Economics 311

Economics of the Environment

Fall 2004

“This place has changed for good

Your economic theory said it would.”

- Sting

Instructor: / Allen S. Bellas, Ph.D.
Office: / Room 804, Minneapolis Campus, 730 Hennepin Ave.
Office Hours: / Wednesday 11:00 a.m. - 4:00 p.m., Thursday 1:00 p.m. – 4:00 p.m. at Minneapolis and 5:00 p.m. – 6:00 p.m. at Midway, Saturday 8:00 a.m. – 9:00 a.m. (at St. Paul) and by appointment
Messages: / 612-659-7272 (office) 612-659-7268 (fax). Please call my office to notify me of an incoming fax. Please include the following information on all faxes: your name, my name, and the course name. My e-mail address is:
Textbook: / Environmental Economics by Barry C. Field and Martha K. Field (3rd edition). FF
Public Policies for Environmental Protection by Paul Portney and Robert Stavins (2nd edition). PS
Textbooks can be ordered from efollett.com or or the bookstore (651-772-7651)
My Web Site:
Grading: / Assignments 33%
Exam #1 33%
Exam #2 33%

Course Description: This course explores the economic aspects of environmental issues and regulations. Current incentives to degrade or preserve the environment are presented and the impacts of present policies on those incentives are established. The tools of economic analysis are used to evaluate problems and suggest solutions. Prerequisite: ECON 202 Microeconomics

Competence Statement: Knows and understands environmental economics at the intermediate economics level. Concepts understood include: analytical tools of environmental analysis such as benefit-cost analysis, impact analysis, cost-effectiveness analysis, and risk analysis; criteria for evaluating environmental policies; public policy approaches to environmental issues; environmental policy in the United States and other countries, global environmental issues, and the economics of international environmental agreements.

Student Competencies:

To know and understand the economics of environmental quality and analytical tools of environmental analysis.

To demonstrate knowledge of the criteria for evaluating environmental policies.

To demonstrate knowledge of the public policy approaches to environmental issues.

To demonstrate knowledge of the current and past environmental policy in the United States and other countries.

To apply economic principles to real-world environmental issues.

Students requesting accommodations for disabilities must register with the Office for Disabilities and Special Services (651-793-1540) as early as possible. If you have a documented learning disability, or if you suspect you have a learning disability which may impact your opportunity to succeed in this course, call the Office for Disabilities and Special Services right away so that you can explore possible ways to reasonably accommodate your learning style.

Course Schedule

Week

/ Topic/Assignment
8/26 / FF CHAPTER 1. WHAT IS ENVIRONMENTAL ECONOMICS?
FF CHAPTER 2. THE ECONOMY AND THE ENVIRONMENT
9/2 / FF CHAPTER 3. BENEFITS AND COSTS, SUPPLY AND DEMAND
FF CHAPTER 4. ECONOMIC EFFICIENCY AND MARKETS
9/9 /
FF CHAPTER 5. THE ECONOMICS OF ENVIRONMENTAL QUALITY
FF CHAPTER 6. FRAMEWORKS OF ANALYSIS
9/16 / FF CHAPTER 7. BENEFIT-COST ANALYSIS: BENEFITS
ASSIGNMENT #1 DUE
9/23 / FF CHAPTER 8. BENEFIT-COST ANALYSIS: COSTS
FF CHAPTER 9. CRITERIA FOR EVALUATING ENVIRONMENTAL POLICIES
9/30 / Exam #1
10/7 / FF CHAPTER 10. DECENTRALIZED POLICIES: LIABILITY LAWS, PROPERTY RIGHTS, VOLUNTARY ACTION
FF CHAPTER 11. COMMAND-AND-CONTROL STRATEGIES: THE CASE OF STANDARDS
PS CHAPTER 2: EPA AND THE EVOLUTION OF FEDERAL REGULATION
10/14 / FF CHAPTER 12. INCENTIVE-BASED STRATEGIES: EMISSION CHARGES AND SUBSIDIES
FF CHAPTER 13. INCENTIVE-BASED STRATEGIES: TRANSFERABLE DISCHARGE PERMITS
PS CHAPTER 3: MARKET-BASED ENVIRONMENTAL POLICIES
10/21 / FF CHAPTER 14. FEDERAL WATER POLLUTION-CONTROL POLICY
PS CHAPTER 6: WATER POLLUTION POLICY
ASSIGNMENT #2 DUE
10/28 / FF CHAPTER 15. FEDERAL AIR POLLUTION-CONTROL POLICY
PS CHAPTER 4: AIR POLLUTION POLICY
11/4 / FF CHAPTER 16. FEDERAL POLICY ON TOXIC AND HAZARDOUS SUBSTANCES
PS CHAPTER 7: HAZARDOUS WASTE AND TOXIC SUBSTANCES POLICIES
11/11 / FF CHAPTER 17. STATE AND LOCAL ENVIRONMENTAL ISSUES
11/18 / FF CHAPTER 18. ENVIRONMENTAL ISSUES IN OTHER INDUSTRIALIZED COUNTRIES
FF CHAPTER 19. ECONOMIC DEVELOPMENT AND THE ENVIRONMENT
ASSIGNMENT #3 DUE
11/25 / No Class – Thanksgiving
12/2 / FF CHAPTER 20. THE GLOBAL ENVIRONMENT
FF CHAPTER 21. INTERNATIONAL ENVIRONMENTAL AGREEMENTS
PS CHAPTER 5: CLIMATE CHANGE POLICY
12/9 / Final Exam

DEADLINES/RULES

1) Class attendance is recommended but not required. Students usually find that attending class significantly enhances their learning.

2) I rarely give make-up exams; however I will make an exception if you have a valid reason (e.g. illness, family or business concerns) and contact me (via email or voice mail) no later than 24 hours after the start of the exam.

3) Make-up exams must be taken at the St. Paul (651-793-1533) testing center and completed within one week of the originally scheduled exam.

4) There will be absolutely no make-ups for homework. I will review the homework in class on the due date so if you turn the homework in late without my permission I will review it but you will not receive credit for it. If you are unable to attend class on the day an assignment is due you must arrange for submission of your homework assignment via fax, email, or postal mail.

5) Extra credit assignments are not offered.

6) Incompletes must be arranged with me prior to the last day of class and will conform to official university policy. A grade of incomplete may be considered if the person requesting has successfully completed at least half of the course and is a student in good standing in the course. “Good standing” means the requester is earning a passing grade (C- or better) and has attended class regularly. I reserve the right to refuse a request for an incomplete.

7) The last day to drop this class and request a refund is August 29, 2004.

8) The last day to withdraw from this class is November 14, 2004.

WORLD WIDE WEB ECONOMIC RESOURCES:

Your Textbook /
Resources for the Future /
The Dismal Scientist /
Resources for Economists on the Internet /
Bureau of Labor Statistics /
The Economist Magazine /
On the Issues /
Iowa Electronic Markets /
Central Banking Resource Center /
National Debt Clock /
US Congress /
Federal Reserve Board of Governors /

OTHER THINGS TO KNOW ABOUT THIS COURSE

1) Exams will be in the form of short essay questions and problems. I do not use true-false, multiple-choice, or fill-in-the-blank questions. You will have three hours and twenty minutes to complete each exam. The exams are closed-book and you are not permitted to take notes into the exams.

2) I do not “take away” points when I grade; you earn points with your answers. Your score starts at zero and goes up, not at 100% and goes down.

3) You do not earn points by “fishing”. Correct, but irrelevant, statements earn no credit.

4) Your answers must be precise. Try to avoid non-specific words such as “it” or “this”. For example, do not say “it would not be good to do this”; rather “this economic policy would be ineffective because …”

5) Plagiarism is a serious matter that will not be treated lightly. Possible sanctions include warning, course failure or grade change, probation, suspension or expulsion. The following is an excerpt from the Student Handbook (

Plagiarism

In simple terms, plagiarism is using another person’s words or ideas and presenting them as your own, without acknowledging the original source. This is a very serious offense and is grounds for expulsion.

Plagiarism often takes the form of a student copying information from one source and presenting it in a paper or report without the use of footnotes or direct mention of the source in the body of the paper. Naturally, students are expected to read and use a variety of sources when writing a paper, but when the exact words (or words with slight modification) or ideas of others are used, the sources should be properly acknowledged. When instructors read student papers, they want to know which ideas are the student’s and which belong to other sources.

It is also unacceptable to submit another person’s paper or examination as your own. In such cases, instructors may impose sanctions such as a failing grade. If you have questions about the use of footnotes or other notations, talk to your instructor, consult William Coyle’s Research Papers, available at the university bookstore or you can seek assistance in the proper way of writing a paper by contacting the Writing Center.

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