F1ES 4005 - Environmental and Resource Economics

The course will provide an introduction to the economic analysis of natural resources. The students will learn how complex natural processes (geological extraction, pollutant diffusion, population dynamics) can be incorporated into economic models, and how this can improve our understanding of scarcity – one of the most fundamental concepts of economics. It will discuss and compare policy solutions for optimal resource management (regulations, incentives, quotas, etc.). The analysis will be applied to minerals, fossil fuels, fisheries, forestry, water, wind and, crucially, climate change. It will also emphasize how natural resource problems interact with other, more general economic problems such as imperfect competition, imperfect information and bounded rationality. Particular attention will be paid to equity issues, both within and across generations. Centered on economic concepts – that of market failure in particular –, the course will use a broader framework and make connections with other disciplines such as law, psychology, sociology, technology and ethics.

The analysis will combine simple mathematical modelling with extensive case studies.

Learning Outcomes:

• Make sound economic arguments, based on the notions of optimality, scarcity, market failure
• Be critical about the legal, ethical, social and political implications of economic arguments
• Make sensible policy recommendations, reconciling efficiency, fairness and acceptability

Professional Skills:

Efficient writing and oral presentation.

Some background in economics is a plus but it is not mandatory.

Wooclap polls will be extensively used to illustrate the course’s concepts and gather feedback on team presentations.

Two or three TA sessions will be held in addition to regular sessions.

Several surveys will give the students a chance to provide feedback.

• In Class Presence: 2 hours a week / 24 hours a semester
• In class learning activities:1 hour a week / 12 hours a semester
• Reading and Preparation for Class: 3 hours a week / 36 hours a semester
• Research and Preparation for Group Work: 3 hours a week / 36 hours a semester
• Research and Writing for Individual Assessments: 3 hours a week / 36 hours a semester