The lectures will be delivered in several block sessions to be held at Macquarie University. Refer to Timetable for most updated block session dates.
Details of Block Sessions:
First Block Session will be held on March 18 and 19 (9 am to 5 pm)--Lectures
Second Session will be held on March 25 and 26 (9 am to 5 pm)--Lectures
Third session will be held on April 29 (9 am to 5 pm)--Lab Sessions
Final session will be held on May 27 (9 am to 5 pm)--Presentations.
Attendance is required for ALL teaching days noted above.
Reading and Course Preparation Guide
Students will find the below books useful for an introduction to environmental economics--
Environmental Economics: An Introduction (Mcgraw-Hill) by Barry C. Field and Martha K. Field (7th edition)
Environmental and Natural Resource Economics, 10/e, by T. Titenberg and L. Lewis (Pearson Global Edition)
These books are available in the MQ library. However, students may wish to own a copy of either or both books.
The list of topics and reading guides are given below:
This list is not exhaustive, further details will be available on the materials placed on iLearn.
1. The Environment and the Economy
- Introduction to Basic Micro Economics
- Need for Environmental Economics
- Willingness to Pay (WTP)
- Demand Function
- Consumer Surplus
- Cost Benefit Analysis (CBA)
- Discounting the Future
- CBA under uncertainty
- Green Accounting/Sustainability
- Case Study
2. Market and the Environment
- Economic Efficiency
- Market Failure
- Property Rights
- Insurance Markets for Natural Hazards
- Case Study: Are you being Served?
- Case Study: Elephants
3. Environmental Valuation
- Valuation Methods
- Contingent Valuation
- Hedonic Valuation Method
- Travel Cost Valuation Method
- Value of Water/Managing water scarcity in Australia
- Payment for Ecosystem Services
4. Economics of Climate Change Mitigation and Adaptation
- Scientific Evidence and Understanding
- Integrating with Economics
- Empirical Estimation of Costs and Benefits
- Economic Management tools and Cost Benefit Analysis
- Discounting and Time Preference
- Thermohaline Circulation Belt /Permafrost
5. Trade and the Environment
- Environmental Kuznets Curve
- Taxes Versus Quotas
- Trade and the Environment
- Hysteresis and Resilience
- Measuring Health Impacts of Pollution
6. Economics of Renewable and Non-Renewable Resource Management
- Economics of non-renewable resource extraction
- Economics of oil and coal extraction
- Economics of renewable resource extraction
- Fisheries, Forestry
- Challenges in fisheries Management
7. Economics of Urban Planning
- Theory of origin of urban areas
- What are some of the tools available to the city planner to maximize societal welfare in urban areas?
- Problems and challenges in applying those tools
- Rent control and Property Taxes
- Case Study
8. Economics of Transportation Infrastructure/Biofuels
- Economics of Providing Transport Infrastructure
- Use of Renewable Resources in Transportation
- Rebound Effect
- Global Warming, Energy Use and Transportation Linkage
- Political Economy of Urban Transportation
- Congestion Pricing
9. Economics of Urban Sprawl
- Factors causing urban sprawl
- Three types of Market Failures ( for Urban Sprawl)
- Costs and Benefits of Land Use Planning
- Managing Sprawl
- Agriculture and Urban Sprawl
- Sprawl and the Environment
Supplementary Reading List
***are recommended, ** are additional readings, * are technical papers
(The aim of providing this guide is to facilitate advance preparation for on-campus lecture/discussion sessions. Students will be expected to use the information in the below readings while preparing their projects. The topics and methods used for the projects will be explained during the first session in class)
In addition, students should pay particular attention to articles published in Rev Environ Econ Policy (http://reep.oxfordjournals.org/) as papers published here can provide a comprehensive account of below topics without getting into much technical detail.
Cost Benefit Analysis/Inter-Generational Choice/Uncertainty
***Hanley, N. (1992): Are there environmental limits to cost benefit analysis? Environmental and Resource Economics, Volume 2, Number 1, 33-59
***Dasgupta, P. (1996): The Economics of the Environment. Environment and Development Economics, 1, 387-429.
***Pearce, D. W. (1976): Cost-Benefit Analysis and Environmental Policy. Oxford Review of Economic Policy, vol. 14 (4):
**d'Arge, R. C., W. S. Schulze, and D. S. Brookshire. (1982): Carbon Dioxide and Intergenerational Choice. American Economic Review, 72, 251-256.
*Graham, Daniel A. (1981): Cost-Benefit Analysis under Uncertainty. American Economic Review, 71, 715-725.
*Norgaard, R. B., and R. B. Howarth (1991). Sustainability and Discounting the Future. In R. Costanza (Ed.), Ecological Economics (pp. 525p). New York: Columbia University Press.
Pollution Regulation, Markets and Property Rights
***Krugman, P. (2010): California Death Spiral, NYT, Feb 19, 2010
***Phaneuf, D. (2007): The Economics of Pollution Control, Agricultural and Resource Economics • May/June 2007
***Oates, W. E. (1995): Green Taxes: Can We Protect the Environment and Improve the Tax System at the Same Time? Southern Economic Journal 61, pp. 914-922.
***Goulder, L. H. (1995): Environmental Taxation and the Double Dividend: A Reader’s Guide.International Tax and Public Finance 157-183.
***Viscusi, W. K. (1996): Economic Foundations of the Current Regulatory Reform Efforts. Journal of Economic Perspectives, 10(3), 119-134.
***Anderson, S.T., I.W.H. Parry, J.M. Sallee and C. Fischer (2011): Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives, Rev Environ Econ Policy (2011) 5 (1): 89-108.
***Convery, F. (2011): Reflections-Energy Efficiency Literature for Those in the Policy Process, Rev Environ Econ Policy, 5(1): 172-191
***Carson, R.T. (2010): The Environmental Kuznets Curve: Seeking Empirical Regularity and Theoretical Structure, Rev Environ Econ Policy 4(1): 3-23.
**Mäler, Karl-Göran and C. Olsson (1990): The cost-effectiveness of different solutions to the European sulphur problem, European Review of Agricultural Economics, vol 17, pp 153-166
*Pizer, W. A. (1997): Prices vs. Quantities Revisited: The Case of Climate Change. Working Paper, Resources for the Future, Washington, D.C.
*Mendelsohn, R. (1986): Regulating Heterogeneous Emissions. Journal of Environmental Economics and Management, 13, 301-312.
*Keohane, N., R. Revesz, and R. Stavins (1998). The Choice of Regulatory Instruments in Environmental Policy. Harvard Environmental Law Review, volume 22, number 2, pp. 313-367
*Kerr, S., and D. Maré. (1997): Efficient Regulation Through Tradeable Permit Markets: The United States Lead Phasedown, Department of Agricultural and Resource Economics, University of Maryland, College Park, Working Paper 96-06.
*Green, R. J., and D. M. Newbery (1992): Competition in the British Electricity Spot Market. Journal of Political Economy, 100(5), 929-953.
*Hanley, N., J. Shogren, and B. White (1997): Environmental Economics. Theory and Practice. Oxford and London: Oxford University Press and MacMillan Publishers, p. 464.
*Stephen S. and J. Swierzbinski (2006): Assessing the performance of the UK Emissions Trading Scheme, Environmental and Resource Economics, 37(1), pp 131-158, 2007.
*Suzi K. and D. Maré (1998): Transaction Costs and Tradable Permits. The United States Lead Phasedown, mimeo, Motu Research Trust, NZ.
* Lofgren A. and H. Hammar (2000): The phase-out of leaded gasoline in the EU: a successful failure? Transportation Research Part D, 419-431.
*Weitzman, M. L. (1974): Prices vs. Quantities. Review of Economic Studies, 41, 477-491.
***Barbier, E. B. (2012): Progress and Challenges in Valuing Coastal and Marine Ecosystem Services, Rev Environ Econ Policy, forthcoming
***Economist (2005): Are You Being Served, April 21, 2005.
**Randall, A. (1991): The Value of Biodiversity. Ambio, 20(2), 64-68.
***Cork, S. J., D. Shelton (2000): The Nature and Value of Australia’s Ecosystem Services: A Framework for Sustainable Environmental Solutions, (http://www.ecosystemservicesproject.org/html/publications/docs/Qld_Env_Conf_Paper.pdf)
**Kirkpatrick S. (online): The Economic Value of Natural and Built Coastal Assets (http://www.nccarf.edu.au/settlements-infrastructure/node/79)
*Hanemann, W. M. (1991): Willingness to Pay and Willingness to Accept: How Much Can They Differ? American Economic Review, 81, 635-647.
*Ward, F.A., and J. B. Loomis. (1986): The Travel Cost Demand Model as an Environmental Policy Assessment Tool: A Review of the Literature. Western Journal of Agricultural Economics, 11, 164-178.
*Palmer, K., A. Krupnick, H. Dowlatabadi, and S. Siegel (1995): Social Costing of Electricity in Maryland: Effects on Pollution, Investment and Prices. The Energy Journal, 16(1), 1-26.
*Coursey, D. L., J. J. Hovis, and W. D. Schulze (1987): The Disparity between Willingness to Accept and Willingness to Pay Measures of Value. Quarterly Journal of Economics, 102, 679-690.
*Cameron, T. A. (1992) Combining Contingent Valuation and Travel Cost Data for the Valuation of Nonmarket Goods. Land Economics, pp. 302-317.
*Carson, R. T. and R. C. Mitchell. (1993): The Value of Clean Water: Willingness to Pay for Boatable, Fishable, and Swimmable Water quality. Water Resources Research VOL. 29, NO. 7, PP. 2445-2454, 1993
*Chakravorty, U., J. Roumasset, and K. Tse (1997): Endogenous Substitution among Energy Resources and Global Warming. Journal of Political Economy, 105, 1201-1234.
Trade and the Environment
***Levinson, A. (2010): Offshoring Pollution: Is the United States Increasingly Importing Polluting Goods?Rev Environ Econ Policy, 4(1): 63-83
***Fischer, C. (2010): Does Trade Help or Hinder the Conservation of Natural Resources, Rev Environ Econ Policy, 4(1): 103-121
*Chichilniskly, G. (1994): North-South Trade and the Global Environment. American Economic Review, 84(4), 851- 874.
*Chichilnisky, G. (1997): What Is Sustainable Development. Land Economics, 73, 476-491.
*Copeland, B. R., and M. S. Taylor (1994): North-South Trade and the Environment. Quarterly Journal of Economics, 109(3), 755-787.
*Grossman, G. M., and A. B. Krueger (1995): Economic Growth and the Environment. Quarterly Journal of Economics, 110(2), 353-377.
Renewable Resource Management
***Binswanger, H.C. and R.N. Chakraborty (2000): The Economics of Resource Management
***Schmalensee, R. (2012): Evaluating Policies to Increase Electricity Generation from Renewable Energy,Rev Environ Econ Policy, forthcoming
***Heal, G. (2010): Reflections—The Economics of Renewable Energy in the United States, Rev Environ Econ Policy, 4(1): 139-154
**Rajagopal, D. and D. Zilberman (2007): Review of Environmental, Economic and Policy Aspects of Biofuels, Policy Research Working Paper, 4341, World Bank,
*Pfaff, A. S. P. (1999): What Drives Deforestation in the Brazilian Amazon? Evidence from Satellite and Socioeconomic Data. Journal of Environmental Economics and Management, 37(2), 26-43.
*Mitra, T., and H. Y. Wan, Jr. (1986): On the Faustmann Solution to the Forest Management Problem.Journal of Economic Theory, 40, 229-249.
*Mitra, T., and H. Y. Wan, Jr. (1985): Some Theoretical Results on the Economics of Forestry. Review of Economic Studies, 52, 263-282.
*Conrad, J. M. (1989): Bioeconomics and the Bowhead Whale. Journal of Political Economy, 97, 974-987.
*Clark, C. W. (1973): The Economics of Overexploitation. Science, 181, 630-634.
*Clark, C. W. (1990): Mathematical Bioeconomics: The Optimal Management of Renewable Resources. (2 ed.). NewYork: Wiley Inter-Interscience, John Wiley and Sons, Inc.
*Clark, C. W., and G. R. Munro. (1975): Economics of Fishing and Modern Capital Theory: A Simplified Approach. Journal of Environmental Economics and Management, 2, 91-106.
Externalities, Coase Theorem and Property Rights
***Coase, R. H. (1960): The Problem of Social Cost. Journal of Law and Economics, 3, 1-44.*Oates, W. E. (1983): The Regulation of Externalities: Efficient Behavior by Sources and Victims. Public Finance, 38, 362-375.
*Stavins, R. N. (1995): Transaction Costs and Tradeable Permits. Journal of Environmental Economics and Management 29, 133-148.
*Freeman, A. M. (1984): Depletable Externalities and Pigouvian Taxation. Journal of Environmental Economics and Management, 11, 173-179.
Non Renewable Resources and Green Growth
***Crandall, Robert W. (1992): Corporate Average Fuel Economy Standards. Journal of Economic Perspectives, 6(2), 171-180. ***Poterba, J. (1994): Is the Gasoline Tax Regressive? Tax Policy and the Economy, 5, 145-164.
**Godek, P. E. (1997): The Regulation of Fuel Economy and the Demand for Light Trucks. Journal of Law and Economics, 40(October), 495-509.
Managing Global Warming and Environmental Catastrophes
***Keller, K., G. Yohe, and M. Schlesinger (2008): Managing the risks of climate thresholds: Uncertainties and needed information. Climatic Change, 91, 5-10.
***Popp, D. (2011): International Technology Transfer, Climate Change, and the Clean Development Mechanism, Rev Environ Econ Policy, 5((1) 131-152
***Bosetti, V. and J. Frankel (2012): Politically Feasible Emissions Targets to Attain 469 ppm CO2 Concentrations, Rev Environ Econ Policy, Forthcoming,
***Scheffer, M., S. Carpenter, J. A. Foley, C. Folke & B. Walker (2001): Catastrophic shifts in ecosystems, Nature 413, 591-596 (11 October 2001)
**Kiker, C. F. and E. Putz (1997): Ecological certification of forest products: Economic challenges.Ecological Economics, 20, 37-51.
**Metrick, A. and M. L. Weitzman (1998): Conflicts and Choices in Biodiversity Preservation. Journal of Economic Perspectives, volume 12, number 3, pp. 21-34.
*Krutilla, J. V. (1964): Conservation Reconsidered. American Economic Review, 57, 777-786
Land Use and Urban Planning
***Grafton, R.Q. (online): Economics of Water Reform in the Murray Darling Basin (http://www.pc.gov.au/__data/assets/pdf_file/0008/94850/subdr081.pdf)
**Ostrom, E., and R. Gardner. (1993). Coping with Asymmetries in the Commons: Self-Governing Irrigation Systems Can Work. Journal of Economic Perspectives, 7(4), 93-112.