Environmental Economics
Econ. 527
Spring 2002 Denison
Office Hours: 12:00 – 3:00 M,W,F, Rm 339
Waters
e-mail: pwsa8zpg@hotmail.com
Course Description:
Environmental economics is a particularly timely and complex subject. We shall endeavor in this course to understand the assumptions and methodology that is used by different schools of economic thought in regards to the environment as well as how ecological systems interrelate with human behavior and each other. The first part of this course is devoted to understanding the relationship between human beings and their environment as it developed historically. From this empirical history, we shall introduce key concepts and determinants of analysis. We will begin with pre-capitalist soci-economic formations and analyze their respective impacts on nature. We will then take a brief foray into Thomas Robert Malthus’s work on population dynamics and sustainability.
When we arrive historically at the doorstep of capitalism we will engage in an intensive and rigorous study of classical (Smith, Ricardo, Marx), and Neo-classical (Arrow, Samuelson, et al) economics with particular attention to price theory and the derived theories of externalities and market failure. Attention will be paid to the enabling assumptions, logic and structure of these theories and their policy implications.
When the class has mastered these theories of price determination and market behavior we will test the theories in applying them to real world environmental case studies in order to judge their relative “robustness” of the analysis. We shall then cover topics such as benefit-cost analysis, sustainability, and environmental policy.
This class will focus on understanding theory and empirically testing theory through concrete applications and case studies. This semester I will be orienting the class to focus on the economics and ecology of chemical use, in particular the use of the herbicide Atrazine. We will read Rachel Carson’s book Silent Spring to introduce our first critical analysis of chemical use and begin our analysis of ecological systems.
It is an absolute necessity that students treat the subject
matter as complex and often contradictory and be prepared to think. This course also necessitates a substantial
time commitment by the student, as there is a large amount of reading and
writing involved in this class. There
will also be a Wednesday evening lab once a week (Wednesday evenings at
Academic Ethics:
Students must comply with the University’s code of ethics and academic behavior. You must do your own work. The papers that are assigned in this class are unique to each class and this semester. This should remove any temptation to “borrow” papers from previous classes.
Honesty: The
Faculty Senate and the Provost have requested that instructors notify
students of university "Plagiarism
and cheating are serious offenses and may be punishable by failure on the
exam, paper or project; failure in the course; and/or expulsion from the
University. K-State's
Honor System: Beginning this semester, K-State has instituted an
Undergraduate Honor "On
my honor, as a student, I have neither given nor received unauthorized aid
on this academic work" For
more information, please visit the Honor System web page at: http://www.ksu.edu/Honor
policy towards cheating:
For more information please refer to the ‘Academic dishonesty' policy in
KSU."
System based on personal integrity which is presumed to be sufficient
assurance that in academic
maters one's work is performed honestly and without unauthorized
assistance. Undergraduate students, by registration, acknowledge the
jurisdiction of the honor system. The following honor Pledge applies to all
assignments, examinations and course work undertaken by undergraduate
students and is implied, whether or not it is stated explicitly:
I also have a very interesting, if not freakish, ability to remember everything I read. Everything. Thus, if I find two papers that appear to be a bit too close in content and style, I will put them side-by-side and determine whether or not someone’s GPA is about to crash. Folks! You are here to learn this material, not to attempt to scam a grade. There is no substitute for hard work. If you are not prepared to do the work for this class you should not be in it.
Academic Accommodation:
If you have any condition, such as a physical or learning disability,
which will make it difficult for you to carry out the work as I have outlined
and will require academic accommodations, please notify me in the first two
weeks of the course.
Grading Policy:
There will be a minimum of FOUR papers that will account for 2/3 of your grade. The other 1/3 will be an exam on Price Theory and Externalities. There will be two labs, which will also be graded on par with the papers. I reserve the right to inflict punitive quizzes and other written assignments if I find that students are not keeping up with the assigned materials. It is imperative that you come to class prepared, or face the consequences of my wrath.
Attendance:
Attendance is mandatory and is taken at the beginning of
each class. If you miss more than five classes during the semester I will
reduce your grade proportional to the scale of the absences. If you absolutely have to be absent, arrange
with me ahead of time to excuse you.
Promptness is also an absolute necessity due to the size of the
class. You will be in your seat as the
second hand sweeps across the 12 on my watch at exactly
Classroom Ethics:
You will conduct yourself with consideration and respect. When I am speaking there will be no talking or other distractions. When I ask questions a raised hand is usually the best way to get my attention to proffer an answer. Be respectful of your fellow classmates and contribute to the collective success of the class. This class can be very enjoyable if you and your colleagues make it so.
Class Outline and Reading
Required Texts:
Eban S. Goodstein, Economics and the Environment. John Wiley & Sons, Inc. 3rd edition, 2002
Dollars & Sense, The Environment in Crisis, Second
edition, 1999
Rachel Carson, Silent Spring, Houghton Mifflin,
(any edition) 1962
Supplemental Texts:
There will be numerous
handouts throughout the semester and perhaps a few packets of materials, which
will be available at the copy center in the basement of Eisenhower.
Introduction: Why Environmental Economics?
[Jan.18th]
· Ecological & Economic Systems
· Why Now?
· Methodology of analysis, Where to Start?!
Setting up the Question: Methodology, History, and Theory
[Week of Jan. 22 – 25]
*Chapter #1 Goodstein
*D&S: Essay #1
*Introduction, preface and
Chapter 1 Silent Spring
· Modes of Production
· Means of Production
· Social relations of Production
· Technical composition of Production
· Pre-capitalist social formation
· Traditional societies - Hunter-gatherers
· Ancient societies
· Feudalism
· Capitalism - The Role of Science in Technology
· Private Property and Tort
The political economy and ecology of population
[Week of Jan 28th
– Feb. 1]
· *Handout: Malthus Population with forward by Ken Boulding
· *D & S: Essays: #2,Hotlzman, #3 Breslow, #4 Rees, #11 Chatterjee
· Chapters #3 & #21 Goodstein
· Malthus
o
Population dynamics
o
Moral control of population
o
Positive control of
population
o
Limits / sustainability
/gluts
· Ricardo
o
The corn laws
o
Capital and the
impossibility of gluts
[Week of Feb. 4 – 8]
* Handout: Betting the Planet
· Erlich / Simon debate
Ecological Systems
[Week of Feb. 11 – 22]
*Rachel Carson, Silent
Spring, Chapters (TBA)
· *Balance of the Planet – Lab – Chris Crawford
· *Case Study: Atrazine – hand-out
Classical & Neoclassical Price Theory
[Week of Feb. 25 –March 8]
*Handout: Shaking the
Invisible Hand, Tilly
*Goodstein
Chapter #3
D
& S: Essays; #9 & #21
· Price determination Classical
· Price determination Neoclassical
o
Assumptions of Neoclassical
Price Theory
· Externalities
· Market Failure
Environmental Ethics
[March 12 – 15]
*Chapters #2 & #3
Goodstein
· Property rights
· “Tragedy of the Commons”
· Tort
· Utilitarianism
Goodstein’s “Big 4” Standards
[March 25 – April 5] [April
8 – 12]
· The 4 Standards of environmental evaluation
· *Chpt.#4 Efficiency Standard
· *Chapter #5 Safety Standard
· *Chapter #6 Sustainability Standard – Neoclassical
· *Chapter #7 Sustainability Standard – Ecological
The Benefits of Environmental Protection
[April 15 – 19]
· *Chapter #8 Goodstein
· *Handout: Wrong Shade of Green – Miller & Reclaiming Economics –
Rosen (D&S)
Measuring the Cost of Environmental Protection
[April 17 – 24]
· *Chapter #9 Goodstein
· *D & S: #14 – Goodstein, #18 – Goodstein, #19 – Dougherty,
#23 Ackerman
Market Based Environmental Regulation
[April 29 – May 3]
*Chapters #16 – 17
D & S: Essays #21 –
Tokar, #22 – Scher
Case Study: The Political Economy of Fisheries
[May 6 – 10]
*Chapter #3 Goodstein
*Fish Banks