PP5227 Environmental Policy and Natural Resources Management
Instructor: Wu Xun
Course Description and Objective
This course introduces students to fundamental concepts, analytical methods and public policy options in managing environmental and natural resources. Some of the topics covered are: common causes of environmental and natural resource problems; policy instruments of environmental protection; economics and policies of natural resource extraction and depletion; and relationship between globalization and resource management.
Upon completion of the course, the students should be able to: 1) understand and articulate the most common causes of environmental and natural resource policy problems; 2) diagnose a given environmental or natural resource policy problem and understand the strengths and weaknesses of major policy options in dealing with the problem; and 3) understand the political economy of designing and implementing environmental and natural resource policies in a given political, economic and social environment.
Course Requirements and Grading
Participation in class discussion makes a significant contribution to the learning process. Students are expected to complete all reading assignments prior to each class meeting, and to be prepared to respond to questions and to engage in class discussion.
Three problem sets will be assigned, and each problem set will consist of quantitative questions and short essay questions. Students are required to submit reading responses for two of the eleven cases. Reading responses should be between 200 and 250 words. They must be posted on the course website by 4:00 pm of the day before the class.
The final exam will be open book.
The grade for the class will be determined as follows:
Problem sets 30%
Reading responses 20%
Class participation 10%
Final exam 40%
Tietenberg, Tom. Environmental and Natural Resource Economics, Seventh Edition. Reading, Massachusetts: Addison Wesley Longman, Inc., 2006. [ENRE]
Other required readings will be placed in the PPP resource room or posted in the class web page.
August 18, 2006
Lecture 1: Introduction
· Discussion of course content
· Environmental challenges for Asia
· Approach to Environment Issues
August 25, 2006
Lecture 2: Principles of Environmental and Natural Resource Policy
· Common causes of environmental problems
· Coase Theorem
· Decentralized policies
· ENRE, Chapter 4 – Property Rights, Externalities and Environmental Problems, pp. 62-86.
· Deforestation of the Northern Sierra Madre
· Reading Response: What might be the policy options for DENR to deal with deforestation of Northern Sierra Madre? Comment on effectiveness, fairness, political feasibility and enforceability of these options.
September 1, 2006
Lecture 3: Choice of Policy Instruments for Pollution Control
· Command-and-control approaches for environmental control
· Economic approaches to environmental policies
· Comparison of policy instruments
· ENRE, Chapter 15 – Economics of Pollution Control: Ann Overview, pp. 338-366.
· Field, Barry C., and Martha K. Field. Environmental Economics: An Introduction. McGraw-Hill, Inc., 2006.
Chapter 11 – Command-and-Control Strategies: The Case of Standards, pp. 211-231. Chapter 12 – Incentive-Based Strategies: Emission Taxes and Subsidies, pp. 233-254.
Chapter 13 – Incentive-Based Strategies: Transferable Discharge Permits, pp. 257-270.
September 8, 2006
(First Assignment due)
Lecture 4: Air Pollution and Public Policy
· Types of pollutants
· Policy options towards local air pollution
· Policy options for mobile-source pollution control
· ENRE, Chapter 16 – Stationary-Source Local Air Pollution, pp. 370-393.
· ENRE, Chapter 18 – Mobile-Source Air Pollution, pp. 422-444.
· Sayag, Philip, Success Conversion to Unleaded Gas in Thailand, World Bank Technical Paper No. 410, 1998.
· Success conversion to unleaded gas in Thailand
- Reading Response: What are the key factors contributing to the successful conversion to unleaded gasoline in Thailand?
September 15, 2006
Lecture 5: Management of Regional and Global Environmental Resources
· Introduction to regional pollutants
· Sulfur dioxide emissions trading in the US
· Global warming
· A Tradable Emission Permit Game for Global Climate Change
· ENRE, Chapter 17 – Regional and Global Air Pollutants: Acid Rain and Atmosphere Modification, pp. 395-419.
September 22, 2006
Lecture 6: Toxic Substances and Environmental Risk Management
· Policy approaches towards toxic substance pollution
· Risk Management
· ENRE, Chapter 20 – Toxic Substances, pp. 475-498.
· Viscusi, W. Kip, and Hamilton, James T. Are Risk Regulators Rational? Evidence from Hazardous Waste Cleanup Decisions, American Economic Review. September 1999. pp 1010-1027.
· Hanley, Nick, Shogren, Jason and Ben White. Introduction to Environmental Economics, Oxford University Press, 2001
Chapter 5: Environmental Risk
· Toxics Release Inventory: Sharing Government Information with the Public (KSG case)
· Reading Response: What social and political impacts might Toxics Release Inventory (TRI) have? How would you modify TRI to make it more effective?
September 29, 2006
Lecture 7: Introduction to Natural Resources Management
· A resource taxonomy
· Dynamic efficiency
· Resource scarcity and sustainable development
· Public policies for natural resources management
· ENRE, Chapter 5 – Sustainable Development: Defining the Concept, pp. 88-100.
· ENRE, Chapter 7 – The Allocation of Depletable and Renewable Resources: An Overview, pp. 128-145.
October 6, 2006
Lecture 8: Energy Economics and Policy
· Energy Demand and Supply
· Economic analysis of energy policy
· Electricity Sector Reform
· ENRE, Chapter 8 – Depletable, Non-recyclable Energy Resources, pp. 150-179.
· Wu, Xun and Priyambudi Sulistiyanto, “Independent Power Producer (IPP) in Indonesia and the Philippines (with)” in Howlett, M. and M. Ramesh (eds.), De-regulation and Its Discontents: Rewriting the Rules in Asia, Edward Elgar, 2006.
· NAPOCOR Privatization: Power in the Philippines (HBS case)
· Reading response: Do you approve of Delgado’s privatization and restructuring proposal in its broadest outlines (e.g., industry segmentation, privatization as opposed to state ownership or continued Independent Power Producers)?
October 13, 2006
Lecture 9: Management of Recyclable Resources
(Second Assignment due)
· Economics of recyclable resources
· Waste disposal and pollution damage
· Policy options for managing recyclable resources
· ENRE, Chapter 9 – Recyclable Resources: Minerals, Paper, Glass, Etc., pp. 181-203.
· Solving Seattle’s Solid Waste Crisis (KSG case)
· Reading Response: what options did Seattle have in dealing with solid waste crisis? How were these options related to each other? What are the pros and cons of these options?
October 20, 2006
Lecture 10: Management of Renewable Resources: Forests and Fisheries
· Deforestation in Asia
· Policies options for deforestation
· Biological and economic model of fisheries
· Policy options for management of fisheries
· ENRE, Chapter 12 – Storable, Renewable Resources: Forests, pp. 258-283.
· ENRE, Chapter 13 – Renewable Common-Property Resources: Fisheries and Other Species, pp. 286-311.
· Increasing the Social Value of B.C. Pacific Salmon Fishery
· Reading response: What option would you recommend to the Minister of Fisheries and Oceans? What information might be needed to strengthen your analysis?
October 27, 2006
Lecture 11: Water Resources Management
· Characterizing water scarcity
· Water pricing and water market
· Water Privatization
· ENRE, Chapter 10 – Replenishable but Depletable Resources: Water, pp. 206-230.
· The Hyderabad Metropolitan Water Supply and Sewage Board (KSG case)
· Reading Response: what should Gopal do to meet his Chief Minister’s goal to privatize the Board, and the World Bank’s requirement that any privatization effort contain provisions to improve services to the poor?
November 3, 2006
Lecture 12: Land Use and Agriculture
· Public policies and land use
· Agriculture and the environment
· ENRE, Chapter 11 – Reproducible Private Property Resources: Agriculture, pp. 233-256.
· Field, Barry C. Natural Resource Economics: An Introduction. McGraw-Hill, Inc., 2000.
Chapter 14 – Land Economics, pp. 265-292.
· Coffee vs. Cacao: A Case Study from the Vietnamese Central Highlands
· Reading response: Do you think that the current agricultural production and resource management system is sustainable in the long run (at local, national, or global levels)? If not, what are the key socioeconomic and environmental problems associated with the continued production of coffee in the Central Highlands of Vietnam, particularly in Dak Lak?
November 10, 2006
Lecture 13: Political economy of environmental and natural resource policy
· Introduction to political economy approaches
· Political economy of the selection of instruments for environmental policies
· Political economy of natural resource management in developing countries
· Hackett, Steven C. Environmental and Natural Resources Economics: Theory, Policy and the Sustainable Society, M.E. Sharpe, 1998. Chapter 7 – The Political Economy of Environmental Regulation and Resource Management, pp. 126-135.
· Keohane, Nathaniel O., Richard L. Revesz, and Robert N. Stavins, “The Choice of Regulatory Instruments in Environmental Policy,” Harvard Environmental Law Review, 22:313-367, 1998.
· Asher, Williams, “Understand Why Governments in Developing Countries Waste Natural Resources,” Environment, March, 2000.
· Deregulating fuel prices in the Philippines (HBS case)
· Reading response: If you had been advising President Ramos before the announcement of the price change, how would you recommend managing the situation?
November 17, 2006
(Third Assignment due)
Lecture 14: Globalization and Sustainable Development
· Development and the environment
· International trade and the environment
· Poverty and the environment
· The quest for sustainable development
· ENRE, Chapter 22 – Development, Poverty and the Environment, pp. 520-544.
· ENRE, Chapter 23 – The Quest for Sustainable Development, pp. 547-573.
· ENRE, Chapter 24 – Visions of Future Revisited, pp. 577-586.
· Financing Environmental Improvements in Slovakia (KSG case)
· Reading response: If Slovakia wants to pursue the revolving fund, how should it proceed?