BMA 5124 – Environmental and Resource Management in a
Regulatory Environment
Special Term I, 2013
Module Syllabus (v1)
Faculty Member: Kenneth Richards, Department of Strategy and Policy
Faculty Email: bizkrr@nus.edu.sg
Faculty Office: Biz1 06-09
Class Meetings: TF 6:00-9:30 (We will take a 20 minute break during each class)
Class Location: BIZ1 3-4
Introduction
Businesses operate to maximize profit within an environment that is constrained
by their costs of production, consumer demand, capital resource requirements,
and public opinion. The role of government is to safeguard the interests of their
citizens. These two functions – private profit maximization and public interest
protection – are not carried out independently, particularly as it relates to
environmental and natural resource protection. Governments develop
regulations cognizant of the fact that the citizens not only want a clean
environment, but they are shareholders and employees of companies.
Businesses must understand that their operational and strategic decisions not
only affect their profits, but the future regulations under which they will operate.
This course is designed to help MBA students understand (1) the theory behind
environmental policy goal setting, including types of market failures, marginal
cost and benefit analysis, and dynamic optimization of natural resource use; (2)
the range of mechanisms at the disposal of governments to influence private
decisions related to environmental and natural, including direct regulation,
market-based instruments, government provision, procurement, various types of
information programs, and inducements to conduct research and development;
(3) the analysis of costs that are borne by businesses and consumers under
various forms of environmental and natural resource programs; (4) the
processes, politics, and ethics of business-government collaboration on
environmental processes; and (5) case studies of businesses that have
successfully managed in the presence of environmental and natural resource
constraints.
Course Objectives
This course is designed to provide you with an introduction to the many aspects
of corporate sustainability management. During this course you will:
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Become familiar with the concepts and vocabulary in the field;
Be introduced to the analytical tools, particularly microeconomic tools,
associated with analysis of government regulation for environmental and
natural resource protection;
Explore environmental and natural resource policy and its effect on firms;
Work through cases and examples of businesses managing under
environmental and natural resource regulation;
Gain teamwork experience addressing practical challenges in regulatory
analysis and management;
Learn how to analyze the impacts and positively influence the direction of
government regulations.
Course Materials
The course will include required readings, optional readings, and case studies.
Students will be provided with a reading list prior to the beginning of the
module.
Course Evaluations
Grades for the course will be based upon the following assignments and
contributions:
Problem sets:
Quizzes:
Group projects:
Class participation:
20%
30%
30%
20%
Problem sets: There will be two numerical problem sets during the
course. These will draw on basic microeconomic principles to understand
the process and impact of government regulations.
Quizzes: There will be three in-class quizzes of no more than 30 minutes.
The quizzes will be cumulative, requiring you to integrate all material
covered to that point. The quiz might take any form, including essay,
multiple choice, short answer, or other formats as appropriate.
Group projects: There will be one group project, with presentations
during the final week of class meetings. Your grade for the project will be
based on a combination of evaluations on the group paper, the
participation, and possibly peer evaluations.
Class participation: All students are expected to attend all class meetings
prepared to discuss the assignments and readings. You will be evaluated
on your attendance, contributions to the class discussion, and insight.
Schedule of Meetings
Section I: Introduction to Public Economics and Environmental Policy
2
14 May 2013
Refresher on basic concepts in economics
Brief review of welfare economics
Introduction to environmental policy
17 May 2013
Market failures and the role of the government
Government failure and the limits of regulation
Section II: Addressing Market Failure
21 May 2013
Environmental and natural resource goal setting through marginal analysis
Public goods analysis
25 May 2013
Property rights, Pigou and Coase
Regulation
Problem Set 1 is due
Quiz#1
29 May 2013
Emissions, marketable allowances, and subsidies
Regulation under uncertainty
29 May 2013
Regulatory enforcement
Addressing information related market failures: imperfect information,
asymmetries of information, and research and development
4 June 2013
A framework for policy instruments
Problem Set 2 is due
Quiz #2
7 June 2013
Politics in environmental and natural resource regulation
11 June 2013
Influencing government regulation
14 June 2013
Applications and cases in management under environmental regulation
18 June 2013
Group presentations/discussion
21 June 2013
3
Group presentations/discussion
Quiz #3
4