Environmental and Resource Economics

Topics

Here are the topics for the 12 lectures I plan to give:

Week 1

1. Theory of Exhaustible Resources

R.M. Solow.  “Richard T. Ely Lecture:  The Economics of Resources or the Resources of Economics.”  American Economic Review, No. 64 (1974), pp. 1-14.

*J.M. Conrad and C.W. Clark.  Natural Resource Economics.  Cambridge:  Cambridge University Press, 1987, Chapter 1, Chapter 3.

*N. Hanley, J. Shogren, and B. White.  Environmental Economics in Theory and Practice.  Oxford:  Oxford University Press, 1997, Chapter 7, pp. 177-206; Chapter 9, pp. 227-265.

2. Empirical Evidence for Hotelling

M.H. Miller and C.W. Upton.  “A Test of the Hotelling Valuation Principle.”  Journal of Political Economy, No. 93 (1985), pp. 1-25.

R. Halvorsen and T.R. Smith.  “A Test of the Theory of Exhaustible Resources.”  The Quarterly Journal of Economics (February, 1991), pp. 123-140.

M.E. Slade.  “Trends in Natural Resource Commodity Prices:  An Analysis of the Time Domain.”  Journal of Environmental Economics and Management (June, 1982).

P. Berck and M. Roberts.  “Natural Resource Prices:  Will They Ever Turn Up?”  Journal of Environmental Economics and Management, Vol. 30  (July, 1996), pp. 65-78.

3. Economics of Energy

Week 2

1. ODE's in the plane

2. Open access fishery, Extinction

3. Maximum Principle

4. Sole Ownership of Fishery

Week 3

1. Empirical Fisheries--ITQ's and other management

2. Forestry Model

3. Empirical Forestry

Week 4

1. Stockpiles and their effects on poaching.

2. Economics of Endangered Species

3.  Exhaustible Resources:  Empirical Evidence and Quantitative Modeling 

M.H. Miller and C.W. Upton.  “A Test of the Hotelling Valuation Principle.”  Journal of Political Economy, No. 93 (1985), pp. 1-25.

R. Halvorsen and T.R. Smith.  “A Test of the Theory of Exhaustible Resources.”  The Quarterly Journal of Economics (February, 1991), pp. 123-140.

C. Withagen.  “Untested Hypotheses in Non-Renewable Resource Economics.”  Environmental and Resource Economics, Vol. 11 (1998), pp. 623-634.

W.D. Nordhaus.  “The Allocation of Energy Resources.”  Brookings Papers, No. 3 (1973), pp. 529-570.

L. Fishbone and H. Abilock.  “Markal, A Linear Programming Model for Energy Systems Analysis:  Technical Description of the BNL Version.”  Energy Research, Vol. 5 (1981), pp. 353-375.

Hanley et al., Chapter 9, pp. 227-248.

E. Hnyilicza and R.S. Pindyck.  “Pricing Policies for a Two-Part Exhaustible Resource Cartel:  The Case of OPEC.”  European Economic Review, No. 2 (1976), pp. 139-159.

4.  Stochastic Calculus and Option Values in Resources   *Not in 2004

**A. Dixit and R. Pindyck.  Investment Under Uncertainty.  Princeton University Press, 1994, Chapters 1-4.

*Hanley et al., Chapter 7, pp. 206-213; Chapter 9, pp. 266-270.

M. Brennan and E. Schwartz.  “Evaluating Natural Resource Investments.”  Journal of Business, No. 58 (1985), pp. 135-157.

J. Conrad.  “On the Option Value of Old-Growth Forest.”  Ecological Economics, Vol. 22 (August, 1997), pp. 97-102.

J.V. Krutilla.  “Conservation Reconsidered.”  American Economic Review, No. 47 (1967), pp. 777-786.

H.J. Albers, A.C. Fisher, and W.M. Hanemann.  “Valuation and Management of Tropical Forests:  Implications of Uncertainty and Irreversibility.”  Environmental and Resource Economics, Vol. 8 (July, 1996), pp. 39-61.

A.C. Fisher.  “Investment Under Uncertainty and Option Value in Environmental Economics.”  Resource and Energy Economics, Vol. 22 (2000), pp. 197-204.

H.C. Clarke and W.J. Reed.  “Land Development and Wilderness Conservation Policies Under Uncertainty:  A Synthesis.”  Natural Resource Modeling, Vol. 4 (1990), pp. 11-37.

5.  Resources in the Long Run:  Growth and Sustainability

*Hanley et al., Chapter 8, Chapter 14.

H.J. Barnett and C. Morse.  Scarcity and Growth:  The Economics of Natural Resource Scarcity.  Baltimore:  Johns Hopkins Press, 1963, Chapter 1.

W.D. Nordhaus.  “Lethal Model 2:  The Limits to Growth Revisited.”  Brookings Papers on Economic Activity (1992), pp. 1-59.

J. Hartwick.  “Intergenerational Equity and the Investing of Rents from Exhaustible Resources.”  American Economic Review, Vol. 67 (1977), pp. 972-974.

K.G. Maler.  “National Accounts and Environmental Resources.”  Environmental and Resource Economics, Vol. 1 (1991), pp. 1-15.

T. Aronsson and K.G. Lofgren.  “National Product Related Welfare Measures in the Presence of Technological Change:  Externalities and Uncertainty.”  Environmental and Resource Economics, Vol. 5 (1995), pp. 321-332.

R.M. Solow.  “An Almost Practical Step Toward Sustainability.”  Resources for the Future (1992).

M.A. Toman.  “Economics and Sustainability:  Balancing Trade-Offs and Imperatives.”  Land Economics, Vol. 70 (1994), pp. 399-413.

D. Pearce and G. Atkinson.  “Measuring Sustainable Development,” in D.W. Bromley (ed.) The Handbook of Environmental Economics, Oxford:  Basil Blackwell, 1995, pp. 166-181.

6.  Discounting in the Long Run

P. Dasgupta.  “Discounting:  Why and How?”  Plenary Lecture, Tenth Annual Conference of European Association of Environmental and Resource Economists, Crete, June, 2000, 19p.

M.L. Weitzman.  “Gamma Discounting.”  American Economic Review, Vol. 91 (March, 2001), pp. 260-271.

7.  Climate Change

W.D. Nordhaus.  “Rolling the ‘Dice’:  An Optimal Transition Path for Controlling Greenhouse Gases.”  Resource and Energy Economics, Vol. 15 (1993), pp. 27-50.

D. Chapman, V. Surie, and S. Hall.  “Rolling DICE for the Future of the Planet.”  Contemporary Economic Policy , Vol. XIII (1995), pp. 1-9.

C. Azar and T. Sterner.  “Discounting and Distributional Considerations in the Context of Global Warming.”  Ecological Economics, Vol. 19 (1996), pp. 169-184.

A.C. Fisher and U. Narain.  “Global Warming, Endogenous Risk, and Irreversibility.”  University of California, Department of Agricultural and Resource Economics, Working Paper No. 908, Berkeley (July, 2002), 21p.

8.  The concept of Externality (M Oct 8, 13))

Richard Cornes and Todd Sandler, The Theory of Externalities, Public Goods, and Club Goods, Cambridge U. Press 2nd Edition 1996 Ch. 3, 4.

R. Coase "The Problem of Social Cost,"  Journal of Law and Economics Oct. 1960.

D.M.G. Newberry, "Externalities:  The Theory of Environmental Policy," in G.A. Hughes and G.M. Heal (eds.) Public Policy and the Tax System, 1980.

9.  Economywide Effects of Regulation, Double Dividend (B Oct 15, 20)

P.A. Diamond and J. Mirrlees.  Optimal Taxation  AER March 1971

Part II:

http://links.jstor.org/sici?sici=0002-8282%28197106%2961%3A3%3C261%3AOTAPPI%3E2.0.CO%3B2-4

Lecture Notes on DM

Lecture Notes on Goulder et al and Fullerton.

Agnar Sandmo, "Optimal Taxation:  An Introduction to the Literature."  Journal of Public Economics 6 (1976) 37-54.

Gary Yohe, "The Backward Incidence of Pollution Control--Some Comparative Statics in General Equilibrium," JEEM 17 (1989)

 Goulder,-Lawrence-H; Parry,-Ian-W-H; Burtraw,-Dallas  Revenue-Raising versus Other Approaches to Environmental Protection: The Critical Significance of Preexisting Tax Distortions
 RAND-Journal-of-Economics. Winter 1997; 28(4): 708-31
 or National Bureau of Economic Research Working Paper: 5641 June 1996; 24

                http://www.nber.org/papers/w5641

 Fullerton,-Don; Metcalf,-Gilbert-E  Environmental Taxes and the Double-Dividend Hypothesis: Did You Really Expect Something for Nothing?
 National Bureau of Economic Research Working Paper: 6199 September 1997; 36

            http://www.nber.org/papers/w6199

Berck, P. and Hess, P.  Assessing the Economic Impact of Large Scale Environmental Regulations in California     Powerpoint presentation

Powerpoint on regulation in the US.
 

8.  Forestry  (B Oct 22, 27)

Lecture notes on forest planning/history.  Legal and political framework for forestry in US.

K. N. Johnson and H. L. Scheurman.  “Techniques for Prescribing Optimal Timber Harvest.”  Forest Science Monograph, No. 18 (1977).

*P. Berck.  “The Economics of Timber:  A Renewable Resource in the Long Run.”  Bell Journal of Economics, Vol. 10, No. 2 (Autumn, 1979), pp. 447-461.

*P. Berck and T. Bible.  “Solving and Interpreting Large-Scale Harvest Scheduling Problems by Duality and Decomposition.”  Forest Science, Vol. 30, No. 1 (1984), pp. 173-182.

D. Adams and R. Haynes.  “1980 Softwood Timber Assessment Market Model:  Structure, Projections, and Policy Simulations.”  Forest Science Monograph, No. 22 (1980).

*A. G. McQuillan.  “The Declining Even Flow Effect—Non-Sequitur of National Forest Planning.”  Forest Science, No. 32 (1986), pp. 960-972.

R. Hartman.  “The Harvesting Decision Where a Standing Forest Has Value.” Economic Inquiry, No. 14 (1976), pp. 52-58.

T. Mitra and H. Wan.  “Some Theoretical Results on the Economics of Forestry.”  Review of Economic Studies, No. 52 (1985).

T. Mitra and H. Wan.  “On the Faustman Solution to the Forest Management Problem.”  Journal of Economic Theory, No. 40 (1986), pp. 229-249.

Economic Growth and the Rise of Forests Foster,-Andrew-D; Rosenzweig,-Mark-R
Quarterly-Journal-of-Economics. May 2003; 118(2): 601-37

Link at Ingenta (not known if this is a stable link)

 Sohngen,-Brent; Mendelsohn,-Robert An Optimal Control Model of Forest Carbon Sequestration
 American-Journal-of-Agricultural-Economics. May 2003; 85(2): 448-57

Multiple Use Sustained Yield Act

Notes on Forest Models

9.  Fisheries (B Oct 29, Nov 3)

Conrad and Clark.  Chapter 2.

V. L. Smith.  “On Models of Commercial Fishing.”  Journal of Political Economy, No. 77 (1969), pp. 181-198, Sections 1 and 2.

*V. L. Smith.  “Economics of Production from Natural Resources.”  American Economic Review, No. 58 (1968), pp. 409-431.

*R. F. Fullenbaum, E. W. Carlson, and F. W. Bell.  “Economics of Production from Natural Resources:  Comment and V. L. Smith Reply.”  American Economic Review, No. 61 (1971), pp. 483-491.

G. Johns and P. Berck.  “Estimating Structural Resource Models When Stock is Uncertain:  Theory and Application to Pacific Halibut” (June, 1989).

R. T. Deacon.  “An Empirical Model of Fishery Dynamics.”  Journal of Environmental Economics and Management, No. 16 (1989), pp. 167-183.

Weitzman,-Martin-L Landing Fees vs Harvest Quotas with Uncertain Fish Stocks
Journal-of-Environmental-Economics-and-Management. March 2002; 43(2): 325-38

Grafton,-R-Quentin; Squires,-Dale; Fox,-Kevin-J Private Property and Economic Efficiency: A Study of a Common-Pool Resource  Journal-of-Law-and-Economics. October 2000; 43(2): 679-713
 

P. Berck and C. Costello.  The Regulated and Ruined Fishery.  Mimeo 2003

Homans,-Frances-R; Wilen,-James-E  A Model of Regulated Open Access Resource Use
Journal-of-Environmental-Economics-and-Management. January 1997; 32(1): 1-21

*D. Levhari and L. Mirman. “The Great Fish War:  An Example Using a Dynamic Cournot-Nash Solution.”  Bell Journal of Economics, No. 11 (1980).

10.  Conservation of Species and Extinction (B Nov 3)

Notes

Polasky,-Stephen; Solow,-Andrew-R  On the Value of a Collection of Species
Journal-of-Environmental-Economics-and-Management. Part 1 Nov. 1995; 29(3): 298-303

(available in CDL--don't have stable link)

Ando,-Amy-Whritenour Do Interest Groups Compete? An Application to Endangered Species
 Public-Choice. January 2003; 114(1-2): 137-59
http://www.kluweronline.com/issn/0048-5829/contents   (reached by Melvyl and UCLA library if this doesn't work)

P. Berck.  “Open Access and Extinction.”  Econometrica, No. 47 (1979), pp. 877-882.

 Kremer,-Michael; Morcom,-Charles Elephants
American-Economic-Review. March 2000; 90(1): 212-34

Bulte E.H. and G.C. van Kooten, 1999. Economics of antipoaching enforcement and the ivory trade ban, American Journal of Agricultural Economics 81: 453-466

Weitzman,-Martin-L  Economic Profitability versus Ecological Entropy
 Quarterly-Journal-of-Economics. February 2000; 115(1): 237-63

M. Livingston, G. Carlson, and P. Fackler.  "Managing Resistance Evolution in Two Pests to Two Toxins with Regufia."  AJAE Forthcoming (mimeo in library.)
 

15.  Environmental Regulation under Uncertainty

Price vs. Quantity; the delegation approach; the revelation approach (H Nov 5,10)

M.L. Weitzman, "Prices Versus Quantities,"  Review of Economic Studies.  Oct 1974:477-91 

Peter J. Morgan, "alternative Policy Instruments Under Uncertainty:  A programming Model of Toxic Pollution Control. JEEM 10(1983):248-269

Willaim D. Watson and Ronald Ridker, "Losses from Effluent Taxes and quotas Under Uncertainty." JEEM 11(1984):310-326

E. Kwerel, "To Tell the Truth,"  Review of Economic Studies, Symposium Volume, October 1977: 595-601

P. Dasgupta, P. Hammond and E. Maskin.  "on Imperfect Information and Pollution Control,"  Review of Economic Studies 1980:857-60.

Rafael Rob, "The Demand Revealing Mechanism," in Larry Samuelson, ed, Microeconomic Theory, Kluwer-Nijhoff Publishing, 1986 pp. 121-37

David P. Baron, "Regulation of Prices and Pollution under Incomplete Information,"  Journal of Public Economics 1985:211-231

Economics of Monitoring (H Nov 12, 17)

W. Kip Viscusi and Richard Zeckhauser, "Optimal Standards with Incomplete Enforcement,"  Public Policy 27(Fall 1979): 437-456.

Carol A. Jones, "Standard Setting With Incomplete Enforcement Revisitied,"  Journal of Policy Analysis and Management, 8(1990):72-87

16.  Markets for Pollution Control(H Nov 19, 24)

W. David Montgomery, "Markets in Licenses and Efficient Pollution Control Programs,"  Journal of Economic Theory 5(1972):395-418.

17.  Other Topics in Pollution Control ( B  Nov 26, Dec 3 and Dec 5)

Garbage and Recycling

Lecture notes on garbage; on California recycling

Kinnaman,-Thomas-C; Fullerton,-Don The Economics of Residential Solid Waste Management
 National Bureau of Economic Research Working Paper: 7326 August 1999; 31
http://www.nber.org/papers/w7326

Fullerton, Don, and Woverton, Ann.  Two Generalizations of a Deposit Refund Systems
National Bureau of Economic Research Working Paper: 7505 Jaunary 2000
http://www.nber.org/papers/w7505
 

 Kinnaman,-Thomas-C; Fullerton,-Don Garbage and Recycling with Endogenous Local Policy
 Journal-of-Urban-Economics. November 2000; 48(3): 419-42
 

P. Berck, et al.  California Recyling Study
 

Bohm.  Deposit Refund Systems.  Johns Hopkins/Resources for the Future.

Agricultural Pollution--Manure.

 Roe,-Brian; Irwin,-Elena-G; Sharp,-Jeff-S Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions
American-Journal-of-Agricultural-Economics. May 2002; 84(2): 259-78

Innes,-Robert The Economics of Livestock Waste and Its Regulation
American-Journal-of-Agricultural-Economics. February 2000; 82(1): 97-117

    Livingston.  "The Manure hits the Land."  AJAE forthcoming

Peter's lecture notes on manure

Pollution from Automobiles.

Lecture notes on autos

Motor Vehicles and the Environment
Winston Harrington and Virginia D. McConnell
April 2003 | Executive Summary
http://www.rff.org/rff/Documents/RFF-RPT-carsenviron.pdf

Kling,-Catherine-L Emission Trading vs. Rigid Regulations in the Control of Vehicle Emissions
 Land-Economics. May 1994; 70(2): 174-88
http://uclibs.org/PID/14674    and search from there.  You can get a readable .pdf if you persevere
 

Rubin,-Jonathan; Kling,-Catherine, An Emission Saved Is an Emission Earned: An Empirical Study of Emission Banking for Light-Duty Vehicle Manufacturers
 Journal-of-Environmental-Economics-and-Management. November 1993; 25(3): 257-74
 http://www.sciencedirect.com/science/journal/00950696  and search from there.
 

Fullerton,-Don; West,-Sarah-E Tax and Subsidy Combinations for the Control of Car Pollution
 National Bureau of Economic Research Working Paper: 7774 July 2000; 29
http://www.nber.org/papers/w7774

and a small selection of demand for gasoline:

William C. Wheaton.  "The Long-Run Structure of Transportation and Gasoline Demand"  Bell Journal of Economics.  13(1982)2:439-454
Stable URL: http://links.jstor.org/sici?sici=0361-915X%28198223%2913%3A2%3C439%3ATLSOTA%3E2.0.CO%3B2-8