Environmental Economics: Theory And Practice

Environmental Economics: Theory and Practice.

ECO 324

Spring 2014

TTH 12:45-2:00

Room 346 FCB

Instructor: Dr. Dean Smith

Office: 304 FCB, 523-7396

Office Hours: TTh 2-3:3000 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:

1.  To develop an understanding of the environmental issues resulting from economic activity. (Sustainability)

2.  To understand how these issues are relatively new to the human experience and to appreciate the normative aspects of the issues. (Sustainability)

3.  To develop an understanding of the theory of and behind the various schools of thought regarding environmental economics. (Sustainability)

4.  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. (Sustainability)

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, Addison 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 324 Readings” available for purchase in room 229 FCB

Selected readings are only available in hardcopy.

Class web site:

http://franke.nau.edu/about-the-fcb/faculty/dean_smith

Go to: http://www.franke.nau.edu/ select Faculty links, on the right side select the Faculty link. Scroll down to my picture for the link and then ECO 324 Environment

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:

Position papers: each student will write two position papers - 3-5 pages in length - during the semester. The topics will be assigned by the instructor. Each assignment will include a percentage of the grade devoted toward writing style. All papers must include properly documented references to all source material. Failure to do so will result in a failing grade on the assignment.

1. Shasta Dam Expansion

The Shasta Dam in northern California is a vital cog of the Central California Project. While building the dam for flood control, water provision and electricity production, the confluence of three rivers - centered on the Sacramento River were flooded. The resulting Shasta Lake has become a tourism focus. Simultaneously, the dam's environmental impact on salmon and other species has become controversial. There is a current discussion to raise the upper level of the dam in order to increase water storage and consistency.

A recent report was concluded as such: "The billion dollars it would cost to raise the dam holding back the largest reservoir in California would, at least on the surface, be money well spent, a federal study concluded thisweek."

Students with a randomly assigned number of 1 will write in favor of expanding the dam. Students with a number 2 will write against expanding the dam. My number is _____

2. Horn Trade Legalization

International trade in elephant ivory has been banned by CITES since 1990 with the exception of two sales held by the governments of elephant range states in 1999 and 2008. At a recent conference it was stated: "'We meet at a time when the illegal killing and illegal trade in African elephants and rhinoceros have reached the highest levels in over a decade," John Scanlon told a gathering of those who govern international trade in protected wildlife on behalf of 175 governments."

Furthermore: "This week the Standing Committee will consider a new report examining a possible mechanism for a future legal international trade in ivory that proposes the creation of an ivory sales body, the Central Ivory Selling Organisation, modeled after the De Beers diamond cartel."

Students with a randomly assigned number of 1 will write in favor of continuing the ban on the trade of animal horns. Students with a number 2 will write of discontinuing the ban on the trade of animal horns. My number is _____

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.

Mind Mapping

Students will be separated into teams of 5-6 per team. Tim Flannery’s important book Now or Never will form the focus of discussions within the team. Several class periods are set aside for team discussion. It is imperative that all students read the assigned chapters prior to the discussion session. Any student with an unexcused absence will earn an additional penalty of 20% of the possible grade on the assignment. Based on the consensus of the rest of the team, any student clearly not prepared for a discussion will receive a reduction of 10% of the possible grade. Each team will submit a Mind Map for the ECONOMIC issues involving climate change. No such map can be a complete discussion of climate change, so the grades will be evaluated on thoughtfulness and detail of a specific sub-section of climate change issues. All students will receive the same base grade with penalties assessed as above.

Grading System:

Discussion paper 1 20%

Discussion paper 2 20%

Exam 1 15%

Exam 2 15%

Mind Map 5%

Final Exam 25%

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:

You are expected to attend all class periods.

You are responsible for all material presented in the classroom and assigned readings. You are also responsible for all schedule changes and other announcements made in class: if an exam date is changed, and you miss the exam, then you cannot use the excuse that the original date was changed!

Due to the technical nature of this course, it is highly unlikely that infrequent attendance will result in a passing grade.

This is a junior level course and you are expected to treat it as such with a level of academic maturity. It is expected that you will have read the assigned material prior to class. The student is fully responsible for all the material discussed in class and the assigned reading. For each unexcused absence, a reduction in the semester grade will be made equivalent to 5% (half a letter grade) of the overall available grade. You MUST inform me of your expected absence BEFORE you miss a class.

Only official university approved absences must allow you to miss an exam. Note: simply visiting the health center is not an excuse. You MUST inform me of your expected absence BEFORE you miss an exam. Make up exams may be given after consultation between the student and the instructor.

In this class, and every other class, you should expect to spend a minimum of 2 hours outside of class for every class hour. In our case, this means 2 hours of study for every class period. You should visit the LAC if you are having trouble keeping up. The LAC offers a variety of programs on study skills. Feel free to stop by my office at any time if you need help or guidance.

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.

References

All papers will include a properly formatted bibliography. Any use of specifically quoted data or specifically quoted language must be cited within the text with parenthetical references such as (Smith, 2010, page 34). In addition to the required readings, you should be using additional materials dependent on your specific topic.

Cline Library has numerous useful websites posted on their Citation & Style Guides page.

HYPERLINK "http://library.nau.edu/cf/info/refresources.cfm?subject=Citation%20&%20Style%20Guides" http://library.nau.edu/cf/info/refresources.cfm?subject=Citation%20%26%20Style%20Guides

Cline Library has numerous useful websites posted on their Writing Resources page.

HYPERLINK "http://library.nau.edu/cf/info/refresources.cfm?subject=Writing%20Resources%20" http://library.nau.edu/cf/info/refresources.cfm?subject=Writing%20Resources

Wikipedia is considered a very bad source for material.

Plagiarism: as quoted from University of British Columbia, (2011) "APA Citation Style", HYPERLINK "http://web.ubc.ca/okanagan/library/citations/apa.html" http://web.ubc.ca/okanagan/library/citations/apa.html, accessed January, 11,2011.

"What kinds of sources do I document?

·  direct quotations from a book, article, film, letter, email, lecture, etc.

·  single words, short phrases, sentences and longer passages quoted from books, articles etc.

·  ideas you draw from a source but present entirely in your own words

·  paraphrases and summaries of books, journal articles, pamphlets

·  single words, short phrases, sentences and longer passages quoted from books or articles used

·  statistics"

FCB Business Communication Center

At all stages of the project, and for the 3 required Executive Summaries, you are encouraged to utilize the resources of the BCC. The website is listed below.

HYPERLINK "http://www.franke.nau.edu/StudentResources/commcenter/%20" http://www.franke.nau.edu/StudentResources/commcenter/

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. 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 and promote the safety of all individuals within the university. The goal of this policy is to prevent the occurrence of discrimination on the basis of sex, race, color, age, national origin, religion, sexual orientation, disability, or veteran status and to prevent sexual harassment, sexual assault or retaliation by anyone at this university.

You may obtain a copy of this policy from the college dean’s office or from the NAU’s Affirmative Action website http://home.nau.edu/diversity/. 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), 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 Disability Resources (DR) at 523-8773 (voice)or 523-6906 (TTY), (e-mail)or 928-523-8747 (fax).Students needing academic accommodations are required to register with DR and provide required disability related documentation. Although you may request an accommodation at any time, in order for DR to best meet your individual needs, you are urged to register and submit necessary documentation (www.nau.edu/dr) 8 weeks prior to the time you wish to receive accommodations. DR is strongly committed to the needs of student with disabilities and the promotion of Universal Design. Concerns or questions related to the accessibility of programs and facilities at NAU may be brought to the attention of DR or the Office of Affirmative Action and Equal Opportunity (523-3312).

Institutional Review Board

Any study involving observation of or interaction with human subjects that originates at NAU—including a course project, report, or research paper—must be reviewed and approved by the Institutional Review Board (IRB) for the protection of human subjects in research and research-related activities.

The IRB meets monthly. Proposals must be submitted for review at least fifteen working days before the monthly meeting. You should consult with your course instructor early in the course to ascertain if your project needs to be reviewed by the IRB and/or to secure information or appropriate forms and procedures for the IRB review. Your instructor and department chair or college dean must sign the application for approval by the IRB. The IRB categorizes projects into three levels depending on the nature of the project: exempt from further review, expedited review, or full board review. If the IRB certifies that a project is exempt from further review, you need not resubmit the project for continuing IRB review as long as there are no modifications in the exempted procedures.