Environmental Economics: Theory and Practice.
ECO 325
Fall 2010
MWF 11:30-12:20
Instructor: Dr. Dean Smith
Office: 304 FCB, 523-7396
Dean.smith@nau.edu
Office Hours: MW 2:15-3:45 and by appointment
Three (3) Credit hours.
A Guiding Principle
“In the coevolutionary paradigm, the environment determines the fitness of how
people behave as guided by alternative ways of knowing, forms of social
organization, and types of technologies. Yet at the same time, how people know,
organize and use tools determine the fitness characteristics of an evolving
environment. At any point in time, each determines the other.”
Richard Norgaard
Catalog Description:
The issues, theory and public policy of environmental economics; the cultural,
social and ethical issues of environmental economics; theories of externalities, property
rights, optimal depletion rates and sustainable development; and public policy and
regulation of economic activity with regard to the environment.
Prerequisites:
ECO 284 and Junior Standing.
Justification: This course requires knowledge of the principles of economics and a
level of academic maturity.
Course Objectives:
To develop an understanding of the environmental issues resulting from economic
activity. To understand how these issues are relatively new to the human experience and
to appreciate the normative aspects of the issues. To develop an understanding of the
theory of and behind the various schools of thought regarding environmental economics.
To focus on the major United States environmental policies and the effects of those
policies on both the environmental and economic well-being of society.
Course Structure:
The successful student is expected to gain a working knowledge of the
vocabulary, issues and analytical tools necessary to discuss the impact of economic
activity, environmental outcomes and influences, and public policy. An understanding of
these mechanics is essential to an understanding of the various schools of thought. The
successful student must also show an understanding of the various schools of thought.
The successful student must also show an understanding of the rationales, consequences
and points of disagreement over the various policy measures studied.
The lecture periods will be used to develop, analyze and openly discuss the
theories and policies presented in the assigned readings. The class discussion will clarify
and extend the material presented in the readings; as such preparation and attendance are
essential. Given the normative nature of the material, it is expected that lively class
discussions will take place.
Textbooks and Required Materials:
Environmental Economics and Policy, 5th edition, by Tom Tietenberg,
Addisson Wesley, 2001.
You can find used copies on the internet for very reasonable prices. You will need
to have this for the second week of class. Note that there is a newer edition available at
very high price.
The Nature of Economies, Jane Jacobs, New York: The Modern Library, 2000.
You can find used copies on the internet for very reasonable prices. You will need
to have this for the sixth week of class.
Now or Never, Tim Flannery, New York: Atlantic Monthly Press, 2009.
You can find used copies on the internet for very reasonable prices. You will need
to have this for the second week of class.
It is vital that you complete the readings from Flannery before the assigned
class periods since those days will be class discussion days.
“ECO 325 Readings” available for purchase in room 229 FCB
Selected readings are only available in hardcopy.
Class web site: Go to the FCB website, faculty, smith and click on 325.
http://www.franke.nau.edu/Faculty/admin/course_info.asp?courseid=473
Course Content:
Concepts for valuing
Methods for valuing
Why policies?
New Ways of Thinking
Property Rights
Sustainability
Resource Economics
Energy
Water
Biodiversity
Environmental Econ
Air
Water pollution
Development
Sustainability
New Ways of Knowing
Assignments:
Discussion papers: each student will write two position papers - 3-5 pages in
length - during the semester. The topics will be assigned by the instructor. The student
will argue for increased environmental regulation in one paper and against increased
regulation in the other. Each assignment will include a percentage of the grade devoted
toward writing style.
Examinations:
There will be two mid-term exams and a final exam. Each exam will be written
in format. The questions will include analytical models and policy analysis. Each
assignment will include a percentage of the grade devoted toward writing style.
Grading System:
Discussion paper 1
Discussion paper 2
Exam 1
Exam 2
Final Exam
20%
20%
15%
15%
30%
Re-tests and Makeup Policy:
In the event of missing an exam, only official University excused absences (see
your student handbook) must be accepted, and only if prior notice has been given. Note:
Simply visiting the Health Center does not excuse you from an exam. Make-up exams
will be given after consultation with the instructor.
Mechanisms for Feedback: All assignments will be evaluated by the professor with
written comments and scores made by the professor.
Attendance:
The student is fully responsible for all the material discussed in class and the
assigned reading. Given the technical nature of the course, absences should be kept to a
minimum.
Statement on Cheating:
Any student caught cheating on an exam or plagiarizing on an assigned paper will
receive a grade of F for the course and will be reported to the appropriate University
officials.
Code of Professionalism: The educational experience at the Franke College of Business is
designed to prepare you to become community leaders and to start your professional
career. There is no better place to begin this process than in your preparation for and
behavior in class. All students will sign a Code of Conduct Agreement and turn it in
during the Mission Statement meeting. FCB Business students are offered the opportunity
to participate in the FCB Professionalism Recognition Program
NORTHERN ARIZONA UNIVERSITY
POLICY STATEMENTS
SAFE ENVIRONMENT POLICY
NAU’s Safe Working and Learning Environment Policy seeks to prohibit discrimination
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harassment, sexual assault or retaliation by anyone at this university.
You may obtain a copy of this policy from the college dean’s office. If you have
concerns about this policy, it is important that you contact the departmental chair, dean’s
office, the Office of Student Life (928-523-5181), the academic ombudsperson (928-5239368), or NAU’s Office of Affirmative Action (928-523-3312).
STUDENTS WITH DISABILITIES
If you have a documented disability, you can arrange for accommodations by contacting
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Concerns or questions regarding disability related accommodations can be brought to the
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INSTITUTIONAL REVIEW BOARD
Any study involving observation of or interaction with human subjects that originates at
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The IRB meets once each month. Proposals must be submitted for review at least fifteen
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Your instructor and department chair or college dean must sign the application for
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A copy of the IRB Policy and Procedures Manual is available in each department’s
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Melanie Birck, Office of Grant and Contract Services, at 928-523-8288.
ACADEMIC INTEGRITY
The university takes an extremely serious view of violations of academic integrity. As
members of the academic community, NAU’s administration, faculty, staff and students
are dedicated to promoting an atmosphere of honesty and are committed to maintaining
the academic integrity essential to the education process. Inherent in this commitment is
the belief that academic dishonesty in all forms violates the basic principles of integrity
and impedes learning. Students are therefore responsible for conducting themselves in an
academically honest manner.
Individual students and faculty members are responsible for identifying instances of
academic dishonesty. Faculty members then recommend penalties to the department
chair or college dean in keeping with the severity of the violation. The complete policy
on academic integrity is in Appendix F of NAU’s Student Handbook.
ACADEMIC CONTACT HOUR POLICY
The Arizona Board of Regents Academic Contact Hour Policy (ABOR Handbook, 2-206,
Academic Credit) states: “an hour of work is the equivalent of 50 minutes of class
time…at least 15 contact hours of recitation, lecture, discussion, testing or evaluation,
seminar, or colloquium as well as a minimum of 30 hours of student homework is
required for each unit of credit.”
The reasonable interpretation of this policy is that for every credit hour, a student should
expect, on average, to do a minimum of two additional hours of work per week; e.g.,
preparation, homework, studying.
SENSITVE COURSE MATERIALS
If an instructor believes it is appropriate, the syllabus should communicate to students
that some course content may be considered sensitive by some students.
“University education aims to expand student understanding and awareness. Thus, it
necessarily involves engagement with a wide range of information, ideas, and creative
representations. In the course of college studies, students can expect to encounter—and
critically appraise—materials that may differ from and perhaps challenge familiar
understandings, ideas, and beliefs. Students are encouraged to discuss these matters with
faculty.”
NAU College of Business Administration
Code of Conduct
Responsibility:
I will be on time, prepared, attentive, and professional in my scholastic endeavors. I will
take responsibility for my actions and make every effort to learn as much as possible
from the educational opportunities presented to me.
Respect:
I will meet my commitments to others and treat everyone with respect and civility. I will
respect our learning environment and help preserve its physical condition.
Integrity:
I will be a reliable and honest contributor to individual and group assignments. I will not
seek or help others gain unfair advantage in completing academic requirements. I
understand that there are severe consequences for academic dishonesty.
Expectations about Behavior
Responsibility:
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Attend all classes and meetings on time
Do not wander in and out of classes
Participate but don’t dominate
Pay attention
Respect:
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Turn off cell phones when you are in class
Do not use computers during lectures for non class-related purposes
Make sure language and conversations are appropriate to the classroom setting
Behave in a polite and professional manner
Integrity:
Do not engage in any act of academic dishonesty, including but not limited to:
 sharing a calculator during a quiz or exam
 pre-programming a calculator for use during a quiz or exam unless specifically
authorized by the instructor
 using notes or books during an exam unless specifically authorized by the
instructor
 looking at another's exam or allowing another student to look at your exam
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exchanging exams, passing notes or text messages
discussing answers during an exam
having another take an exam for you or taking an exam for another
unauthorized possession of or access to examination materials by any means,
including electronic transmission, theft, photocopying, electronic or failing to
return exams
altering exams or assignments while in student's possession for review in an
attempt to obtain a more favorable grade
unauthorized collaboration on assignments
submitting the same paper or substantial portions of a paper for multiple classes
fabrication of information and citations
submitting other's words, ideas, materials or work without properly
acknowledging and appropriately referencing them
altering, forging or misusing an academic record
electronic theft of computer programs, data, or text belonging to another