EEP 101/ECON 125 Environmental Economics

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EEP 101/ECON 125 Environmental Economics

• David Zilberman
• 2060 Valley Life Sciences Building,
• Tuesdays Thursdays, 930-1100 a.m.
• Class website http//are.berkeley.edu/courses/EEP
  101/spring03/
• Office hours Thurs., 330-500 p.m.
• 337 Giannini Hall

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G.S.I.'s

• Yanhong Jin jin_at_are.Berkeley.edu
• Guanming Shi gshi_at_are.Berkeley.edu

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Textbooks (Optional)

• Tietenberg, Tom. Environmental and Natural
  Resource Economics. Fifth Edition, Reading,
  Massachusetts Addison Wesley Longman, Inc.,
  2000.
• Hartwick, J., and N. Olewiler. The Economics of
  Natural Resource Use. New York Harper Row,
  1986.
• Carlson, Gerald A., David Zilberman, and John A.
  Miranowski. Agricultural and Environmental
  Resource Economics. New York Oxford University
  Press, 1993.
• Online class notes.

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Grading

• Option 1 No final paper
• 50 final, 30 midterm, and 20 homework.
• Option 2 With final paper
• 66.6 grade of option 1, 33.3 grade of paper.
• Paper15 pages on an environmental economics
  topic consisting of survey of literature,
  interviews, analysis, etc. Examples
• -Water markets in California
• -Policies to contain climate
• -Economics of the Endangered Species Act

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Outline

• Lecture 1 Introduction
• Lecture 2 When Is a Market Socially Optimal?
• Lectures 3-4 Production Externalities
• Lecture 5 Positive Externalities
• Lecture 6 Coase Theorem and Liability Roles
• Lecture 7 Externalities and the Selection of
  Policy Tools Other Considerations
• Lectures 8-9 Externalities and Technology
  Adoption
• Lecture 10 Environmental and Health Risks
• Lecture 11 Waste Management
• Lectures 12-13 Public Goods

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Outline (continue)

• Lectures 14-15 Endangered Species, Targeting
• Lectures 16-17 Valuation of Environmental
  Benefits
• Lecture 18 Key Elements of Dynamic Systems
• Lectures 19-20 Dynamic Aspects of Environ.
  Policies
• Lectures 21 -23 Water Allocation and Quality
  Policies
• Lecture 24 Pesticide Economics
• Lecture 25 Biotechnology
• Lectures 26-27 International Environmental
  Issues
• Lecture 28 Environment and Development
• Lecture 29 Review

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What Is Environmental Economics?

• How to use economic principles to better manage
  the environment and the economy.
• Guiding principles
• Anthropocentric emphasishuman concern for and
  benefits from nature justifies policy
  intervention.
• Interdisciplinary emphasisscientific knowledge
  becomes part of the input to the economic
  analysis.
• Policy emphasismarket failures cause pollution
  control and environmental conservation policies.
• Issue orientation.

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Major Issues and Problems

• Pollution controlcarrot sticks awareness guilt
• Valuation of environmental amenities.
• Conservation policies and environmental
  protection.
• Water, air, and soil protection.
• Climate change.
• Sustainability of endangered species.
• Risk management.

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The major association of environmental
economists is the Association of Environmental
and Resource Economics (AERE). Its journal is
JEEE. Environmental economics is supported by the
EPA, USDA, and the U. S. Army Corps of Engineers.

Environmental economists are employed by federal
and state governments, developers, environmental
groups, and lawyers.
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The society facilitates understanding between
economists and ecologists
and

the integration of their thinking into a
trans-discipline aimed at developing a

sustainable world.
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Agricultural economists emphasize research on
environmental issues including water,
pesticides, animal waste, soil
erosion, agricultural biotechnology, etc. Their
association is the AAEA, and the journal is
AJAE.
Agricultural economists emphasize research on
environmental issues including water pesticides
animal waste, soil erosion,ag biotech etc.
Their association AAEA journal AJAE
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Interdisciplinary Journals

• Science American Academy of Science
• Nature
• Water Resources Research American Geological
  Union
• Natural Resources Modeling
• Journal of Amer. Statistical Assoc. American
  Statistical Association
• Management Science Management Science Society
• The Economist
• Choices
• Resources
• Challenge
• California Agriculture