Fall 2014 - 62797 - PA393L - Advanced Policy Economics
Environmental Resource Economics and Policy
This course provides a survey, from the perspective of economics, of issues regarding the use and management of natural resources. It covers both general methodological principles and specific applications. We will begin with an introduction to the principles of environmental and natural resource economics, reviewing the basic concept of economic efficiency and the conditions under which markets can and cannot be expected to result in efficient management of natural resources. We will also study the methods economists use to estimate the demand for environmental and natural resource amenities. Then we will apply these concepts, beginning with models of efficient extraction of non-renewable resources (like oil and minerals), and then moving on to the economics of pollution control. We will also cover many applications of economics to the management of renewable resources; possible applications include water resources, fisheries, forests and wildlife. The course will conclude with discussions of potential conflicts and complementarity between economic growth and environmental sustainability.