), 15%.
Lecture Notes: Lecture notes are posted in the secure directory: http://fiesta.bren.ucsb.edu/~kolstad/secure/notes (see previous section for login).
CLASS SCHEDULE
AND HOMEWORK ASSIGNMENTS
Please read the appropriate material before the first class meeting on that material.
1. Intro & Environmental Policy (Week 1)
Kolstad:
Chapters 1 & 2
Bjorn Lombord, “The Truth about the Environment,” The Economist (2 Aug 2001).
Nicholas Stern, “Stern Review of the Economics of Climate Change,” (30 October 2006)
Don Fullerton and Robert Stavins, “How Economists See the Environment,” Nature, 395:6701 (1998).
Garrett Hardin, “The Tragedy of the Commons,” Science, 162:1243-48 (1968).
Robert Hahn, “Economic Prescriptions for Environmental Problems,” J. Economic Perspectives (1989).
2. Social Choice and Efficiency (Week 2 – note
no classes April 9 & 11; rescheduled to April 26)
Kolstad: Chapters 3 & 4
Kelman “Cost-Benefit
Analysis: An Ethical Critique”
Arrow et
al, “Are
We Consuming Too Much?”, J. Economic
Perspectives (2004)
3.
Public Goods and Externalities (Week 3)
Kolstad, Chapter 5
EXTRA CLASS (Makeup): Thursday, April 26, 2007, 7-10pm Location NH
1006
4.
Supply and Demand for Environmental Goods and Services; Cost-Benefit
Analysis (Week 4)
Kolstad, Ch 7, 12
"A
Price on the Priceless?," Economist, Aug. 17,
1991.
5.
Valuation Methods: Revealed Preferences (Week 5)
Kolstad, Ch 16 & 17
6.
Valuation Methods: Constructed Markets (Week 6)
Kolstad, Ch 18
May
9: Midterm (See Sample
Midterm and Solutions
from a previous year)
Covers first five weeks on outline (through Valuation Methods, Revealed Preferences).
7.
Regulating Polluters: Prices
(Week 7)
Kolstad, Ch 7 & 8
8.
Regulating Polluters: Property Rights (week 8)
Kolstad, Ch 6
Ronald Coase, “The Problem of Social Cost,” J. Law and Economics [Ch 3 in Stavins]
"Feedlot
Price: $1.82/month," Santa Maria Times,
John Tierney, “Where the Tuna Roam,” NYTimes (2006)
Michael Sandel, “Its Immoral to Buy the Right to Pollute,” New York Times (1997)
9. Asymmetric Information: Hidden actions and
hidden types (Week 9)
Kolstad, Ch 10 & 11
10. Voluntary Actions and Agreements;
International Agreements (Week 10).
Kolstad, Ch 13
"Dirt Poor," Economist, March 21, 1998.
David E. Sanger, "World Trade Group Orders US to Alter Clean Air Act," New York Times, Jan. 18, 1996.
Barrett:
"Montreal
vs. Kyoto," in Global Public Goods, 1999.
Larry Summers World Bank Memo.
[Reading list version: May 31, 2007]