The energy environment and resource field covers the economics of pollution, renewable and exhaustible resources with a focus on energy. The field covers both theory and empirics, with an emphasis on well identified studies of regulatory cost or benefit.
The first two courses in the field include the fundamentals of resource economics including the classic Hotelling problem, both theory and empirical; optimal control and dynamic programming in a resource context; Pigouvian prices, double dividends, and the Coase theorem; pollution control and enforcement; measuring the value of clean air and clean water; and measuring the costs of clean air and water; electricity supply and demand,the economics of energy and fuel efficiency, decision making under uncertainty and with anticipated learning; climate change policy; hyperbolic discounting; disentangling risk aversion and intertemporal substitutability. and a collection of topics in environmental policy design and implementation (with an emphasis on market-based emissions regulation). The field also includes a third course that presents a much more detailed view of the dynamic issues in resource economics including stock pollutants and climate change.
Student Career Paths
Reflecting the policy importance of the subject, the faculty is dedicated not only to academic pursuits, but also to policy and to governmental and non-governmental organizations. Similarly, some students prepare to pursue academic careers, while others prefer to work closer to policy makers and projects managers, finding employment in the private and non-profit sectors.
In the second year, students decide on a major field of study, taking at least two courses in the field and preparing for the field exam at the conclusion of the second year. The following are the graduate course offerings in the Energy, Environmental, and Resource Economics Field for the 2004-2005 academic year.
ARE 261: Environmental and Resource Economics
Theory of renewable and nonrenewable natural resource use, with applications to forests, fisheries, energy and climate change. Resources, growth and sustainability. Economic theory of environmental policy. Externality; the Coasian critique; tax incidence and anomalies; indirect taxes; the double dividend; environmental standards; environmental regulation; impact of uncertainty on taxes and standards; mechanism design; monitoring, penalties, and regulatory strategy; emissions markets.
ARE 262: Non-Market Valuation
The economic concept of value; historical evolution of market and non-market valuation; revealed preference methods; single site demand, multi-site demand, corner solution models, and valuation of quality changes; averting behavior; the hedonic method; contingent valuation; other stated preference methods: ranking, choice, conjoint analysis; the value of life and safety; sampling and questionnaire design for valuation surveys.
ARE 263: Dynamic Methods in Environmental and Resource Economics
This course prepares students to conduct research using dynamic analysis and optimization. It emphasizes methods, illustrating these using applications in environmental and resource economics. We introduce dynamic programming and the Euler equation, showing how to conduct comparative statics of a steady state. We discuss the use of dynamic modeling in the climate policy problem. We consider specific functional forms, for which closed form solutions are available, and emphasize numerical methods for problems that do not admit closed form solutions. We develop the dynamic analog of familiar static problems (e.g. “taxes versus quantities”). We discuss the role of risk and anticipated learning in dynamic models. Methods of phase portrait analysis are used to analyze two-dimensional differential systems. We study the necessary conditions for optimality in both deterministic and stochastic continuous time models. Decision making under the threat of catastrophic events (e.g. abrupt climate change) illustrates these methods. We show how non-convexities, such as those arising in the “shallow lake”, change the optimization problem. We consider dynamic games, e.g. where two or more agents harvest a stock, and the related problem arising under non-exponential discounting. We show how the disentanglement of risk aversion, intertemporal substitutability, and ambiguity aversion requires richer models.
This course is designed to help prepare graduate students to conduct empirical research in energy and environmental economics. This course has two broad objectives. The first is to develop an in depth understanding of specific empirical methods and research designs that are commonly used in the field of energy and environmental economics. The second is to familiarize students with the empirical literature that uses these methods to address important energy and environmental economics questions. Methods include experimental research designs, semi-parametric and parametric estimation of treatment effects, instrumental variables, discrete choice methods, and more structural estimation approaches. Applications include electricity supply/demand, the economics of energy efficiency, environmental policy design and implementation (with an emphasis on market¿based emissions regulation).
ARE 269: Seminar in Natural Resource and Environmental Economics.
Weekly presentations by students, faculty, and outside speakers on current research in the areas of environmental and natural resource economics.
Fields: Climate Change, Forecasting, Air Pollution and Development, Spatial Analysis.
Fields: The economy-wide costs and employment effects of natural resource policy and environmental regulation; forest and fishery economics and policy.
Fields: Environmental decisionmaking under uncertainty, optimal timing of climate change policy, potential impacts of global warming on agriculture and other sectors of the economy.
Fields: Energy, environmental regulation.
|J. Keith Gilless|
Fields: Economics of forestry, especially forest management planning, wildland fire protection, international trade in forest products, and regional economics.
Fields: non-market valuation, discrete choice modelling, water demand and pricing, water utility economics, uncertainty and irreversibility in environmental management, environmental policy, climate change.
Fields: Trade in carbon permits, trade liberalization and environment, nonrenewable resources models, taxes vs. quotas in global warming, agriculture and environment in China, fisheries, learning in pollution regulation.
|Gordon C. Rausser|
Fields: Environmental regulations, air quality, water quality, quantification of environmental externalities, biodiversity, stigmatized property values, collective decision-making and multilateral bargaining in water resource systems.
Fields: Development; Energy; Environment and climate change; Trade; Food and Agricultural Policy.
Fields: Distribution, growth, and resource sustainability; watershed and basin policy; race and resources.
|Leo K. Simon|
Fields: Multilateral negotiations over common property resource allocation, esp. water allocation; mechanism design and environmental regulation; comparing agri-environmental policy processes in the U.S. and Europe.
|David L. Sunding|
Fields: Water resources, pesticides, wetlands, pollution monitoring, nonuniform regulation.
Fields: Environmental Economics, Decision Theory, Intertemporal Welfare Analysis, climate change
Fields: Energy economics, environmental regulation in the energy sector.
Fields: Environmental policy, water, pest control, climate change, environmental risks and technologies.
Past Student Placements
|2012||Sarah Dobson||Assistant Professor||Department of Economics||University of Alberta|
|2012||Leslie Martin||Assistant Professor||Department of Economics||University of Melbourne|
|2012||Charles Seguin||Assistant Professor||Department of Economics||L'Université du Québec à Montréal|
|2012||Steven Sexton||Assistant Professor||Department of Agricultural Economics||NC State|
|2011||Damian Bickett||Assistant Professor||Williamette University|
|2011||Howard Chong||Assistant Professor||School of Hotel Admin||Cornell University|
|2011||Alan Fuchs||Research Economist||Human Development Report Office||UNDP|
|2011||Brian Gross||Assistant Professor||Humboldt State University|
|2011||Santiago Guerrero||Researcher||Central Bank of Mexico|
|2011||Koichiro Ito||Assistant Professor||School of Business||Boston University|
|2011||Biswo Poudel||Visiting Scholar||Agriculture and Resource Economics||UC Berkeley|
|2010||Jenny Liu||Assistant Professor||Department of Economics||Portland State University|
|2009||Zhen Lei||Assistant Professor||Department of Energy and Mineral Engineering||Pennsylvania State University|
|2009||Jesse Tack||Assistant Professor||Department of Agricultural Economics||Mississippi State University|
|2008||Ryan Kellogg||Assistant Professor||Department of Economics||University of Michigan|
|2008||James Manley||Assistant Professor||Department of Economics||Towson University|
|2008||Hugo Salgado||Assistant Professor||Economics Department||Universidad de Concepcion, Chile|
|2008||Susan Stratton||Assistant Professor||Department of Economics||Smith College|
|2007||Ralf Steinhauser||Research Fellow||Economics Program||Australian National University|
|2007||Hendrik Wolff||Assistant Professor||Department of Economics||University of Washington|
|2006||Meredith Fowlie||Assistant Professor||Ford School of Public Policy/Economics||University of Michigan|
|2006||James Hilger||Economist||Bureau of Economics/Consumer Protection Division||Federal Trade Commission|
|2005||Karina Schoengold||Assistant Professor||School of Natural Resources/Agricultural Economics||University of Nebraska, Lincoln|
|2005||Jason Scorse||Assistant Professor||International Policy Studies||Monterey Institute of International Studies|
|2004||Yanhong Jin||Assistant Professor||Agricultural Economics||Texas A&M University|
|2003||Nick Brozovic||Assistant Professor||Agricultural & Consumer Economics||University of Illinois, Urbana Champaign|
|2003||Wolfram Schlenker||Assistant Professor||School of International & Public Affairs||Columbia University|