Essay Environmental Economics — International Issues
The essay should be maximum 5 pages
 The essay should include an economic model (you may only use a figure, and
explain the figure, the graphs, the slopes etc. with words).
 Use the literature in the reading and the additional reading list
 Two students should write together, but single authored work is also ok.

The deadline is January 18, 2012!
Possible subjects:
About biodiversity
1.
What is the economic value of biodiversity?
2.
Explain why biodiversity is likely to be under-provided by the market, and by
single countries if they act non-cooperatively
3.
Discuss 2-3 potential important aspects of an international environmental
agreement with point of departure in bio-diversity
About international fisheries management
1.
Why is there a need for fisheries management?
2.
Explain static and dynamic aspects of fisheries
3.
What are the particular challenges for international management?
4.
Solutions or improvements
About climate change
1.
What characterizes the climate change problem?
2.
To what extent is the problem likely to be solved if nations non-cooperatively set
emission reduction targets?
3.
Discuss why it may be difficult to negotiate a new climate treaty that involves a
major share of the world’s nations and implies large emission cuts
About the Porter-hypothesis and Eco-dumping
1.
What is the Porter-hypothesis and what is Eco-dumping?
2.
Discuss to what extent the Porter-hypothesis is likely to be true, and whether it
makes eco-dumping less likely
3.
Discuss pros and cons of including measures against eco-dumping in the GATT
Pollution Havens
1.
What is the Pollution haven hypothesis?
2.
Present and discuss the theoretical foundation for the Pollution Haven
hypothesis
3.
Review the empirical evidence for the Pollution Haven hypothesis
4.
How is the Pollution Haven hypothesis connected to the Environmental
Kuznets curve?
Additional Reading
Regional and global environmental problems
Designing Climate Mitigation Policy Aldy, Krupnick, Newell et al 2009. NBER
Biodiversity Gowdy Land Economics 1998 Biodiversity
Nunes Bergh Ecological Economics 2001
Biodiversity Science 2005
Marine Biodiversity Worm Barbier et al Science 2006
Natural Resources Management and International Trade
International Fisheries Game theory Hannesson JEEM 1997
Eggert and Greaker 2009
Trade and natural resources Copeland and Taylor AER 2008
Ostrom Institutions and the Environment Economic Affairs 2008
Foreign Direct Investments, The International Allocation of Wealth and the Environment
Trade, Growth and the Environment Copeland and Taylor JEL 2004
Pollution Haven Footloose and pollution-free Ederington Levinson and Minier REStat 2005
Globalization and the Political Economy of the Environment
The Burden of Proof in National Treatment Disputes and the Environment Horn JEEM 2011
Reading list: Environmental Economics – International Issues (2011)
Regional and global environmental problems
1. Hoel, M. (1999), "Transboundary Environmental Problems", Handbook of
environmental and resource economics, Edvard Elgar.
2. Moran D. and Pearce D. (1997/1998), The economics of biodiversity, The
international yearbook of environmental and resource economics, Edward Elgar.
3. Sandler, T. (1993), "Tropical Deforestation: Markets and Market Failure", Land
Economics 69, p. 225-233.
4. Barrett, S. (1999), "Montreal versus Kyoto: International Cooperation and the Global
Environment", Global Public Goods, UNDP
5. Siniscalco, D. and C. Carraro. 1992. The international dimension environmental
policy. European Economic Review 36 (1992) 379-387.
6. Hoffert, Calderia et al (2002): Advanced Technology Paths to Global Climate
Stability: Energy for a Greenhouse Planet, Science`s Compass Vol 298.
7. Downing, P. B. and L. J. White, Innovation in Pollution Control, Journal of
Environmental Economics and Management 13, p. 18-29 (1986).
8. Sterner, T and M. Persson, (2008),“An Even Sterner Report”: Introducing Relative
Prices into the Discounting Debate, Review of Environmental Economics and Policy
9. Sterner, T, (2007) “Gasoline Taxes a useful instrument for climate policy” Energy
Policy p 3194-3202
10. Sterner, T., and D Slunge (2009) 'Environmental Fiscal Reform in East and Southern
Africa and its Effects on Income Distribution', Rivista di Politica Economica, VII-IX:
July-sept.
Natural Resources Management and International Trade
11. Björndal, T. and G.R. Munro, (1999) ‘The Economics of Fisheries Management: A
survey’ The international yearbook of environmental and resource economics:
1998/1999. Eds H. Folmer and T. Tietenberg. pp.153-188. Elgar, Cheltenham, U.K.
12. Eggert, H. (2001) ‘Towards an integrated sustainable management of fisheries’ in
Our fragile World: Challenges and Opportunities for Sustainable Development. Ed.
M.K. Tolba. pp. 651-660. UNESCO Eolss Publishers Co. Ltd Oxford, UK.
13. Costello et al Catch Shares preventing fish stock collapse Science 2008
14. Brander, J. and S. Taylor (1997) ‘International Trade and Open-Access Renewable
Resources: The Small Open Economy Case’ Canadian Journal of Economics, 30(3),
pp. 526-52.
Foreign Direct Investments, The International Allocation of Wealth and the Environment
15. Stern, D. 2004 EKC World Development
16. Arrow, K. et al. (1995), Economic growth, carrying capacity, and the environment,
Ecological Economics 15, p. 91-95.
17. Xing and Kolstad. 2002. Pollution Haven EARE.
18. Eggert, H. and Greaker, M. (2009), On blending mandates, border tax adjustment and
import standards for biofuels. Working paper.
19. Porter, M. E. and C. von der Linde (1995), Green and Competitive, Harvard Business
Rev., September-October.
20. Palmer, K., W. E. Oates and P. R. Portney (1995), Tightening Environmental
Standards: The Benefit-Cost or the No-Cost Paradigm?, Journal of Economic
Perspectives 9, p. 119-132
21. M. Greaker, 2003. Porter Hypothesis Journal of Environmental Economics and
Management, November 56(3): 246-59
Globalization and the Political Economy of the Environment
22. R. Bommer and G. G. Schultze (1999)., "Environmental Improvement with Trade
Liberalization", European Journal of Political Economy 15, p. 639-661.
23. Körber A (1998), "Why everybody loves Flipper: the political economy of the U.S.
dolphin safe laws", European Journal of Political Economy, 14, pp. 475-509