Instructor: Hackett, Steve
Subject area: Economics
Department: Economics
Course number: 423
Year taught: 1998
Comments: See web-site for lecture slides, practice quizzes, etc.

Instructor's email: sh2@humboldt.edu
Instructor's Webpage: http://www.humboldt.edu/~envecon/bio.html

Please note that the copyright for this syllabus is retained by the instructor.

Overview: This course will help you develop an understanding of:

-The fundamentals of economics: scarcity & opportunity cost, the normative foundations of economics, and
market exchange.
-The requirements of efficient markets, and the conditions under which markets fail.
-The economics of externalities and the environmental policies designed to reduce them.
-The economics of natural resources: dynamically efficient production, the optimal management of both renewable and non-renewable resources, and the governance issues associated with overcoming the Tragedy of the Commons.
-Issues and techniques associated with measuring the value of non-marketed aspects of the environment.
-The methods (and shortcomings) of benefit/cost analysis.
-The political economy of environmental regulation and natural resources management.
-The economics of assuring environmental compliance.
- Methods of regulation that harness the incentives of markets.

Course Description and Objectives:
To develop an understanding of:
-The fundamentals of economics: scarcity & opportunity cost, the normative foundations of economics, and market exchange.
-The requirements of efficient markets, and the conditions under which markets fail.
-The economics of externalities and the environmental policies designed to reduce them.
-The economics of natural resources: dynamically efficient production, the optimal management of both renewable and non-renewable resources, and the governance issues associated with overcoming the Tragedy of the Commons.
-Issues and techniques associated with measuring the value of non-marketed aspects of the environment.
-The methods (and shortcomings) of benefit/cost analysis.
-The political economy of environmental regulation and natural resources management.
-The economics of assuring environmental compliance.
-Methods of regulation that harness the incentives of markets.

In addition to these learning goals and objectives, you will also have the opportunity to:
-Engage in your own original research in an area related to the course material, and to describe this research in term paper format.
-Select a readings chapter from World Resources 1996-97 and present a review of that material at the end of the semester with a group of other students.

It is possible to succeed in this course without having done any previous study of economics, but you will have more work ahead of you than those who do have an economics background. Emphasis is given to respecting diverse viewpoints and perspectives.

Textbooks:
Hackett, Steve, Environmental and Natural Resources Economics: Theory, Policy, and the Sustainable Society (M.E. Sharpe, Publishers, 1998).
World Resources 1996-97

Topical Outline:

Week 1: Chapter 1--Introduction to Environmental and Natural Resources Economics

Week 2: Chapter 2--Value Systems and Economic Systems

Week 3: Chapter 3--The Economics of Market Allocation

Week 4: Chapter 4--Externalities: Why Markets Fail to Protect Environmental Quality

Week 5: Chapter 4, continued; review for exam 1

Week 6: Exam 1; start Chapter 5--The Economics of Natural Resource Systems

Week 7: Chapter 5, continued

Week 8: End Chapter 5; start Chapter 6--Pricing the Environment: Meas. and Analysis of Benefits and Costs

Week 9: Chapter 6

Week 10: Chapter 7--The Political Economy of Environ. Regul. and Resource Management

Week 11: Chapter 8--Motivating Regul. Compliance: Monitoring, Enforce., and Sanctions

Week 12: Chapter 9--Incentive Regulation: Marketable Allowances and Pollution Taxes

Week 13: finish Ch.9; Exam 2

Week 14: Student Group Presentations or Chapter 10-Global Warming

Week 15: Student Group Presentations

Final Exam: 9:30 Class: Thursday, 14 May @ 8:00.

11:00 Class: Tuesday 12 May @ 10:20

Policies

Responsibilities:

My responsibility is to lead and motivate students who are committed to the learning process, and to determine the extent to which students have mastered the material covered in this course. By signing up for this course you have accepted responsibility for attending class regularly and on-time, being an active learner who contributes to the classroom discussion, and for your performance on assignments.

Procedural Rules:

Missed or late assignments: If you fail to take an exam, turn in a term paper, or participate in a group presentation, you will receive a "0" for that assignment. The only exception is for serious and compelling reasons, which are limited to documented and serious illnesses, hospitalization, death in the family, or equally important reasons. If this occurs to you, you must notify me as soon as possible (and prior to exams) and I will offer you an alternative to receiving "0". Turning in late term papers can place those who respected the deadline at a grade disadvantage because they had less time to develop their work. Accordingly, unless you have a serious and compelling reason for missing an assignment or term paper deadline, you will receive a 2 letter grade deduction for lateness.

Grading Philosophy: Grades are based on my professional opinion of your work and are not subject to negotiation. If I have made an error, however, please bring it to my attention.

Conduct: Don't be late, don't interrupt speakers, be courteous of others, and engage the subject matter. Help create a friendly, inclusive, and rigorous classroom culture in which everyone is welcome to comment and contribute, and in which diversity is respected.

Grading:

Mid-Term Examinations:

You will have two mid-term exams, each worth 30 percent of your final grade.

Group Presentation:

You will engage in one group presentation of the chapter from World Resources 1996-97. The group presentation
constitutes 10 percent of your final grade.

Term Paper (Due Tuesday 21 April 1998 In Class):

Students will write a short (maximum of 7 double-spaced pages of text) word-processed term paper in which you report of independent study in some aspect of the subject matter of the course. Examples of past term papers are given in the student essays component of the course Internet site. For example, you could write a critical essay on one of the readings, a topic out of the textbook, or especially one of the independent readings books. You could do independent research, or volunteer research activity for an agency or organization. You could read and review several books or articles on the subject matter that are not covered in the course. All term papers will have a cover page with title, author, and date, no more than 7 pages of double-spaced text (with sources cited in the text), a list of references (usually a minimum of 5), and any tables, figures, or other appendix material you would like to include (not a place to dump more text). You should get your topic approved by me beforehand; this will allow you to get feedback from me and likely improve your grade. Please note that the grade of "A" is reserved for work that is truly an outstanding achievement. In contrast, "B" refers to work that is more than satisfactory ("C") but less than an outstanding achievement. Your term paper grade will be determined based on (1) mastery of economic concepts, degree of economic sophistication, and the quality of your description of the linkages between economic concept and the environment, (2) quality of writing, and (3) novelty, originality, and creativity of your project. The term paper constitutes 30 percent of your final grade.

Final Examination:

Students can elect to take the final exam as a method of raising their term paper score.

Final Grade:

Numerical scores are assigned for each graded item. Your Course Numerical Score will be:

.30*(Exam 1 Score) + .30*(Exam 2 Score) + .10*(Presentation Score) + .30*max {Term Paper Score, Final Exam
Score}.

This Course Numerical Score will then be converted into a letter grade based on the following scale:

100 - 93: A
92.99 - 90: A-
89.99 - 88: B+
87.99 - 83: B
82.99 - 80: B-
79.99 - 78: C+
77.99 - 73: C
72.99 - 65: C-
64.99 - 60: D+
59.99 - 50: D
49.99 - 0: F