Instructor: Pendleton, Linwood
Subject area: Economics
Department: Economics
Course number: 587
Year taught: Fall 1998
Prerequisites: ECON 487, ECON 500 or permission of the instructor.
Instructor's email: linwoodp@rcf.usc.edu
For additional information: http://www-rcf.usc.edu/~linwoodp/linwoodp.html#classes
Course
information 
Please note that the copyright for this syllabus is retained
by the instructor.
Class Presentations:
Each student will be required to make at least 1 or 2 class presentations
(depending on class size) during the semester. Class presentations will be based
on the journal articles listed in the syllabus. Class presentations are worth
40% of the final grade.
Paper:
Students are required to write a research paper on any topic in natural resource
economics. The paper is to be between 10 and 20 pages. The topic must be
approved by Prof. Pendleton. The paper is worth 60% of the final grade.
Evaluations:
The Professor evaluation for this course will be administered the last week of
this semester.
I. Introduction to Resource and Environmental Economics
Class: (9/4/98)
Discussion: (9/11/98)
Willig, R. 1976. Consumer's surplus without apology. The American Economic
Review. 66(4): pp. 589-597.
II. Dynamic Optimization of Welfare
Discussion (9/14/98)
Weitzman. 1994. On the Environmental Discount Rate. Journal of Environmental
Economics and Management. 26: 200-209
Seminar (9/18/98)
Michael Hanemann (UC Berkeley): "Economic Explanations for the Divergence
Between Willingness to Pay and Willingness to Accept"
III. Resource Rent and Property Rights
Discussion (9/21/98)
Schlager, E. and E. Ostrom. 1992. Property Rights Regimes and Natural Resources:
A Conceptual Analysis. Land Economics 68(3):249-62.
Seminar (9/23/98)
Linwood Pendleton (in Development Seminar) "Modeling Environmental Quality
as a Latent Variable"
III. General Resource Scarcity
Discussion (9/28/98)
Hall, D. and Hall, J. 1984. Concepts and Measures of Natural Resource Scarcity
with a Summary of Recent Trends. JEEM. 11:363-379
Seminar (10/2/98)
Charles Kolstad (UC Santa Barbara)
Discussion (10/5/98)
Devarajan, S. and Fisher, A. 1982. Exploration and Scarcity. JPE
Seminar (10/9/98)
CVSK Sarma, tentative title "A CGE for India"
Discussion (10/12/98)
9) Slade, M. 1982. Trends in Natural Resource Commodity Prices: An Analysis of
the Time Domain. JEEM
Seminar (10/16/98)
Michael Ward (UC Berkeley)
IV. Exhaustible Resources
Discussion (10/19/98)
10) Arrow, K. and Chang, S. 1982. Optimal Pricing, Use and Exploration of
Uncertain Natural Resource Stocks
Seminar (10/23/98)
German Fermo
V. Renewable Resources
A. Timber:
Discussion (10/26/98) Forest Mining
Berck, P. 1979. The economics of timber: a renewable resource in the long-run.
Bell Journal of Economics
Seminar (10/30/98)
Andres Lerner (UCLA) "A Model of Intra-industry Competition for Regulatory
Capture: Effluent Standard-setting in the Pulp & Paper Industry"
Lecture (11/2/98)
Tietenberg Chap 11
Howe, C.W. Natural Resource Economics. 1979. Wiley & Sons.
Chap 11 - The Economics of Forest Management
Biological Timber Management
Economic Timber Management
The Faustmann Formula
Non-timber Forest Benefits
Seminar (11/6/98)
David Layton (UC Davis), "Heterogeneous Preferences Regarding Global
Climate Change"
B. Water:
Discussion (11/9/98)
Provenchar, B. 1995, Issues in the Conjunctive Use of Surface Water and
Groundwater, in the Handbook of Environmental Economics, Bromley
Seminar (11/13/98)
Robert Mendelsohn (Yale University), "Global Impact Model: Estimating
Country-Specific Damages From Climate Change"
C. Open Access Resources:
Discussion (11/16/98)
Haveman, R. 1973. Common Property, Congestion, and Environmental Pollution. QJE
87:278-287
Seminar (11/20/98)
Anna Alberini (CU Boulder), "Incentives Posed By Strict Liability For Toxic
Spills"
D. Fisheries:
Lectures (11/23/98)
The Schaefer Model
Economic Versus Biological Management
Management Alternatives:
Rushing
Regulation
Assigning Property Rights
ITQ's Shellfish Leasing
Discussion (11/30/98)
Bell, F. 1972. Technological Externalities and Common Property Resources:
An Empirical Study of the U.S. Northern Lobster Fishery. JPE 80:148-153
Seminar (12/04)98 Robert Friedheim, USC
VI. Environmental Economics
Discussion (12/07/98)
Wietzman, M. 1975. Prices vs. Quantities. Review of Economic Studies. pp.
477-491.
Grouped more or less by week:
| Lectures 1-4 | Lecture 5-6 | Lecture 7-10 | Water |
| Open Access | Fisheries | Tropical Deforestation | Sustainability |
| Non-market Valuation |
Exercises
Logging vs. Fisheries and
Tourism exercise
Problem Sets
Answers to Problem Sets
Practice Questions for the Mid-Term
Core Forumulae for the Mid-Term
Practice Questions for the Final Exam