AREC 569

Advanced Topics in Natural Resource and Environmental Economics

3 units

Winter 2026

Topics

Simulate the dynamics of fish stocks and how biomass reacts to different harvest policies
Solve dynamic models of optimal natural resource allocation
Solve simple stochastic dynamic programming models
Identify steady states and their stability properties
Derive optimal taxes in regulated natural resource markets
Understand the microeconomic theory of externalities
Formalize an economy, identify market failures, and develop regulatory frameworks
Derive the optimal carbon tax (Pigouvian tax)
Design optimal environmental regulation in a variety of settings
Design indexed policy instruments
Design second-best regulation
Choose best policy instruments under uncertainty

Jon Conrad. 2010. Resource Economics (second edition). Cambridge University Press (Conrad hereafter)
unspecified
Perman, R., Y. Ma, J. McGilvrays, and M. Common. 2003. Natural Resource and Environmental Economics (third edition). Pearson. (Perman et al. hereafter)
unspecified
Mas-Colell, A., M. Whinston, and J.R. Green. 1995. Microeconomic Theory. Oxford University Press. (MWG hereafter)
unspecified
Phaneuf, Daniel J. and Till Requate. 2017. A Course in Environmental Economics:
unspecified
Theory, Policy, and Practice. Cambridge University Press. (P&R hereafter)
unspecified

Winter 2018

Phaneuf, Daniel J. and Till Requate. 2017. A Course in Environmental Economics:
unspecified
Theory, Policy, and Practice. Cambridge University Press
unspecified
Hanley, N., Jason F. Shogren, and Ben White. 1997. Environmental Economics: In Theory and Practice. New York: Oxford University Press
unspecified
Baumol, William J. and Wallace Oates. 1988. The Theory of Environmental Policy. 2nd edition. Cambridge: Cambridge University Press
unspecified
Perman, R., Yue Ma, James McGilvray, and Michael Common. 2003. Natural Re- source and Environmental Economics. 3rd Edition. Harlow: Pearson Education Limi- ted
unspecified

Sources