1. Welcome to ESM 204: The Economics of Environmental Management If you hate economics and/or you don’t know what environmental economics is….this is the perfect course for you! Professor: Christopher Costello TA: Scott Lowe

2. Contact Information Costello: 4410 Bren Hall, 893-5802, costello@bren Office Hours: Tuesday 3:00-4:00 and by appt. Lowe: 3514 Bren Hall, 893-8633, slowe@bren Office Hours: First week by appt. Plan to attend office hours! Scott and I want to get to know you, your experience, your interests.

3. Course Vitals 20 lectures, Tuesday & Thursday 1 discussion section per week, run by Scott No discussion section first week. You are expected to attend all lectures and 1 discussion per week. Workload: Above average. Expect 8 hours per week outside of class.

4. Grading Homework Assignments 5 “mini-projects”, may work with a partner, submit 1 copy with both names….. 35%. Midterm Take-home exam distributed Feb 11, due Feb 18…15%. Final Exam Take-home (dist’d March 11, due March 19)….. 25% In-class (March 19, 12:00-3:00)….. 25% Cheating/plagiarism will not be tolerated!

5. Readings & Preparation Readings: most available on web, rest available in student lounge and on library reserve. (* = required) Please come to class prepared. I will too. I will call on you in class. Please help make this an interactive experience. Questions??

6. Lecture Style Begin with brief overview from last time, answer questions. Start new material. Ask students questions about readings. Open discussion throughout.

7. What will we cover? Course broken into 4 sections: 1. Evaluating public environmental projects (6) 2. Measuring benefits and costs (3) 3. Regulation (6) 4. Managing renewable and non-renewable resources (4)

8. Section 1: Evaluating public environmental projects 1.Cost effectiveness vs. cost/benefit, public goods, externalities 2.Efficiency & surplus 3.Inflation & discounting 4.Risk & uncertainty 5.Benefit cost analysis: applications 6.Social justice & environmental racism

9. Section 2: Measuring benefits and costs 1.Costs of regulation and the “benefits transfer” approach. 2.Revealed preference approaches 3.Stated preference approaches & constructed markets.

10. Section 3: Regulation 1.Regulatory options and efficiency. 2.Incidence of environmental regulations. 3.Spatial and temporal dimensions of environmental regulations. 4.Regulatory experience in developed vs. developing countries. 5.Monitoring & enforcement. 6.Macroeconomic issues: green accounting.

11. Section 4: Managing renewable & non-renewable resources 1.Rent, water, and common property. 2.Forest economics & management. 3.Fishery economics & management. 4.Non-renewable resources and energy.