Session 2012/2013
DEPARTMENT OF ECONOMICS
EC 388 ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS
(Third Year, Spring Semester 2013)
Module Organiser: Dr Tom M Van Rensburg [Room: 211 Tel. Ext: 3858 Email:
thomas.vanrensburg@nuigalway.ie]
Module Outline
Timetable: Tuesday from 12.00 to 2.00 in Room CA002 (JE Cairnes).
Coursework: Assignment 30%
Examination 70%
MODULE OVERVIEW
This course introduces students to the use of economic tools in analysing natural
resource issues. The theory of externalities and public goods are discussed and this
addresses environmental external effects with respect to depletion and pollution.
Causes of environmental externalities are also included in the context of missing
markets and property rights and non-convexities. This topic includes the Paretooptimal provision of public goods. It also deals with common property resources.
The components of value which, make up total economic value is considered. These
include direct, indirect, option value and existence value. Willingness to pay and
willingness to accept approaches are discussed. Revealed and stated preferences and
related valuation techniques are included. Particular attention is paid to optimal use
of natural resources in relation to ownership and property rights issues. Consideration
is also given to the analysis of environmental policy instruments, with an emphasis on
situations with uncertainty and/or asymmetric information. The treatment of
international environmental problems and environmental trade and the environment is
also made drawing on case studies from developed and developing countries where
appropriate. Specific international environmental problems, namely deforestation, the
trade in wildlife products, global warming and acid rain are discussed. Marks for the
seminar assignment and presentation are indicated above.
The module will be divided into a set of lectures and practicals for the first 7 weeks of
the semester followed by a set of student seminars run over one/two weeks toward the
end of the semester. The course consists of 20 hours of lectures, 4 hours of practical
work and 3/6 hours of student seminars. Seven course topics will form the basis of
the lectures, seminars and assignments. The lectures will be based on core readings
for the topic. A specific seminar is indicated for each topic (see below). These
include the economics of sustainable development; environmental valuation; nonrenewable and renewable resources (wildlife economics; fishery economics and
forestry economics), the economics of pollution control, trade and the environment
and the economics of renewable energy.
ASSESSMENT
Each student will make a presentation based on one of several topics given by Tom
van Rensburg in class. The seminar presentations should be treated as a set of initial
comments on the essay you will submit which covers the same material. These are
scheduled for week beginning 26th of February 2013. Assume you have
approximately 10 minutes each to make the presentation. I suggest you use 4 - 5
OHP/powerpoint slides for this.
Each student is required to present and write an essay on the topic they are given.
You are required to submit an essay, maximum length 3000 words. This is to be
handed in to Claire Noon’s office in St Anthony’s by 5pm on Friday 29/03/2013.
The essay should comprise a coherent well structured narrative that develops an
argument. Also the inclusion of diagrams, mathematical and statistical models, data
and computer simulations are very much encouraged.
READING
There is no single text for the course (Tietenberg and Perman et al., should be the
principal texts), although frequent reference will be made to 4 key texts (Pearce and
Turner 1990; Perman et al 2003. Tietenberg, 2002, Hartwick and Olewiler, 1998)
which are required reading for the module. In addition there is a required course
reading list. This is available as a separate doc file (ec388reading.doc) which you can
download from blackboard.
Chapman, D. 2000. Environmental economics:theory, application, and policy.
Hartwick. J. M. and Olewiler, N.D. 1998. The economics of natural resource use.
Harper and Row, New York.
Pearce, D. & Turner, R.K. 1990. Economics of natural resources and the
environment. Harvester Wheatsheaf.
Perman, R., Ma, Y., McGilvary, J. and Common, M. 2003. Natural resource and
environmental economics. Longman.
Tietenberg, T. 2002. Environmental and natural resource economics. Longman.
UNEP, 1995.
Global biodiversity assessment.
Cambridge (Chapter 11 and 12).
Cambridge University Press,
THE LECTURE SCHEDULE
There are 12 weeks of lectures altogether and these are described below.
Week Number
Topic
1
2
3
Sustainability
Sustainability
Welfare economics and the environment
4
Market failure, intervention failure, externalities and
public goods
Renewable resources
Non renewable resources
Valuing the environment
5
6
7
8
9
10
Student seminars
Student seminars
Valuing the environment
Environmental policy
11
International environmental problems
12