University of Waterloo
Department of Economics
Course Outline
PRELIMINARY
Term & Year:
Fall 2012
Course Number, Section, Campus, Title:
3543 ECON 355-001
UW
Economics of Energy and Natural Resources
Lecture Times, Building & Room Number:
Section 1
UW
Tues., Thurs. 01:00-02:20,
HH 1104
Instructor’s Name, Office Location, Office Hours, Contact:
Name:
Robert Jefferson
Office Location:
HH 218
Office Hours:
Tuesdays, 2:30-4:00, Thursdays, 5:00-6:30
(or by appointment)
Tel:
519-888-4567 ext# 33169.
Email:
robert.jefferson@uwaterloo.ca
Notes:

When sending email, “Econ 355” must appear in the subject line and the message must
include your full name and ID number.

Email will be answered within two Business days

Students are encouraged to discuss their questions or problems about the course and course
materials with me in person during the term office hours. Group consultations are most
welcomed.

Where to find this course outline:
This course outline is available at two locations for the duration of the term:
(a) Department of Economics website http://economics.uwaterloo.ca/ug-courseschedule.htm
(b) LEARN web site http://learn.uwaterloo.ca/ (use WatIAM/Quest username and password)
1. Course Description
Canada is rich in natural resources - vast forests, huge fishing grounds and enormous
deposits of minerals, oil and gas. How should these best be used to further the aims of society?
Should we use them up as quickly as possible, or eke them out so that they last "forever"? How
should the harvesting of fish and timber be organized so as to achieve the greatest benefits?
How should the benefits from resource use be distributed? Are we running out of resources, as
some contend, or can we expect to have adequate supplies for the foreseeable future? The
purpose of this course is to address some of these questions.
The approach used in this course differs from that of environmental economics, which is
largely applied public-finance and welfare economics. The exploitation of mineral deposits,
forests, or fish stocks involve the management of assets as well as the determination of optimal
flow rates of production; our analyses will resemble capital theory. Resource management
policies deal with rates of exploitation; hence the major analytical tool is the mathematics of
dynamic optimization. The necessary tools and concepts will be covered as the need for them
arises.
[1/7]
2. Text
Jonathan M. Harris, Environmental and Natural Resource Economics: A Contemporary
Approach, Houghton Mifflin Company, 2006
This text is available online at:
http://ase.tufts.edu/gdae/publications/textbooks/env_nat_res_economics.html
3. Assessments
The marks breakdown:
Midterm
Friday Sept 28, 4:30-6:00 pm
OnLine Quizzes (4)
Peer Edits, Drafts (2)
Term Paper
Final Exam (comprehensive) TBA (between Dec 6-20)

20%
10%
10%
30%
30%
Notes:

The date and time for the final exam will be set by the Registrar during the exam period and
announced in class and on LEARN.

Students are expected to be available during the exam period to write the final exam. Travel
plans are not an acceptable reason for requesting an alternative final exam. See
http://www.registrar.uwaterloo.ca/exams/finalexams.html for details.
Examinations in this course are based on the material presented as lecture contents.
[2/7]
4. Class Schedule / List of Topics
Week
1. Sept. 10 – 14
2. Sept. 17 – 21
3. Sept. 24 – 28
4. Oct. 1 – 5
5. Oct. 8 - 12
6. Oct 15 – 19
Topic
Introduction,
Static vs. Dynamic Efficiency
Dynamic Efficiency
Property Rights, Open Access
Externalities,
Public Goods
Non-Renewable Resources
Optimal Extraction
Non-Renewable Resources
Optimal Extraction
Optimal Extraction
World Oil Supplies
Assignments
Online Homework
“Quiz” 1, Sept. 28
First Draft, Term Paper,
October 12
Edits, First Drafts
October 19
Online Homework
“Quiz” 2, Oct. 19
7. Oct. 22 – 26
Resource Scarcity & Scarcity Measures
Midterm Exam—October 25
8. Oct. 29 – Nov. 2
Pricing of Water
Water Demand Management
Online Homework
“Quiz” 3, Nov. 2
9. Nov. 5 – 9
Forest Management, Optimal Rotation
10. Nov 12 – 15
11. Nov. 19 – 23
Forest Management, Optimal Rotation
Economics of Fisheries
Second Draft, Term Paper
November 9
Edits, Second Drafts
Online Homework
“Quiz” 4, Nov. 23
12. Nov. 26 – 30
Economics of Fisheries
“Sustainability”
December 3
Term Paper (Electronic
and Paper Copy)
[3/7]
5. Term Paper
You may choose to write about either (a) a critical evaluation of an article from a professional
journal, or (b), a less critical review of several articles on a single topic.
The suggested minimum length for the final paper is 2500 words, excluding title page, endnotes,
and bibliography. There is no specific grade penalty for shorter papers, but you are unlikely to treat
your topic adequately in a paper that is too short. There is no suggested maximum length.
The first draft of the paper should be at least 1500 words, and must contain a bibliography. The
second draft must be a revised version of the first, unless you have been directed to change topics by the
instructor. The final draft must be a revised version of the second draft.
Format and Submission:
Each draft of the paper is to be submitted electronically, for distribution to other students for review and
editing.
First drafts of papers are to be submitted no later than 8:00 pm., Friday, October 12. Second drafts are
to be submitted no later than 8:00 pm., Friday, November 9.
All students who have submitted drafts will be assigned three papers to review / critique.
Reviews / critiques are to be completed and submitted before 8:00 pm. on October 19 (first draft peer
review) and November 16 (second peer review).
More information (where/how to submit drafts, reviews) will be posted on the LEARN site
Editing:
Following receipt of the first drafts of papers, each student will receive three drafts written by
classmates. These are to be edited for clarity, structure, organization and completeness.
Appended pages of comments and suggestions are generally welcomed by authors, but are not required.
Submission Dates:
First Draft due, electronically
First Edits due, electronically
Second Draft due, electronically
Second Edits due, electronically
Final Paper due, electronically
and paper copy
8:00 pm, October 12
8:00 pm. October 19
8:00 pm, November 9
8:00 pm, November 16
4:00 pm, December 3
[4/7]
Term Paper
Late Penalties:
Final Paper
Five per cent (5%) of final paper mark per (calendar) day to December 7,
Ten per cent (10%) of final mark per (calendar) day thereafter
Term Paper Grading Scheme:
The grade for the final version of the paper is broken down as follows:
Introduction
Conclusion
Content
Organization
References/Bibliography
Grammar/Style
Spelling
15%
15%
30%
15%
10%
10%
5%
The conclusion (written second last) and introduction (written last) are essential components of any
academic paper.
The introduction should start with a general discussion of your subject and lead to a specific statement
of the main point, or thesis. The thesis should tell in one (or at most two) sentence(s), the overall
argument, and briefly, what the body of the paper will be about.
The conclusion serves to sum up the paper's points or provide a final viewpoint about the topic. The
conclusion should consist of three or four convincing sentences that clearly review (not restate) the main
points, and briefly describe the author’s thesis.
Content refers to (a) mastery of economic concepts, (b) degree of economic sophistication (analysis
rather than simple description), and (c) quality of the description of linkage between economic concepts
and natural resources exploitation or policy.
The paper should be logically organized. Papers which “simply evolve” will be penalized.
References should include all sources used in the preparation of the paper, whether quoted or not.
Sources cited are authoritative (primary--Wikipedia does not count as an authoritative source, but is a
good place to learn and to find authoritative sources). At least 3 authoritative sources cited (preferably
more).
The bibliography should follow APA style.
Grammar and style refer to general paragraph and sentence structure.
Correct spelling is essential, and students are advised that spell checkers will not pick up all errors.
Each spelling error found will cost one mark of a possible five. Papers with five or more errors will be
given zero on this portion of the total grade.
[5/7]
6. Additional Information
1. Missing the Final Exam Due to Illness

Missing the final exam is a very serious matter which automatically results in a zero mark for
the exam itself and possibly a failing mark for the course. Read the department policy on
deferred final exams http://economics.uwaterloo.ca/DeferredExams.html for instructions.
2. Missing a Midterm Due to Illness During the Term

If a student misses a midterm due to illness and has valid documentation (approval required),
the weight of the missed midterm will be shifted to the final exam. Without valid
documentation, the student will receive zero for the missed midterm. Midterms will not be
rescheduled.
3. Fee-Arranged Issues
Students are responsible for administrative matters concerning their course registration including
fee arrangements. No make-up work or remedies will be given for losses of access to LEARN
and academic consequences arising from administrative issues with the Registrar’s Office.
4. Professor’s and Student’s Roles and Responsibilities
My responsibility as professor is to lead and motivate students who are committed to the learning
process, and to determine the extent to which students have mastered the material covered in this
course. I aim to be courteous, respectful, and responsive to student needs. Grades are assigned
based on my professional judgment of the quality of your work and are not subject to
negotiation.
5. Classroom Protocols

Private conversations in class are discouraged

Turn OFF all cell phone communication devices and put them away for the duration of the
lecture.

Photographic devices are not permitted in class; this is a University regulation.

Courtesy and respect for all learners, and for the learning environment (classroom) is
expected.
[6/7]
7. University Statements
1. Cross-Listed Courses
Please note that a cross-listed course will count in all respective averages no matter under which
rubric it has been taken. For example, a PHIL/PSCI cross-list will count in a Philosophy major
average, even if the course was taken under the Political Science rubric.
2. Academic Integrity
Academic Integrity: In order to maintain a culture of academic integrity, members of the
University of Waterloo are expected to promote honesty, trust, fairness, respect and
responsibility.
Discipline: A student is expected to know what constitutes academic integrity, to avoid
committing academic offences, and to take responsibility for his/her actions. A student who
is unsure whether an action constitutes an offence, or who needs help in learning how to
avoid offences (e.g., plagiarism, cheating) or about “rules” for group work/collaboration
should seek guidance from the course professor, academic advisor, or the Undergraduate
Associate Dean. When misconduct has been found to have occurred, disciplinary penalties
will be imposed under Policy 71–Student Discipline. For information on categories of
offenses and types of penalties, students should refer to Policy 71 – Student Discipline,
http://www.adm.uwaterloo.ca/infosec/Policies/policy71.htm
Grievance: A student who believes that a decision affecting some aspect of his/her university life
has-been unfair or unreasonable may have grounds for initiating a grievance. Read Policy 70
– Student Petitions and Grievances, Section 4,
http://www.adm.uwaterloo.ca/infosec/Policies/policy70.htm
Appeals: A student may appeal the finding and/or penalty in a decision made under Policy 70 –
Student Petitions and Grievances (other than regarding a petition) or Policy 71 – Student
Discipline if a ground for an appeal can be established. Read Policy 72 – Student Appeals,
http://www.adm.uwaterloo.ca/infosec/Policies/policy72.htm
Academic Integrity website (Arts):
http://arts.uwaterloo.ca/arts/ugrad/academic_responsibility.html
Academic Integrity Office (University): http://uwaterloo.ca/academicintegrity/
3. Accommodation for Students with Disabilities:
Note for students with disabilities: The Office for Persons with Disabilities (OPD), located in
Needles Hall, Room 1132, collaborates with all academic departments to arrange appropriate
accommodations for students with disabilities without compromising the academic integrity
of the curriculum. If you require academic accommodations to lessen the impact of your
disability, please register with the OPD at the beginning of each academic term.
[7/7]