School of Environment, Resources and Development, (SERD)  
 
Semester Offering: January
 
ED76.20 : Natural Resources Economics  2(2-0) [Elective course]
Course objectives:
The main objective of the course is to introduce the advanced economic concepts and tools used by economists to analyze natural resource problems and propose policies that foster efficient and sustainable use of natural resources.

 
Learning Outcomes:
On completion of the course, the students will be able to:
1.   Analyze economic policies using the concepts of economic efficiency, equity and sustainability
2.   Describe the different types of economic valuation techniques applied to natural resources
3.   Evaluate allocations of natural resources applied to important natural resources; water, forest and land, and propose different economic instruments to correct possible market failures
4.   Apply the principles of Cost-Benefit Analysis for the analysis of projects or policies
5.   Identify the relationship between natural resources and economics, well as the role and importance of environmental issues in economic development.

 
Pre-requisite(s):

ED76.19 Introduction to NRE (Course Code to be included once it is assigned by Registry upon approval. 

 
Course Outline:

I.       Value of natural resources and its use in policy-making
1.   Welfare Economics and Value in Economics
2.   Valuation techniques of non-market natural resources
3.   Cost-Benefit Analysis 

II.      Allocation of natural resources
1.   Static allocation of natural resources
2.   Allocation of non-renewable resources when time matters
3.   Allocation of renewable resources
4.   Allocation of natural resources when markets fail (including common pool resources)
III.     Application to specific natural resources problems
1.   Water
2.   Forestry
3.   Land

IV.    Economics of Externalities
1.   Optimal level of pollution and related policies
2.   Payment for Ecosystem Services

 
Laboratory Sessions:

None

 
Learning Resources:

Textbook:
1.   Tietenberg, T., Lewis, L., 2009. Environmental & Natural Resource Economics, 8th ed. Pearson - Addison Wesley, Boston.
2.   Daly, H.E., Farley, J., 2010. Ecological economics: principles and applications. Island Press, Washington D.C.

 
Reference Books:
1.   Hanley, N., Barbier, E.B., 2009. Pricing nature: Cost-benefit analysis and environmental policy. Edward Elgar Publishing.
2.   Griffin, R.C., 2006. Water resource economics: the analysis of scarcity, policies and projects. MIT Press Cambridge, Cambridge (USA).

 
Journals and Magazines:
1.   Ecological Economics, [Elsevier]
2.   Ecosystem Services, [Elsevier]

Others:
1.   Christie, M., 2012. Approaches to Valuing Ecosystem Services in Developing Countries Information pack for the Regional Workshop on “Mainstreaming Ecosystem Services Approaches into Development: Application of Economic Valuation for Designing Innovative Response Policies”, Bangkok.
2.   Christie, M., Fazey, I., Cooper, R., Hyde, T., Kenter, J.O., 2012. An evaluation of monetary and non-monetary techniques for assessing the importance of biodiversity and ecosystem services to people in countries with developing economies. Ecol. Econ. 83, 67-78.

 
Time Distribution and Study Load:
•       Lecture                                          : 30 hrs.
•       Presentation                                  :   4 hrs.
•       Self-study and assignments          : 50 hrs.

 
Teaching and Learning Methods:
Lectures in classroom, quizzes, individually assigned readings and presentation to other members for discussion, group work and presentation.

 
Evaluation Scheme:
Both the Mid-semester and Final exams are closed books and carry 30 and 40% weight respectively. The individual assignment carries 15%, and Group work and presentations carries 15% of the grade.

Grade “A” will be awarded if a student can demonstrate thorough knowledge and mastery of concepts and techniques and understanding of subject matter with high degree of skill to relate them with real world examples. Grade “B” will be awarded if a student can demonstrate good knowledge and mastery of concepts and understanding of subject matter with good skill of relating them with real work cases. Grade “C” will be given if a student can demonstrate some knowledge of the concepts and understanding but lacks skill of relating them with real world cases. Grade “D” will be given if a student has poor understanding of concepts and techniques with no or little skill to relate with real world cases. Grade “F” will be given if student demonstrates very poor and limited knowledge and understanding of concepts and lacks the skill to relate with real world cases.