Fall 2009 1 EC 133: Economics of Environmental Policy Department of Economics University of Vermont Instructor Donna Ramirez Harrington Office 233 Old Mill Bldg. Email [email protected] Office Hours 11:00-12:00 MW/ by appt Schedule MWF 1:55-2:45 pm Classroom L403 Lafayette Prereq EC 11 and EC 12, no exceptions Course Objectives The objective of the course is two-fold: (1) to introduce students to the basic principles of environmental economics and (2) to illustrate types and effectiveness of environmental regulations by providing timely examples of environmental issues and policies. Instruction and Learning Materials Textbook: (Required) Scott J. Callan and Janet M. Thomas, Environmental Economics and Management: Theory, Policy and Applications, 4th Edition, 2007 ISBN-10: 0324320671 ISBN-13: 9780324320671 Learning Tool: (Required) Scott J. Callan and Janet M. Thomas, Resources and Learning Tools in Environmental Economics, 4th Edition ISBN-10: 0324360150 | ISBN-13: 9780324360158 Blackboard The course will utilize Blackboard for extra instructional materials, announcements, and other pertinent information. You are expected to check Blackboard regularly. Extra readings which may be assigned may be distributed in class, may be made available at the Library or be made available in Blackboard. Approaches Lecture/Discussion We will have a mix of lectures, discussions, in-class exercises and some games. The very beginning of the semester will mostly be in lecture format. Case studies and group exercises later in the semester will open up the format to more participatory and interactive modes. Theory/Practice From the title of the course we will have both theory and practical applications. The first part will present the theory using standard economic concepts of supply, demand, markets, and efficiency. The second part will cover real-world examples of environmental problems and policies and regulations used to address them. Intuition/Graphs/Algebra/Essay In this course we will use and master a mix of techniques to analyze environmental issues using economic concepts. We will provide economic intuition, illustrate them graphically, and then solve simple algebraic problems.Fall 2009 2 Grading System 25% Midterm 1 In class, October 7, Wednesday 25% Midterm 2 In class, November 23, Monday 25% Final Exam (cumulative) L403 Lafayette, Dec 11, Friday, 11:45 A.M. - 2:45 P.M. 25% Assignments and In-class exercises TBA Tentative Course Outline and Prescribed Readings * I. Introduction a. Linking Economics and the Environment (Textbook Chapter 1) b. The Market Process (Textbook Chapter 2; Learning Tool Module 1) Demand, Supply and Equilibrium Consumer Surplus and Producer Surplus c. Market Failure (Textbook Chapter 3; Learning Tool Module 1) Public Goods Externalities Efficiency Property Rights II. Environmental Policy Approaches a. Command and Control (Textbook Chapter 4; Learning Tool Module 2) Ambient Standard Technology Standard Performance Standard b. Market-Based Instruments (Textbook Chapter 4; Learning Tool Module 2) Product Charge and Emissions Charge Subsidies Deposit-Refund System Pollution Permit Trading III. Analytical Tools (Textbook Chapters 6-9; Learning Tool Module 3) IV. Specific Pollution Problems For each topic below, we will discuss a. Overview of US legislation b. Economic analysis of US environmental regulation c. Benefit-cost analysis of the regulation Air (Textbook Chap10-13; Learning Tool Module 4) Water (Textbook Chap 14-16; Learning Tool Module 5) Solid Waste and Toxic Substances (Textbook Chap 17-19; Learning Tool Module 6) Global Environment (Textbook Chap 20-21; Learning Tool Module 7) * Depth and breadth of coverage would depend on how much time we have left Class Policies My class policies are consistent with UVM policies which can be found on the following websites: (The links will be on Blackboard) Classroom Code of Conduct Code of Student Rights and Responsibilities Code of Academic IntegrityFall 2009 3 My specific class policies are below: 1. Attendance I will not check attendance. Anything you miss is your responsibility. Whatever you miss when you are absent, come late, leave early, and register late is also your responsibility. Early departure for Fall Recess or Thanksgiving break is NOT considered an excused absence regardless of how early you have made your plans. See link on Classroom Code of Conduct above. Absences during due dates for assignments and exams are excused only for personal medical situations and family emergencies. University policy specifies that “In the event of illness requiring hospitalization or extended absence from classes because of a medical condition, with permission from the student, a designated member of the Primary Care/Women’s Health staff will notify the student's Dean's Office who will then be in touch with the student’s faculty.” Please make sure to contact the CAS Office of Student Affairs if you get hospitalized and miss and deadline and/or an exam. Disruptive students will be dealt with according to UVM policies. See link on Code of Student’s Rights and Responsibilities above. 2. Assignments and in-class exercises Assignments include take home assignments and in-class exercises. It is your responsibility to be aware of the due dates for all assignments which will be indicated on the assignment questionnaire. Dates for in class exercises will be announced in class. In-class exercises may be individual or group work. All take-home assignments are individual assignments. However, you are allowed to work with others. Make sure you do not copy anything verbatim from anyone. I will uphold UVM policies on academic integrity. See link on Code of Academic Integrity above. Take home assignments are to be submitted at the beginning of the class on the day they are due, unless otherwise noted. If you miss the deadline, your assignment score depends on whether your absence is excused or not. If it is unexcused, you will get a score of zero on that assignment. If you think you have an excused absence, I may or may not accept your late assignment and I reserve the right to request for proof and judge whether your absence is excused or not, and you may get a corresponding penalty on the score. I will drop ONE take home assignment or in class exercise with the lowest % score. This includes