City College of New York



SUS 7400C Economics of Sustainability

ECO B9526 Economics of Environment and Natural Resources

Spring 2017

|Instructor: |Jason C. Wong |Lecture: |Tuesday 5:00-7:40pm |

|Email: |jwong1@ccny.cuny.edu |Location: |Marshak 702 |

|Office Hours: |Tuesday by appointment |My Office: |Shepard 307B |

Bulletin Description (abridged):

Basic economic principles in the context of investigations of how consumer and producer choices affect the sustainability of economic development both regionally and globally. Theory of optimal allocation of resources and when markets fail to provide it. Inquiry into social institutions and government policies that correct market failures.

Microeconomics is used to study the incentives to protect the environment. Government’s possible and actual role in protecting the environment is explored. Are goals of economic development and sustainability at odds with one another? This course introduces students to the major theories and applications in environmental economics. Additional topics include sustainable development, ecological and resource economics, behavioral and development economics, and transportation.

Course Webpage:

All students should have access to CUNY Portal/Blackboard. Readings and assignments will be posted there.

Learning Outcomes: By the end of this course, students should:

• Be able to explain the key economic arguments for and against choices of policy instruments

• Be able to apply quantitative analysis to answer real-world environmental policy questions

• Be well-versed in the conceptual linkages between the environment, the micro- and macro- economy, and globalization

Course Textbooks: There are two required textbooks for this course. All other readings will be provided to you via Blackboard.

• Robert N. Stavins, Ed., Economics of the Environment, 6th. ed., WW Norton, 2012.

• Geoffrey Heal, Endangered Economies, Columbia University Press, 2016.

Purchase directly from publisher using coupon code: EMAIL for a 30% discount here:

Recommended References:

• David A. Anderson, Environmental Economics and Natural Resource Management, 4th ed., Routledge, 2013. (3rd ed. also acceptable)

• Herman E. Daly, Ecological Economics and Sustainable Development, Edward Elgar, 2007.

• Richard Heinberg and Daniel Lerch (eds.), The Post Carbon Reader, Watershed, 2010.

Grading Policy: You will be evaluated based on the following five course components. No extra credit will be provided.

1. 10% - In-Class Assignments and Participation

2. 20% - Group Project Presentation

3. 20% - Group Project Paper

4. 25% - Exam I, covering material up to and including March 7’s lecture

5. 25% - Exam II, cumulative

Important Dates:

Exam I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . March 14, 2016

Exam II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 16, 2017

Group Presentation . . . . . . . . . . . . . . . . . . April 18/25, 2017

Group Project Paper . . . . . . . . . . . . . . . . . . . . . May 26, 2017

Course Policies:

• You may appeal your grade to a graded component of the course up to one week after it has been returned to you. You must submit, in writing, a detailed explanation why you should have been awarded credit for your answers, along with your original work. The Instructor reserves the right to review the entire graded component and the outcome of your appeal could be either no change, grade increase, or grade decrease.

• You are strongly encouraged to take notes with pen and pencils. Use of electronic devices is permitted as long as the Internet functionality is turned off during class time. Some interactive components of the course may require laptop or Internet-enabled devices; the Instructor will inform you when you may use such devices.

• In general, no make-up exams will be held and no extensions will be provided. If you have religious observances during the scheduled grading events of this course, please let the Instructor know during the first week of class. In case of a medical or personal emergency you are asked to alert the Instructor as soon as conveniently possible and provide proof. Exceptions are provided on a case-by-case basis.

In-Class Assignments and Participation:

• Regular attendance is essential and expected. Since we meet weekly, missing one session would be equivalent to missing several lectures’ worth of content. You have one unexcused absence for the course; each subsequent absence will affect your participation grade.

• During each class, you will be asked to participate in in-class assignments, discussions, debates, and other activities. An example of an in-class assignment could be a two-minute paper on the reading that was due that day, or you may be asked to brainstorm and present debate arguments.

Group Project Presentation and Paper: At the beginning of the course, you will be discussing a variety of environmental problems that interest you. You are to use economic tools we learn in this course to analyze an environmental policy issue; groups will be formed or assigned based on mutual interest. Your work will culminate in the Group Presentation and the Group Paper (40% of your grade). In the final paper, you will refine your work based on comments received. Intermediate progress assignments may be given to help facilitate meaningful progress.

Academic Integrity: Please familiarize yourselves with the Academic Integrity Policy at CUNY. Plagiarism is the act of presenting another person’s ideas, research or writings as your own. The following are some examples of plagiarism:

• Copying another person’s actual words without the use of quotation marks and footnotes attributing the words to their source;

• Presenting another person’s ideas or theories in your own words without acknowledging the source;

• Using information that is not common knowledge without acknowledging the source;

• Failing to acknowledge collaborators on homework and laboratory assignments;

• Internet plagiarism includes submitting downloaded term papers or parts of term papers, paraphrasing or copying information from the internet without citing the source, and cutting and pasting from various sources without proper attribution.

A student who plagiarizes may incur academic and disciplinary penalties, including failing grades, suspensions, and expulsion. A complete copy of the CUNY Policy on Academic Integrity may be downloaded from the College’s home page.

Accomodations: The Office of Student Disability Services (SDS) is dedicated to providing students with disabilities equal access to the College curriculum. The Office ensures that, upon request, qualified students with disabilities are provided reasonable and effective accommodations, as mandated by law, as well as appropriate support services.

Students who contact SDS and indicate that they have a disability or believe that they might qualify for services will be asked to make an appointment for an intake interview with SDS staff. To qualify for services, students must register with SDS by providing appropriate documentation from a qualified professional describing the nature of their disability and functional limitations. Although academic adjustments are mandated by law, the College is not required to alter demonstrably essential academic requirements of a course of study nor is the College mandated to lower or effect substantial modifications of reasonable academic standards.

Early planning is essential for many of the resources, adjustments and accommodations; students are asked to contact SDS at the earliest possible date (NA 1/218; 212-650-5913 or 212-650-6910 for TTY/TTD).

Tentative Course Outline:

The weekly coverage might change as it depends on the progress of the class. However, you must keep up with the reading assignments, including articles posted online. The Anderson readings are optional but some students may find it a helpful supplement.

| | | |

|Session |Lecture Content |Readings |

| |Environmental Economics and Sustainability |Stavins Ch 1, 28 |

|1/31 |Science, History, and Environmental Policy |Daly Ch 1 |

| |Micro Crash Course |Anderson Ch 1-2 |

| |Market Failure and Externalities |Stavins Ch 2 |

| |Theory of Public Goods, Welfare Theorems |Heal Ch 1-2 |

|2/7 |Property Rights and Coase Theorem |Anderson Ch 3-4 |

| |Concept of abatement, equimarginal principle | |

|2/14 |Command and Control, Taxes, and Market Permits |Stavins Ch 6, 16-18, 32 |

| |Comparing Instruments, SO2 Markets | |

| |Climate Change: Science, Policy, Game Theory | |

|2/21 |Risk vs. Uncertainty |Stavins Ch 24-26 |

| |Discounting, Climate Change Economics |Stavins Ch 27 |

|2/28 |EU Emissions Trading Scheme |Heal Ch 3 |

| |In-class debate |Anderson Ch 5 |

| |Endangered Economies: Book Club | |

|3/7 |Project Introductions |Heal Ch 4-5 |

| |Exam Review | |

| | | |

|3/14 |Exam I | |

| |Revealed and Stated Preference |Stavins Ch 7-9 |

| |Travel cost and hedonic models |Primer Ch 4-5, |

|3/21 |Contingent Valuation debate |8-10 |

| |Tragedy of the commons and the oceans |Stavins Ch 30 |

|3/28 |Fisheries and international agreements |Heal Ch 6 |

| |Green and Competitive? |Stavins Ch 4-5, 31 |

|4/4 |Introduction to International Trade |Daly Ch 21-22 |

| |Environmental Kuznets Curve |Anderson Ch 9 |

| | | |

|4/11 |Spring Recess | |

| | | |

|4/18 |Presentations |Heal Ch 7 |

| | | |

|4/25 |Presentations |Heal Ch 8 |

| |Special Topics: Development & behavioral economics | |

|5/2 |Or: Transportation and Aviation Economics |Stavins Ch 3 |

| |Measurements of Well-being |Daly Ch 3, 6, 10 |

| |Ecological Economics |Heal Ch 9-10 |

|5/9 |Happiness Economics |Anderson Ch 8 |

| | | |

|5/16 |Exam II | |

Online and Supplementary Readings (subject to revision):

• Hardin, G. (1968). Tragedy of the Commons. Science, 162, 1243-1248.

• Pearce, D., Atkinson, G., Mourato, S. (2006). Cost-Benefit Analysis and the Environment: Recent Developments. OECD.

• Champ, P., Boyle, K., Brown, T. (2003). A Primer on Nonmarket Valuation. Springer.

• Carson, R. (2010). The Environmental Kuznets Curve: Seeking Empirical Regularity and Theoretical Structure. Review of Environmental Economics and Policy, 4(1), 323.

• Porter, M., van der Linde, C. (1995). Green and Competitive: Ending the Stalemate. Harvard Business Review.

• IPCC AR5 Synthesis Report - Summary for Policymakers



• Tol, R. (2009). The Economic Effects of Climate Change. Journal of Economic Perspectives

(23)2, 29-51.

• Daly, H. (2005). Economics in a Full World. Scientific American (Sept.), 100-107.

• Easterlin, R. (2004). The Economics of Happiness. Daedalus, 133(2), 26-33.

• Greenstone, M., Jack, K., (2015) Envirodevonomics: A Research Agenda for an Emerging Field. Journal of Economic Literature, 53(1), 542.

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SUS 7400C Economics of Sustainability (subject to updating/revision)

Spring 2017

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