The School of Economics
Georgia Institute of Technology
Economics 4440: Economics of the Environment
Fall 2003
Location:
Times:
Instructor:
Office:
Office Hours:
E-mail:
Phone:
55-111, Instruction Center 111
MWF 1:00
Rod Duncan
Habersham 217, Ivan Allen Building
Monday 2-5pm or by appointment
roderick.duncan@econ.gatech.edu (preferred mode of communication)
404-385-1363
Course Prerequisites: Students are expected to have completed at least one year of
calculus as well as a year of economics principles classes.
Course Nature and Objectives: This course provides students with economic concepts
and tools necessary for making decisions about environmental quality management and
natural resource use.
Text: Tom Tietenberg, Environmental and Natural Resource Economics (5th Edition)
will be the primary text for the course. Students are expected to have read the material in
the book before each class. There will be some additional readings (of a more technical
nature) available as handouts and on the class WebCT webpage.
Recommended Text: Alpha Chiang, Fundamental Methods of Mathematical Economics
(3rd Edition) is available on reserve at the Library. Students who wish to brush up on
some mathematical concepts for the class are well advised to work through some chapters
from Chiang’s excellent text.
Attendance: Attendance is required. Students will be responsible for all material
presented in class or on the required readings.
Problem Sets: There will be problem sets due during the semester. These problem sets
will be quite long and involved. The purpose of the problem sets is to have the students
work through the concepts and tools set out in class. Students are allowed (encouraged
even) to work on the problem sets in groups, but answers must be written up individually.
Mid-Term Exam: One mid-term exam will be conducted during the class. The midterm will be closed book with no notes or computer available.
Final Exam: There will be a final exam during the examination period after the end of
scheduled lectures. This exam will cover all material presented in the course. It will be
closed book with no notes or computer available.
Grading: The weighting of the problem sets and exams will be:
Problem Sets
Mid-Term Exam
Final Exam
40%
30%
30%
Course Schedule: (Readings from Tietenberg)
Week 1-2 - Introduction to environmental and natural resource economics- Chapter 1
and Valuing the environment: concepts and methods- Chapters 2, 3
Week 3-4 - Conventional economic analysis of the environment- Chapter 4
and Economic analysis and environmental evaluation in practice: cost-benefit analysis
Week 5-6 - Optimal consumption of renewable and depletable resources: theoryChapters 5, 7, 14
Week 7 - Sustainable development - Chapter 23
Mid-term (October 8)
Week 8 - Energy resources- Chapter 8
Week 9 - Recyclable resources- Chapter 9
Week 10 - Renewable resources- Chapters 12 and 13
Week 11 - Economics of pollution control- Chapter 15
Week 12 - Local air pollution- Chapter 16
Week 13 - Global air pollution and pollution permits- Chapter 17
Week 14 - Automobile air pollution- Chapter 18
Week 15 - Water and ground pollution- Chapter 19, 20
This schedule is subject to change as the course progresses.