Economics 324 - SEM: ECONOMICS/ENV/NATRL RESOU

Topics course. How do we expect competitive markets to allocate natural resources? Will market systems result in excess pollution? Can we improve market outcomes in relation to the environment and natural resources? If so, what are the relative strengths and weaknesses of different approaches? This course examines these issues through discussion of the economic theories of externalities, common property and public goods and their implications for the allocation of resources. We explore these questions by analyzing specific policy issues and debates related to the environment and resource use including: climate change, pollution, biodiversity, energy, sustainability, land use and fishing rights. Through this exploration, we touch upon a number of other theories and techniques including dynamic optimization and intertemporal choice, price vs quantity regulation, nonmarket valuation, cost-benefit analysis and the use of incentive-based regulation. Prerequisites: ECO 250 and ECO 220 or permission of the instructor.

Instructor Permission. Not open to first-years, sophomores