Econ 240: Issues in Environmental Economics Spring 2017

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1 Econ 240: Issues in Environmental Economics Spring 2017 Professor: Anders Fremstad Office: C319 Clark Contact: Class meetings: T/Th 12:30-1:45 and 2-3:15pm, Military Sciences 200 Office hours: W 10:30am-noon, 1:30-3pm, and by appointment Course description Environmental economics uses economic principles to understand how society uses and misuses environmental resources. This course is an introduction to the language of economics. Becoming proficient in environmental economics will serve you beyond this classroom as a citizen engaged in environmental issues at the local, national, and international levels. The first half of the course describes the economic theory of environmental degradation. We will discuss and debate what constitutes the efficient level of pollution. We will also study benefit-cost analysis, which is how economics is applied to environment issues in practice. In the second half of the course we will address how the government has succeeded and failed to limit environmental degradation. We will analyze a variety of methods of protecting the environment, including the exchange of property rights, environmental standards, Pigovian taxes or subsidies, and tradeable pollution permits. Throughout the course, I will encourage students to apply economic principles to the environmental issues that interest you. We will conclude the semester with group presentations that use benefit-cost analysis to evaluate projects or programs with environmental impacts. Course objectives To master basic economic models of the environment To use benefit-cost analysis to examine environmental issues To communicate effectively about environmental economics in writing, in-class discussion, and group presentations Readings The required book for this course is the 7 th edition of Eban Goodstein and Stephen Polasky's Economics and the Environment. New and used copies of the book are for sale at the CSU bookstore, used copies are available online for about $70, and a digital version is available for about $40. You must acquire a copy of the text (and spend a lot of time with it). All other required readings will be made available on Canvas. Course structure Each week, I will assign about 2 hours of reading. You must complete each day s reading before attending class. The two class meetings each week will consist of my presentation of course material, discussion, and in-class work. Your grade depends partly on your attendance and participation in class. Over the course of the semester you are permitted 2 absences, no questions asked, but only if you me before class time. Any other absences will hurt your participation grade unless you document a university-recognized excuse. Over the course of the semester, we will also conduct 3 in-class experiments, which can earn you up to 2 points of extra credit, but cannot be made up if you miss class. There will be 3 homeworks over the course of the semester. Although I will not grade the homeworks, they will be excellent preparation for quizzes and exams. I highly encourage students to 1

2 solve the questions in the homeworks in small groups. Both strong and weak students gain a lot by working together. I am available to help you find the solutions to these problems in class, on Canvas, by , and in my office hours. You will be tested on the material covered in this class in two 30-minute quizzes, a 75-minute midterm exam, and a 120-minute final exam. The quizzes and exams will consist of multiple-choice and short-answer questions. Makeup exams will not be permitted without a universityrecognized excuse that you communicate to me in advance. Throughout the semester, we will apply the tools from this course to environmental issues of your choice, such as water, forests, transportation, solid waste, energy, climate change, economic development, land use, and agriculture. We will finish the semester with groups of students presenting their benefitcost analyses of specific projects or policies that impact the environment. In Week 4, I will share with you some of the projects analyzed by students in previous semesters. In Week 6, every student will post an analysis of an environmental project or policy, and the following week every student will provide detailed criticisms and suggestions to two of their peers analyses. After the midterm, we will form groups of 3 students interested in pursuing a more thorough analysis of an environmental project or policy. Groups will provide me with an outline of their analysis in Week 11 and arrange to meet with me by the end of Week 12. All groups should post an analysis of words by April 20th. We will devote 3 of the final class days to group presentations, and each group should prepare a set of slides and a 10-to-15-minute presentation of their environmental issue, to be followed by 5-10 minutes of class discussion. Grading Your final grade will be calculated as a weighted average of your grades in each of the following categories: 10% in-class participation 5% quiz 1 20% midterm exam 5% quiz 2 30% final exam 30% research project The grading scale used in this course is: A B C D A B C D A B C F 0-66 Contact hours and workload Attend lecture Readings Study practice problems for exams Research project Total ~3.0 hours/week ~2.0 hours/week ~2.0 hours/week ~2.0 hours/week ~9.0 hours/week Accommodation for students with disabilities If you require special accommodation to complete the requirements of this course, please let me know as soon as possible. The student is responsible for obtaining the appropriate verification and paper work. Academic integrity This course will adhere to the Academic Integrity Policy of the General Catalog and the Student Conduct Code. As per university policy, "Any student found responsible for having engaged in academic dishonesty will be subject to academic penalty and/or University disciplinary action." (General Catalog 2

3 , 1.6, p.8). Any academic dishonesty in this course may result in a grade of "F" for the course and may be reported to the Office of Conflict Resolution and Student Conduct Services. Please be aware that the General Catalog specifically identifies the following examples of academic dishonesty: cheating in the classroom, plagiarism, unauthorized possession or disposition of academic materials, falsification, and facilitation of cases of academic dishonesty. Plagiarism is defined as follows: "Plagiarism includes the copying of language, structure, ideas, or thoughts of another, and representing them as one's own without proper acknowledgment. Examples include a submission of purchased research papers as one's own work; paraphrasing and/or quoting material without properly documenting the source." (General Catalog , 1.6, p. 8). Copyright Please do not share material from this course in online, print or other media. Materials authored by third parties and used in the course are subject to copyright protections. Posting course materials on external sites (commercial or not) violates both copyright law & the CSU Student Conduct Code. Students who share course content without the instructor's express permission, including with online sites that post materials to sell to other students, could face disciplinary or legal action. 3

4 Schedule Date Topics Required Readings Coursework Week 1 Intro. to Env. Economics 1/17/2017 Global warming Ch. 1 1/19/2017 Tragedy of the commons Chs. 2 & 3 In-class experiment 1 Week 2 The Efficiency Standard 1/24/2017 Pareto and Coase Ch. 4 (pp ) 1/26/2017 Benefit-cost analysis Ch. 4 (pp ) Week 3 Benefits 1/31/2017 Contingent valuation Ch. 5 (pp ) 2/2/2017 Other methods Ch. 5 (pp ) Week 4 Costs 2/7/2017 Engineering costs Ch. 6 2/9/2017 Samples of benefit-cost analysis Group projects Complete HW 1 Week 5 Measuring Sustainability 2/14/2017 Strong sustainability Ch. 9 (pp ) Quiz 1 2/16/2017 Weak sustainability and discounting Ch. 9 (pp ) Week 6 Nat. Res. and Env. Services 2/21/2017 Non-renewable resources Ch. 10 (pp ) 2/23/2017 Renewable resources Ch. 10 (pp ) Post ind. B-C analysis Week 7 Consumption and Welfare 2/28/2017 Positional externalities Ch. 11 (pp ) 3/2/2017 Restraining consumption Ch. 11 (pp ) Comments for 2 peers Week 8 Review and Midterm Exam 3/7/2017 Review Chs. 1-6, 9-11 Complete HW 2 3/9/2017 Midterm! Midterm Break! 3/14/2017 3/16/2017 Week 9 Pol. Economy of Env. Regulation 3/21/2017 Politics and legislation Chs. 12 and 13 Form groups of 3 3/23/2017 Achievements and obstacles Ch. 14 Week 10 IB Regulation: Theory 3/28/2017 Pigovian taxes and tradeable permits Ch. 15 In-class experiment 2 3/30/2017 IB regulation and distribution Boyce op-ed Week 11 IB Regulation: Practice 4/4/2017 Lead, CFCs, and SO2 Ch. 16 (pp ) Submit group B-C outline 4/6/2017 Carbon emissions Ch. 16 (pp ) Complete HW 3 Week 12 Building a Better Future 4/11/2017 Promoting clean technology Ch. 17 Quiz 2 4/13/2017 Energy policy and the future Ch. 18 Group meeting with me Week 13 Global Challenges 4/18/2017 Poverty and the environment Chs. 19 and 20 In-class experiment 3 4/20/2017 Global agreements Ch. 21 Post group B-C analysis Week 14 Environmental Issues 4/25/2017 Group presentations Peers' analyses 4/27/2017 Group presentations Peers' analyses Week 15 Environmental Issues 5/2/2017 Group presentations Peers' analyses 5/4/2017 Review for final Chs. 1-6,

5 Syllabus for ECON 204: Issues in Environmental Economics Instructor ECON/AREC Section 001: TR 11:00 a.m. - 12:15 p.m. Military Science 200 Term: January, 2017 May, 2017 Website: William Haden Chomphosy William.Haden_Chomphosy@colostate.edu Office: Clark C311-F Office Hours: Tuesdays 1:00 p.m. 4:00 p.m. or by appointment COURSE PREREQUISITES: None. Note: you may not receive credit for both Econ 240 and AREC 240. COURSE DESCRIPTION Economics is the study of how society allocates goods and services in a world with scarce resources. Environmental economics uses the principles of economics to understand how environmental resources are currently managed (or how they should be managed) in an economic system based on markets. This discipline tries to identify ways to improve upon market outcomes and to create effective mechanisms to regulate economic activity to better balance economic goals with environmental goals. In this course we will explore the tools of environmental economics then apply these tools to a variety of environmental problems, including climate change, waste disposal, oil-spill disasters, acid rain, national parks, water, sustainability, etc. At the end of the semester you should have an understanding of: The role of economics in environmental decision-making The basics of markets and market failures Externalities, public goods, and open access resources Valuing the benefits of environmental protection Valuing the costs of environmental protection Efficiency criteria for evaluating environmental costs Policy tools (controls, taxes, permits) and their assessment Applications to particular pollution issues of interest Economics of renewable resources: fisheries and forests Economics of growth and the environment: development and sustainability Page 1

6 COURSE OBJECTIVES Throughout the semester you will: Learn the basic concepts and tools of environmental economics. Think critically about current environmental problems using the lens of an environmental economist. And develop the skills to communicate in an effective manner regarding environmental economics, through writing and oral presentations. This course meets the All-University Core Curriculum (AUCC) requirements for Social/Behavioral Sciences (Category 3C) and is approved under gtpathways in the content area of Economic or Political Systems (GT-SS1). REQUIRED COURSE MATERIALS Economics and the Environment, 7 th Edition Authors: Eban S. Goodstein and Stephen Polasky; ISBN (Paperback): ISBN (E-Book): You can purchase this book new from the CSU Bookstore at edu. Other helpful texts (not required): What Environmentalists Need to Know About Economics by Jason Scorse Environmental Economics, An Introduction by Barry Field and Martha Field Environmental Economics and Policy by Tom Tietenberg and Lynne Lewis Supplemental readings and other materials will be provided in Canvas, via the CSU Library electronic reserve, or by links to websites. Canvas is the course website: Here you will find additional class materials, including: lecture notes, readings, videos, presentations, news articles, assignments, and discussion posts. Page 2

7 COURSE STRUCTURE The course will be composed of lecture, homework assignments, papers, group work, and student presentation. You are expected to read assigned material prior to the class in-which the material will be discussed. There will be no attendance grades, but assignments will draw largely from lecture and assigned readings. Attending class will be very helpful in developing an understanding of environmental economics and succeeding in this course. COURSE ASSIGNMENTS AND PROCEDURES There will be four homework assignments, two papers, one presentation, and two exams. Course assignments will be made available through Canvas. All assignments are to be handed in at the beginning of class on the date they are due. Late assignments will be penalized 20% each day after it is due, unless a university approved excuse has been granted. Be responsible about turning these assignments in on time. EVALUATION AND GRADING It is my commitment to you to respond individually to the work you submit in this class and to return your work in a timely manner. Course grades will be determined by the completion of assignments as shown below: Assignment Frequency Points Each Total Points Percentage Homework % Paper % Presentation % Exams % Total % COURSE GRADING CRITERIA Letter Grade Percentage Grade Total Points A B C D F 0-59 <299 ASSIGNMENTS The graded assignments for this course will consist of four homework assignments, two writing assignments, a presentation, and two exams. Homework (100 points): Throughout the semester you will have 4 homework assignments. These assignments will focus on definitions, calculations, graphs, and concepts. These assignments are intended to give you additional practice working through problems and developing deeper understanding of economic approaches to environmental issues. (4 homework assignments x25 points = 100 total possible points) Paper (150 points): You will have two papers during the term that are expected to be about 3-5 pages long. The topic and detailed expectations will be provided in a separate document once assigned. The goal of these papers is to help you develop effective writing skills and also provide an opportunity for in-depth thought and analysis of how economics can be applied to real environmental issues. There will be more information Page 3

8 about this process provided later through Canvas. (2 papers x75 points = 150 possible points) Presentation (50 points): In the final week of class you will partner up with another student in class to give a 5-minute presentation the second writing assignment. These presentations will help you effectively communicate topics in environmental economics and will attempt to draw on other disciplines of interest to you. Additional information will be provided on Canvas. Exams (200 points): You will have 2 exams throughout the course, each counting for 100 points of your final grade. The format of the exams will be short answer and essay questions. Exams will not be cumulative, but the material covered largely builds on itself making it important to be familiar and comfortable with concepts from throughout the course. (2 exams x100 points = 200 points) There are no early or make up exams given with exceptions for University approved activities or documented illness or family emergencies. In case of documented illness, family emergency or university-excused absence, you may reschedule an exam within 3 days (+/ ) of the exam date. If you would like to challenge the validity of a test answer, and are not satisfied with the instructor s preliminary explanation, you may submit in writing the reason(s) a disallowed answer might be considered correct within one week of receiving that exam back. TOTAL COURSE TIME ESTIMATES Attend Class 40 hours Complete Readings 40 hours Complete Homework 20 hours Work on Papers 20 hours Preparing Presentations 10 hours Taking Exams 20 hours Total 150 hours Page 4

9 OTHER POLICIES Due Dates: It is your responsibility to turn in each assignment on the required date. All assignments turned in after the scheduled due date will be penalized 20% each day it is late. The only exception that MAY BE CONSIDERED is due to documented sickness, university excused function, e.g., FDIC attendance, or circumstances beyond the your control. The instructor reserves the sole right to determine what grounds constitutes a reasonable excuse for missing or submitting a late work assignment, the right to require submission of proper verification of such excuse. GT pathways writing requirement: At least 25 percent of the course grade must be based on written work that satisfies the following: At least one writing assignment must be an out-of-class piece of written work. In-class written work, such as on exams, must be in the form of essays. Expectations of written work include students demonstrating: The ability to convey a theme or argument clearly and coherently. The ability to analyze critically and to synthesize the work of others. The ability to acquire and apply information from appropriate sources, and reference sources appropriately. Competence in standard written English. Course Withdraws: If you wish to withdraw from the course you must submit a request directly to Division of Continuing Education. For complete information, please visit their website at Academic Integrity: This course will adhere to the CSU Academic Integrity Policies and Guiding Principles as found in the General Catalog and the Student Conduct Code. At a minimum, violations will result in a grading penalty in this course and a report to the Office of Conflict Resolution and Student Conduct Services. If you have any questions about what is permissible, please ask or visit CSU Honor Pledge: Academic integrity lies at the core of our common goal: to create an intellectually honest and rigorous community. Because academic integrity, and the personal and social integrity of which academic integrity is an integral part, is so central to our mission as students, teachers, scholars, and citizens, I will ask that you affirm the CSU Honor Pledge as part of completing your work in this course. While you will not be required to affirm the honor pledge, you will be asked to affirm the following statement at the start of your exams: I have not given, received, or used any unauthorized assistance. Canvas Technical Support: Page 5

10 Resources for Disabled Students Students with disabilities may be eligible for accommodations in accordance with Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act. It is the students responsibility to disclose any learning disabilities. Please con- tact the instructor if a special accommodation is required. To request accommodations, students should contact Resources for Disabled Students at (970) or go to Documentation of disability is required and the RDS office will assist in this process. Additional Support Services A variety of instructional support services, such as writing center, guidance on personal or educational issues, tutoring questions and library resources are available to the students. For more information about their services, visit their websites linked under additional resources on Canvas. IN-CLASS LEARNING ENVIRONMENT As an educator, it is my professional responsibility, and as a faculty member, it is a Colorado State University requirement that I control the conduct of this class to provide an environment in which all students can learn to the best of their ability. Therefore, I will not tolerate any form of disruptive or obstructive in-classroom behavior during the class meeting time by any enrolled students or other persons attending any class meetings. Therefore, please refrain during class from carrying on conversation while the instructor or any student, or invited guest, is speaking to the entire class. Also, if you must occasionally arrive to class late or leave early, please enter and leave in as non-disrupting manner as possible. It would be an expected courtesy to inform the instructor before class that you must leave early. If anyone enrolled in this class is bothered by any distracting behavior of the instructor or any student(s) to the extent that it is inhibiting your learning during scheduled class meetings, please let me know immediately. Also, if you are physically or otherwise learning disabled, please let me know how I may best accommodate you and help you achieve maximum possible learning in this course. Attendance is an expectation for all students. A positive relationship exists between class attendance and performance in this course. All of your assignments rely heavily on material and discussion covered in class as well as assigned chapters. Coming regularly to class will have a positive effect on your overall grade. Questions, comments, and active discussion are always encouraged and will make class sessions more interesting and exciting for all. If you are having problems with the course, please talk with me about those problems. The sooner you come for help, the better. I am very flexible with office hours and modes of communication. I want you to succeed as much as you do. Page 6

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