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EEP 101/ECON 125 Environmental Economics

EEP 101/ECON 125 Environmental Economics. David Zilberman 2060 Valley Life Sciences Building, Tuesdays & Thursdays, 9:30-11:00 a.m. Class website: http://are.berkeley.edu/courses/EEP101/spring03/ Office hours: Thurs., 3:30-5:00 p.m. 337 Giannini Hall. G.S.I.'s:.

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EEP 101/ECON 125 Environmental Economics

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  1. EEP 101/ECON 125 Environmental Economics David Zilberman 2060 Valley Life Sciences Building, Tuesdays & Thursdays, 9:30-11:00 a.m. Class website: http://are.berkeley.edu/courses/EEP101/spring03/ Office hours: Thurs., 3:30-5:00 p.m. 337 Giannini Hall

  2. G.S.I.'s: • Yanhong Jin: jin@are.Berkeley.edu • Guanming Shi: gshi@are.Berkeley.edu

  3. Textbooks (Optional) • Tietenberg, Tom. Environmental and Natural Resource Economics. Fifth Edition, Reading, Massachusetts: Addison Wesley Longman, Inc., 2000. • Hartwick, J., and N. Olewiler. The Economics of Natural Resource Use. New York: Harper & Row, 1986. • Carlson, Gerald A., David Zilberman, and John A. Miranowski. Agricultural and Environmental Resource Economics. New York: Oxford University Press, 1993. • Online class notes.

  4. Grading • Option 1: No final paper 50% final, 30% midterm, and 20% homework. • Option 2: With final paper 66.6% grade of option 1, 33.3% grade of paper. Paper:15 pages on an environmental economics topic consisting of survey of literature, interviews, analysis, etc. Examples: -Water markets in California -Policies to contain climate -Economics of the Endangered Species Act

  5. Outline • Lecture 1: Introduction • Lecture 2: When Is a Market Socially Optimal? • Lectures 3-4: Production Externalities • Lecture 5: Positive Externalities • Lecture 6: Coase Theorem and Liability Roles • Lecture 7: Externalities and the Selection of Policy Tools: Other Considerations • Lectures 8-9: Externalities and Technology Adoption • Lecture 10: Environmental and Health Risks • Lecture 11: Waste Management • Lectures 12-13: Public Goods

  6. Outline (continue) Lectures 14-15: Endangered Species, Targeting • Lectures 16-17: Valuation of Environmental Benefits • Lecture 18: Key Elements of Dynamic Systems • Lectures 19-20: Dynamic Aspects of Environ. Policies • Lectures 21 -23: Water Allocation and Quality Policies • Lecture 24: Pesticide Economics • Lecture 25: Biotechnology • Lectures 26-27: International Environmental Issues • Lecture 28: Environment and Development • Lecture 29: Review

  7. What Is Environmental Economics? • How to use economic principles to better manage the environment and the economy. • Guiding principles • Anthropocentric emphasis—human concern for and benefits from nature justifies policy intervention. • Interdisciplinary emphasis—scientific knowledge becomes part of the input to the economic analysis. • Policy emphasis—market failures cause pollution control and environmental conservation policies. • Issue orientation.

  8. Major Issues and Problems • Pollution control—carrot sticks awareness guilt • Valuation of environmental amenities. • Conservation policies and environmental protection. • Water, air, and soil protection. • Climate change. • Sustainability of endangered species. • Risk management.

  9. The major association of environmental economists is the Association of Environmental and Resource Economics (AERE). Its journal is JEEE. Environmental economics is supported by the EPA, USDA, and the U. S. Army Corps of Engineers. Environmental economists are employed by federal and state governments, developers, environmental groups, and lawyers.

  10. The society facilitates understanding between economists and ecologists and the integration of their thinking into a trans-discipline aimed at developing a sustainable world.

  11. Agricultural economists emphasize research on environmental issues including water, pesticides, animal waste, soil erosion, agricultural biotechnology, etc. Their association is the AAEA, and the journal is AJAE. Agricultural economists emphasize research on environmental issues including water pesticides animal waste, soil erosion,ag biotech etc. Their association AAEA journal AJAE

  12. Interdisciplinary Journals • Science American Academy of Science • Nature • Water Resources Research American Geological Union • Natural Resources Modeling • Journal of Amer. Statistical Assoc. American Statistical Association • Management Science Management Science Society • The Economist • Choices • Resources • Challenge • California Agriculture

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