EEP 101/econ 125 Environmental Economics David Zilberman 22 Warren Hall, Tuesdays & Thursdays, 9:30- 11:00 a.m. Class website Office Hours: Thurs., 3:30-5 p.m. 337 Giannini Hall.

G.S.I.'s: Anna Gueorguieva Yanhong Jin Aaron Swoboda

Textbooks (Optional) Tietenberg, Tom. Environmental and Natural Resource Economics. Fifth Edition, Reading, Massachusetts: Addison Wesley Longman, Inc., Hartwick, J., and N. Olewiler. The Economics of Natural Resource Use. New York: Harper & Row, Carlson, Gerald A., David Zilberman, and John A. Miranowski. Agricultural and Environmental Resource Economics. New York: Oxford University Press, Online class notes

Grading Option 1- no final paper –50% final, 30% midterm, and 20% homework. Option 2-with final paper –66.6% Grade of option 1, 33.3% Grade of paper Paper 15 pages Environmental economics topic Survey of literature, interviews, analysis. Examples Water markets in California, Policies to contain climate Economics of endangered species act

Outline Lecture 1: Introduction Lecture 2: When Is a Market Socially Optimal? Lectures 3-4: Production Externalities Lecture 5: Positive Externalities Lecture 6: Coase Theorem and Liability Roles Lecture 7: Externalities and the Selection of Policy Tools: Other Considerations Lectures 8-9Externalities and Technology Adoption Lecture 10: Environmental and Health Risks Lecture 11: Waste Management Lectures 12-13: Public Goods

Outline (continue) Lectures 14-15: Endangered Species, Targeting Lectures 16-17: Valuation of Environmental Benefits Lecture 18: Key elements of Dynamic Systems Lectures 19-20: Dynamic Aspects of Enviro Policies Lectures : Water Allocation and Quality Policies Lecture 24: Pesticide Economics Lecture 25: Biotechnology Lectures 26-27: International Environmental Issues Lecture 28: Environment and Development Lecture 29: Review

What is environmental economics How to use economics principle to manage better the environment and the economy Guiding principles Anthropocentric emphasis- human concern for and benefits from nature justifies policy intervention. Inter-disciplinary emphasis-Scientific knowledge become part of the input to the economic analysis Policy emphasis- market failures cause to pollution control and environmental conservation policies Issue orientation

Major issues and problems Pollution control-carrots sticks awareness guilt Valuation of environmental amenities Conservation policies and environmental protection Water air and soil protection Climate change Sustainability endangered species Risk management

Major issues and problems Pollution control-carrots sticks awareness guilt Valuation of environmental amenities Conservation policies and environmental protection Water air and soil protection Climate change Sustainability endangered species Risk management

The Major association of environmental economist is AERE Association of environmental and resource economics. Its journal is JEEE. Environmental economics is supported by EPA, USDA, Army core of engineers. Environmental economists are employed by the federal &state government, developers, environmental groups,lawyers,

The Society facilitates understanding between economists and ecologists and the integration of their thinking into a transdiscipline aimed at developing a sustainable world.

Agricultural economists emphasize research on environmental issues including water pesticides animal waste, soil erosion,ag biotech etc. Their association AAEA journal AJAE Agricultural economists emphasize research on environmental issues including water pesticides animal waste, soil erosion,ag biotech etc. Their association AAEA journal AJAE

Interdisciplinary Journals ScienceAmerican Academy of Science Nature Water Resources ResearchAmerican Geological Union Natural Resources Modeling Journal of Amer. Statistical Assoc.American Statistical Association Management ScienceManagement Science Society The Economist, Choices, Resources, Challenge, California Agriculture