Economics of natural resources 1400-ZS-EZN-z
The lecture covers the following topics:
I. Economic and environment: Circular flow model. Materials balance model. Types of resources. Scope and causes of environmental damage. Worldwide environment objectives
II. Market economy: Market demand and market supply. Market equilibrium. Resource allocation at the market level and the firm level. Consumer and producer surplus. Cost and benefits analysis
III. Modelling market failure: Public goods. Allocative efficiency of market of public goods. Environmental externalities. Free rider problem. Tragedy of commons. Prisoner's dilemma
IV. Natural resources: Types of natural resources (non-exhaustible and exhaustible, renewable and non-renewable). Natural resources management. Hotelling's rule and prices of non-renewable natural resources. Hubbert (oil) peak theory. Factors of using renewable resources
V. Renewable energy sources (sunlight, wind, rain, tides, geothermal heat, biomass and biofuels)
VI. Concept of sustainable development: Conservation-based development. Definition of sustainability
VII. Environmental policy: Standards in environmental policy. General approaches of environmental policy
VIII. Policy instruments for environmental protection: Pollution charges. Subsidies. Deposit / refund systems. Pollution permit trading systems
IX. Allocation of recyclable resources: Factors mitigating resource scarcity. Markets for recycled materials
X. Environmental Impact Assessment (EIA): European Union Directive 2001/42/EC on Strategic Environmental Assessment (SEA). The Leopold matrix. Life Cycle Assessment (LCA) in the national economy. Environmental damage valuation
XI. Environmental protection in the global economy. Environmental impact indicators (GSI – World Bank's Genuine Savings Indicator; ISEW – Index of Sustainable Economic Welfare; GPI – Genuine Progress Indicator; Ecological Footprint and Carbon Footprint; LPI – Living Planet Index; TMR – Total Material Requirement)
XII. Global modelling: Introduction to systems dynamics modelling. Software package Vensim PLE. MIT's "The Limits to Growth". „World3” simulation model
The exercises cover the following topics:
I. Economy and environment – relations, challenges and problems
II. Environmental Impact Assessment (EIA) documentation
III. Sustainable development.
IV. Simulation models based on systems dynamics and software package Vensim PLE
Type of course
Prerequisites (description)
Learning outcomes
Upon the completion of the course, the student:
- explains relations between economic activities and environment, including externalities;
- characterises and differentiates natural resources important for the economy;
- identifies key environmental impact indicators;
- interprets outcomes of Environmental Impact Assessment (EIA),
- prepares a document of Strategic Environmental Assessment (SEA) compliant with European Union standards;
- interprets interdependencies in simulation model World3 and enriches model by additional variables;
- uses computer software Vensim PLE;
- evaluates economic decisions taking into account their consequences for the natural environment.
Assessment criteria
Lecture – final written exam.
Exercises – projects and assignments prepared individually or in teams, in class or at home.
Lecture – exam.
Exercises – graded assignments.
Bibliography
Recommended literature:
- Hackett, Stephen C. (2006). Environmental natural resources economics. 3rd ed. New York: M.S. Sharpe.
- Hanley, N., Shogren, J. F. and White, B. (1997). Environmental economics: In theory and practice. Basingstoke: Macmillan Press.
- Meadows, D., Randers, J., Meadows, D. (2006). Limits to Growth. The 30-Year Update. London: Earthscan.
- Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New York: Doubleday/Currency.
- Tietenberg, T. and Lewis L. (2015). Environmental and natural resources economics. Boston: Pearson Education.
Others:
- Resources at www.vensim.com related to Vensim PLE and systems dynamics
- Internet resources including factual and statistical data as well as environmental reports
- On-line resources, including electronic library available at http://buw.uw.edu.pl/
- Course materials available at www.wz.uw.edu.pl
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: