Econ 1360: Environmental Economics

1 Econ 1360: Environmental Economics University of Pittsburgh Spring 2012 Instructor: Dr. Erin Kaplan Class Times: T/R 2:30 3:45 Email: Location: 206 Eberly Hall Office Hours: M 3:00pm 4:00pm Office: Posvar Hall 4918A W 11:00am 12:00pm Or by appointment Course Information Course Description: This course applies microeconomic theory to topics concerning natural resources and the environment. By the end of the course students will be expected to demonstrate a broad knowledge of contemporary Environmental issues, an understanding of the practical application of economic theory to evaluate Environmental problems, and the ability to think critically about potential policy solutions.

2 Course Materials: Textbook: Environmental Economics 2nd Ed. By Charles D. Kolstad CourseWeb: All assignments and course announcements will be posted on CourseWeb. Please check the course page frequently. Student Learning Outcomes: By the end of the semester students who successfully complete this course will be able to 1. Explain the causes of Environmental problems using microeconomic theory. 2. Apply various economic tools of valuation to Environmental problems, and compare different methods of valuation. 3. Assess the costs and benefits of various policy instruments available for correcting Environmental problems as well as the associated incentive structures.

3 4. Discuss complexities in Environmental problems involving uncertain, dynamic, strategic, international and/or intergenerational issues. 5. Analyze a particular Environmental issue, working with a team to apply various concepts learned throughout the course. Course Policies Attendance: Lecture attendance is highly recommended, but does not directly figure into your grade. If absent, you are responsible for obtaining any material discussed or handed out in lecture. Office Hours: Students are encouraged to attend office hours to discuss questions about the material covered in lecture.

4 If you have questions but are unable to attend my scheduled office hours, please contact me to set up another time to meet. Cheating and Academic Misconduct Academic misconduct includes the following examples as well as any other similar conduct which is aimed at falsely representing a student's academic performance: cheating, plagiarizing, unauthorized collaborating on course work, stealing course examinations or materials, falsifying records or data, or intentionally assisting another individual in any of the above. If you are caught cheating on an exam or an assignment, you will receive a zero on the exam or assignment.

5 In addition, the event will be reported to the Office of Judicial Affairs and may lead additional actions from the University. Use of Electronics: The use of cell phones during lectures is a disrespectful distraction to your instructor and other classmates. Use of laptops for activities other than note taking is equally distracting. Please turn your cell phone and other electronic devices off while you are in class. In emergency situations, please discuss limited use of cell phone with me prior to the class during which you would like to use your cell phone.

6 Email: In general, email is the best way to get in contact with me. However, if you send me an email within 24 hours of an exam or homework deadline, don't expect me to respond before the exam/due date. Disability Services: If you have a disability, please contact me and the Office of Disability Resources and Services (DRS), 216 William Pitt Union, 412-648-7890/412-383-7355 (TTY) as early as possible in the term. DRS will verify your disability and determine reasonable accommodations for this course. Policy on Missed Exams: Out of fairness to everyone in the class, exams are only given at the assigned time.

7 If you cannot attend an exam due to a personal emergency outside your control, please let me ASAP. Course Grades Problem Sets (15%) There will be 6 problem sets, each designed to help you review important topics and practice applying the methods taught in class to specific problems. Each assignment will be posted online at least 1 week prior to its due date. Students are strongly encouraged to work in groups on the problem sets; however, each student is individually responsible for completing and turning in the assigned work. The assignments will be graded on both effort and correctness.

8 Solutions to all questions will be posted on CourseWeb. No late work will be accepted, but I will drop your lowest problem set score. Tests (45%) There will be three equally weighted examinations, so each exam will be worth 15% of your grade. The exams are tentatively scheduled for September 2 7th, October 25th, and November 20th. Group Project (40%) Groups of 3 students will select and study an Environmental issue over the course of the semester. The end product of your group work will be a 7-10 page paper and a 15-20 minute presentation on your chosen topic.

9 In addition, there will be a few small deadlines throughout the term to make sure your group is on track. Each member of the group is expected to contribute substantially to the final product, and each person will have an opportunity to evaluate fellow group members at the end of the term. Tentative Schedule Readings Due Dates Date Lecture Topics Ch. pp. PS Project Aug. 28 Economics and the Environment 1 3-15 Aug. 30 Social Choice 3 43-63 Sept. 4 Efficiency and Markets 4 69-77 Sept. 6 77-86 Sept. 11 Market Failure 5 89-103 Topics Sept.

10 13 Natural Resource Economics - PS1 Sept. 18 Non-Renewable Resources - Sept. 20 Renewable Resources - Sept. 25 Cost-Benefit Analysis 6 119-125 PS2 Sept. 27 Test 1 Oct. 2 Demand for Environmental Goods 7 133-140 145-148 Oct. 4 Hedonic Valuation & Household Production 8 152-156 161-164 171-173 9 187-189 Oct. 9 NO CLASS: Fall Break Schedule Oct. 11 Constructed Markets 10 199-201 207-214 PS3 Outlines Oct. 16 Government Regulation I 11 13 223-231 272-280 Oct. 18 Government Regulation II 12 241-251 255-258 Oct. 23 Property Rights 13 262-272 PS4 Oct.