Course Description
Management of natural and environmental resources. Major theoretical concepts will provide a basis for examination of efficient production and consumption allocation decisions related to natural resources. Emphasis will center on economic, institutional, and legal aspects which prevent private markets from efficiently valuing resources.
Athena Title
Natural Resource Economics II
Prerequisite
AAEC 6580-6580L
Semester Course Offered
Offered spring
Grading System
A - F (Traditional)
Course Objectives
1. Students will understand how competitive markets allocate natural resources and other inputs to economic production and consumptive and be able to describe competitive equilibrium solutions graphically and mathematically. 2. Students will understand how competitive markets sometimes fail to operate efficiency and be able to describe common “market inefficiency” problems including externalities and public goods graphically and mathematically. 3. Students will understand and be able to apply theory and techniques for developing and implementing alternative solutions to problems related to the use, allocation and management of natural resources and the environment with emphasis on externalities, public goods, and different types of natural resource goods and services (e.g., nonrenewable, renewable).
Topical Outline
I. Natural Resources, The Environment and Economic Efficiency A. Pareto Efficiency Conditions B. Pareto Efficiency and Competitive Equilibrium C. Applications II. Natural Resources, The Environment and Market Inefficiency A. Market Inefficiency Caused By Public Good Characteristics B. Market Inefficiency Caused By Externalities C. Applications III. Public Good and Externality Solutions A. Public Good Provision Mechanisms B. Environmental Externality Solutions C. Applications IV. Natural Resource and Environmental Valuation A. Market Valuation Techniques B. Nonmarket Valuation Techniques C. Applications V. Optimal Natural Resource Management over Time and Space A. Nonrenewable Resources B. Renewable Resources C. Applications