Energy and Environmental Economics

 

Syllabus 

I. economics and the environment

Lecture 1

  1. Introduction

  2. Economics and the Environment

  3. Positive and Normative Economics

  4. Cost-Benefit Analysis

Class notes for Lecture 1

How economist see the environment by Don Fullerton and Robert Stavins


Lecture 2

  1. Marginal Benefits and Costs

  2. Present Value Calculations

  3. Total Benefits and Costs

  4. Net Benefits

  5. First Equimarginal Principle

Class notes for lecture 2


II. environmental demand

Lecture 3

  1. Present value of net benefits

  2. Example and applications of present value calculations

  3. Environmental demand

  4. Marginal willingness to pay for environmental goods

  5. Use, non-use and option value

Class notes for lecture 3


Lecture 4

  1. Non-use values

  2. Existence, altruistic and bequest values

  3. States and revealed preferences

  4. Contingent valuation

CLASS NOTES FOE LECTURE 4


Lecture 5

  1. Contingent valuation

  2. Example of contingent valuation

  3. Problems with contingent valuation

  4. Revealed preferences.

  5. Travel cost method, defensive expenditures and hedonic prices

CLASS NOTES Lecture 5


Lecture 6

  1. Defensive expenditures

  2. Example of defensive expenditures

  3. Hedonic prices

  4. Elasticity

  5. Examples of hedonic prices

CLASS NOTES Lecture 6


Lecture 7

  1. Risk and hedonic valuation

  2. Expected damages

  3. Valuation of a statistical life

Class notes Lecture 7


Lecture 8

  1. Problems with the value of a statistical liife

  2. Final remarks on hedonic valuation

Class notes Lecture 8


III. common goods and Externalities

Lecture 9

  1. Externalities

  2. Excludability and rivalry

  3. Types of goods

  4. Private, common, artificially scarce and public goods

CLAss notes Lecture 9

types of goods power point presentation


Lecture 10

  1. Tragedy of the commons

  2. Solution to common goods

  3. Negative externalities

  4. Pecuniary and technological externalities

Class notes Lecture 10


Lecture 11

  1. Social and private benefits

  2. Social and private costs

  3. Private marginal benefits and costs

  4. Social marginal benefits and costs

  5. Graphing externalities

Class notes Lecture 11

externalities presentation

Lecture 12

  1. Consumer net benefit

  2. Firms’ profits

  3. Victims

  4. Total welfare

  5. Social optimal level of the externality

  6. Private optimal level of the externality

  7. Welfare lost from the externality

  8. Solutions to externalities

  9. Taxes on externalities

class notes Lecture 12


Lecture 13

  1. Permits on externalities

  2. Free and sold permits

  3. Permits and welfare

  4. Scarcity rents

class notes Lecture 13  


Lecture 14

  1. Final remarks on permits

  2. Coase solution to externalities

  3. Pros and cons of Coase solutions.

  4. Uses of each instrument to fix externalities

class notes Lecture 14



IV. TOP issues IN ENVIRONMENTAL ECONOMICS   

Lecture 15

  1. Chlorofluorocarbons

  2. Ozone layer depletion

  3. Public policies toward chlorofluorocarbons

Class notes lecture 15

solution to externalities power point presentation


Lecture 16

  1. Final remarks on chlorofluorocarbons

  2. Sulphur dioxide

  3. Coal

  4. Acid rain

  5. Local pollutants

  6. Public policies toward acid rain

Class notes lecture 16

NASA’s Ozone Layer watch website

EPA’s acid rain program website

Epa’s acid rain SO2 permits (allowances) auction results

Evo Markets


Lecture 17

  1. Introduction to global warming

  2. Carbon dioxide

  3. Greenhouse effect

class notes Lecture 17

 

Lecture 18

  1. Carbon cycle

  2. Natural and anthropogenic emissions of carbon

  3. Natural and anthropogenic sinks of carbon

class notes Lecture 18


Lecture 19

  1. Demand and supply of energy in the U.S.

Energy outlook to 2040 report by ExxonMobil

Energy outlook website by ExxonMobil

U.S. Annual Energy Review

U.S. Annual Energy Review (selected slides)


Lecture 20

  1. Global warming evidence

  2. Costs of global warming

Class notes Lecture 20

EPA’s website about climate change

United Nations’ IPCC FAQs about global warming


Lecture 21

  1. Kyoto Protocol

  2. Problems with the Kyoto Protocol

Class notes Lecture 21

The role of Economics in Climate Change Policy by McKibbin and Wilcoxen



Lecture 22

  1. GDP, population and carbon emissions

  2. Kaya identity

  3. Additions to Kaya

  4. Kaya in deviation form

Class notes lecture 22


Lecture 23

  1. Global warming and uncertainty

  2. Dr. Wilcoxen’s uncertainty excercise

class notes Lecture 23


V. Other topics in environmental economics

Lecture 24

  1. Double dividend hypothesis

  2. Partial and general equilibrium analysis

Class notes LECTURE 24


Lecture 25

  1. Environment and development

  2. Normal and inferior goods

  3. Environmental Kuznets curve

Class notes LECTURE 25