1. Basic Definitions: Chapter 22. Welfare Economics and Negative Externality:Detailed text online: chapter 3, chapter 4, chapter 5, and chapter 63. Public goodDetailed text online: Chapter 74. Technology adoptionDetailed text online: chapter 85. Valuation of environmental benefit6. Natural resource economics7. Climate changeDetailed text online: chapter 14, chapter 14A (Climate Change addendum)Discuss climate change and solve numerical problemPolicies to Delay and Dampen Climate Change8. Water economics9. Pesticides economicsDetailed text online: chapter 18PowerPoint presentation: lecture 18Discussion notesProblem Sets: HW610. Biodiversity, bio-tech and IPRDetailed text online: chapter 19PowerPoint presentation: lecture 1911. Environmental ServicesDetailed text online: chapter 20PowerPoint presentation: chapter 2012. Animal wasteOutline of Materials for Final Exam in EEP101/ECON125Spring 20031. Basic Definitions: Chapter 2You should be able to define:- Pareto optimal- Perfect competition- Competitive equilibrium- Main theory of welfare economics2. Welfare Economics and Negative Externality: Detailed text online: chapter 3, chapter 4, chapter 5, and chapter 6PowerPoint presentation: lecture 2, lecture 3, lecture 4 and lecture 5Problem Sets: HW1 and HW2Midterm: part 1Discussion notes(1) Social welfare=CS+PS+GR-TEC where GR is the net government revenue and TEC is the total social welfare(2) Equilibrium conditions: should be able to solve mathematically and graphically the equilibrium for each of the followings:- Social optimum (MSC=MSB)- Competitive (MPC=MPB)- Monopoly (MPC=MR)- Monopsony (MO=MB)- Middleman (MO=MR)(3) Solve for welfare distribution: once you find the equilibrium, you shall be able to solve for the welfare distribution (CS, PS, GR, TEC, and DWL) both mathematically and graphically under each of the different market conditions(4) Solve for optimal tax and standard and find welfare distribution (using equilibrium conditions)(5) Coase Theorem (definition, graphical and mathematical solution and welfare)(6) Choice of pollution taxes and standards(7) Weitzman model (intuition, graph, math, and main results)(8) Remedies for externality (Externality Tax, Output-reduction Subsidy, Standards, pollution trading, etc.)(9) Elasticity Effects on Magnitude of Externalities3. Public goodDetailed text online: Chapter 7Discussion notesProblem Sets: HW3 (part I)Midterm: Part 3(10) Definition of public good and pure public good (also congestion costs)(11) Homogeneous demand: solve for quantity provided, entry fee, and distribution of welfare under management by government, concessionaire, and monopolist.(12) Heterogeneous demand: solve for quantity provided, entry fee, and distribution of welfare under management by government, concessionaire, and monopolist.4. Technology adoptionDetailed text online: chapter 8Problem Sets: HW3 (part II)Midterm: part 2(13) Mathematically compute whether individuals would adopt a new technology. Using this framework, analyze how policies (i.e. affecting output price, input prices, pollution taxes, fixed adoption costs, research and development, etc.) would affect adoption.(14) S-curve: heterogeneity of individuals, or imitation5. Valuation of environmental benefit 1Detailed text online: chapter 9Movie shown at the last lectureDiscussion notes(1) Types of benefits: use and non-use benefits(2) Methodologies to measure benefits (discuss methodology, advantages, and disadvantages)- Hedonic pricing- Travel cost- Engineering cost method- Contingent valuation- Voting(3) Uncertainty, Expected Benefits, and Risk Aversion6. Natural resource economics Detailed text online: chapter 10, chapter 11, chapter 13 (1-6), and chapter 15 (1-4)Problem sets: HW4(15) Interest rate and NPV (net present value)(16) The Components of Interest Rates(17) Key Terms and Components of Dynamic Systems (growth function)(18) Understand resources economics using your knowledge of externality7. Climate change Detailed text online: chapter 14, chapter 14A (Climate Change addendum)Discussion notesProblem sets: HW5Discuss climate change and solve numerical problem- Externality problem (uncertainty, heterogeneous abatement costs, etc.)- Public goods problem (free riding)- Technology adoption problem- Renewable resources (absorption and emissions)- Valuation application(19) Discuss problem and potential effects of global warming and models of economic effects of climate change(20) The Impacts of Climate Change on Agriculture Policies to Delay and Dampen Climate Change (21) The Kyoto Protocol and obstacles to Kyoto Protocol and carbon trading(22) Mechanisms to obtain additional CO2 emissions by purchasing permits or providing CDMs 8. Water economics Detailed text online: chapter 16, chapter 16A, chapter 17, and chapter 17APowerPoint presentation: lecture 17Discussion notesProblem sets HW6(1) Describe the system of water rights in the U.S. and how it evolved(2) Transition from queuing to markets(3) Solve numerical problem of heterogeneous demand for water and effects of water trading market(4) Background knowledge of water problems (quantity, quality, common access, political disputes over property rights, etc.) and difficulties in policies applications(5) Irrigation as a technology adoption model application9. Pesticides economicsDetailed text online: chapter 18PowerPoint presentation: lecture 18Discussion notesProblem Sets: HW6(1) Overview and history of pesticide usage in US(2) Numerical application of pesticide decision2(3) Discuss externalities associated with pesticide usage, types of risks involved (groundwater, environmental amenity, consumers, farmers, etc.) and policies pursued to affect/regulate usage of pesticides(4) Pesticides in a Damage Control Framework(5) Pesticide Resistance10. Biodiversity, bio-tech and IPRDetailed text online: chapter 19PowerPoint presentation: lecture 19(1) Understand why biodiversity might be a public goods and an externality problem. Discuss how its benefits are distributed globally and the implication of this for its preservation(2) Discuss several alternative designs for encouraging biodiversity preservation. Focus on the difficulties of designing a compensation scheme for biodiversity owner in less developed countries. (3) Technology Transfer from the Public to the Private Sector (4) Why might there be “Orphan” diseases or crops and what policy interventions could be used to mitigate this type