Welcome to ESM 204: The Economics of Environmental ManagementStaffCourse VitalsGradingReadings & PreparationPreparationCourse ApproachWhat will we cover?Section 1: Evaluating Projects and RegulationsSection 2: Measuring benefits and costsSection 3: Environmental RegulationSection 4: Managing renewable & non-renewable resourcesWelcome to ESM 204: The Economics of Environmental Management Purpose of the class: to help you solve environmental problems; i.e., to help you solve generic group projects.Our goal is to help you see the economic dimensions of environmental problems and use that information to generate solutions.StaffProf. Christopher Costello:4410 Bren Hall, 893-5802, costello@brenOffice Hours: Monday/Tuesday 8:30-9:30Marc Conte, TA:3424 Bren Hall, mconte@brenOffice Hours: Tuesday/Wednesday 2:00-3:00 PhD student in BrenPlan to attend office hours! We want to get to know you!Course VitalsPrerequisites: Calculus & ESM 251 or Econ 100AB20 lectures, Tuesday & Thursday, 11:00-12:151 discussion section per week, run by MarcYou should be familiar with Excel & SOLVERYou are expected to attend all lectures and 1 discussion per week.Workload: Above average. Expect 8-10 hours per week outside of class, on average.GradingHomework Assignments .. 40%5-6 “mini-group-projects”: may/should work with a partner, submit 1 copy with both namesLate assignments will not be acceptedMay not use the same partner twice (i.e., keep moving!).Work should be your own!. Do not share outside your team!Class/section participation .. 10%Midterm..20%Take Home – Distributed Feb 13, Due Feb 15Final Exam..30%March 22, 12:00-3:00, MSI buildingCheating/plagiarism will not be tolerated.Readings & PreparationReadings: available as a reader @ Grafikart Some also available on webSeveral books will be used a lotRecommended only though you may wish to buy•Hartwick and Olewiler: The Economics of Natural Resource Use, 2nd Edition (Addison-Wesley, 1998)•Boardman et al: Cost-Benefit Analysis, 2nd Ed (Prentice-Hall, 2001)•Kolstad: Environmental Economics (Oxford, 2000) Lower level book: GoodsteinPreparationPlease come to class prepared.Preparation: read the assignments listed for the day on the webpage.I will call on you in class. Please help make this an interactive experience.Questions??Course ApproachVERY hands-onEvery lecture designed to help solve a generic group project.Lecture StyleBegin with brief overview from last class + questions.Motivate new material.•I will always motivate material with a hypothetical group project•If I can’t think of a good use for the material in a real-world, group-project-like setting, you should not bother learning it.Cover new material; ask about readingsOpen discussion throughout.What will we cover?Course broken into 4 sections:1. Project Evaluation: Evaluating public environmental projects and regulations (5)2. Measuring benefits and costs (3)3. Environmental Regulation (6) 4. Managing renewable and non-renewable resources (5)Section 1: Evaluating Projects and Regulations1. Cost effectiveness vs. cost/benefit, public goods, externalities2. Applications: cost-effectiveness, cost-benefit, multi-objective methods3. Efficiency & surplus; doing benefit-cost analysis; equity vs. efficiency4. Inflation & discounting5. Risk & uncertaintySection 2: Measuring benefits and costs1. Costs of regulation and the “benefits transfer” approach; travel cost2. Revealed preference approaches3. Stated preference approaches; constructed markets; experiments.Section 3: Environmental Regulation1. Regulatory options and efficiency.2. Innovative approaches to regulation3. Incidence of environmental regulations.4. Spatial and temporal dimensions of environmental regulations.5. Monitoring and enforcement.6. Regulatory experience in developed vs. developing countries, green accounting.Section 4: Managing renewable & non-renewable resources1. Rent, water, and common property.2. Fishery economics.3. Managing the fishery.4. Forest economics & management.5. Non-renewable resources and