Fall 2011 1 EC 133: Economics of Environmental Policy Department of Economics, University of Vermont Donna Ramirez Harrington ([email protected]) COURSE SYLLABUS Class Hours 12:50 - 1:40 pm MWF Location 115 Harris Office Hours 11:00 am-12:00 pm W or by appointment Location 233 Old Mill Prereq EC 11 and EC 12, no exceptions Course Objectives The objective of the course is three-fold: (1) to introduce students to the basic principles of environmental economics and (2) to illustrate different types of environmental policy instruments and (3) to compare the effectiveness of different types of environmental regulations. Instruction and Learning Materials Textbook: (Required) Scott J. Callan and Janet M. Thomas, Environmental Economics and Management: Theory, Policy and Applications, 5th Edition, 2010; ISBN-10 1-4390-8063-1; ISBN-13 978-1-4390-8063-4 The ebook version (ISBN-10 1-111-16847-4; ISBN-13 978-1-111-16847-6) can be purchased from http://instructors.coursesmart.com/9781439080634?__professorview=false&__instructor=1703513 Blackboard The course will utilize Blackboard (Bb) 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 may be posted on Blackboard. Grading System 25% Exam 1 In class Sep 28, Wednesday 25% Exam 2 In class Oct 26, Wednesday 25% Exam 3 In class Dec 7, Wednesday 25% Assignments and In-class exercises TBA Important Dates Last day to withdraw Oct 31 M Thanksgiving Break Nov 21-25 M-F Last day of Ec 133 class Dec 7 WFall 2011 2 Tentative Course Outline I. Introduction and Economic Principles The concepts of demand, supply, equilibrium, efficiency and externalities should have been covered in Econ 12. I will revisit these concepts in this course, and emphasize their application to environmental policy. a) Linking Economics and the Environment (Chap 1) b) Demand, Supply and Market Equilibrium (Chap 2) c) Efficiency and Market Failure (Chap 3) II. Environmental Policy Approaches a) Economics of Policy Instrument Choice – Theory We will first cover the economic theory behind the use of the instruments before comparing them. I will provide actual examples of each type of policy instrument used in the US (and abroad) drawn from the chapters indicated in II(c). i. Command and Control (Chap 4) ii. Market-Based Instruments (Chap 5) iii. Contemporary Approaches (Materials on Bb) b) Analytical Tools to Assess Policy Instruments (selected sections Chap 6-9) c) Applications When we get to this section, we will revisit the same examples of instruments we talked about in II(a) as we talk about how each policy instrument have been applied to address various environmental issues in the US (and abroad) and how effective they have been. In assessing the instruments, we will use the economic principles in Section II(a) and II(b). i. Air (including ozone and greenhouse gases) (selected sections Chap10-13) ii. Water (selected sections Chap 14-16) iii. Solid Waste and Toxic Substances (selected sections Chap 17-19) iv. Global Environmental Issues (selected sections Chap 20-21) For each sub-section under II(c) we will cover: - Overview of US legislation on these issues - Economic analysis of US environmental regulation - Benefit-cost analysis of the regulation - Recent developments and news obtained mostly from New York Times /The Economist /NPRFall 2011 3 Class Policies My class policies are consistent with UVM policies which can be found on the following websites: Code of Student Rights and Responsibilities http://www.uvm.edu/~uvmppg/ppg/student/studentcode.pdf Code of Academic Integrity http://www.uvm.edu/~uvmppg/ppg/student/acadintegrity.pdf Specific class policies are below: 1. Assignments 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. 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 any assignment or exercise where you get a score of zero because your forgot to do it, or submitted late, or because you were absent. Once you get a zero on any assignment, that is it. There is no chance to make up for it. That zero score will be dropped, and all your other assignments, no matter how many zeroes there are, will count toward your grade. No exceptions. 2. 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. Policy for absences during exams are discussed below Disruptive students (those making noise, ostentatiously not paying attention, and leaving and reentering the classroom inappropriately) may be asked to leave the class. They are responsible for the materials they miss.Fall 2011 4 3. Exams There will be three one hour exams: W, September 28, W, October 26, and W, December 7. The first two exams are scheduled before the withdrawal date. All exams are non-cumulative. Excused Absences. Absences during any exam dates are excused only for personal medical situations and family emergencies. University policy specifies that “In the event of illness requiring hospitalization or extended