GSE809 Natural Resource Economics
About this Unit
Semester 2, 2008
Offered: D2 - Day; Second Half-Year (Block mode delivery; Unit is offered in alternate years)
Convenor: Professor Dodo J. Thampapillai
Prerequisite: GSE810 OR Economics degree
Credit Points: 4
The main aim of this unit is to introduce the participants to the economic analysis of natural resources at both the microeconomic and macroeconomic levels. The analysis involves the adaptation of standard frameworks in economics to the context of specific resources and leads to the formulation of resource management policies.
The microeconomic analysis will begin with the study of generalised models of resource scarcity. In essence this involves the adaptation of the market model to the context of resolving issues generated by renewable and non-renewable resources. This adaptation will then be extended to the case of individual resources such as forests, fisheries, minerals and soils. More detailed treatment of specific resources will be covered by way of student presentations. Please see the details of Assignment-1 below.
The macroeconomic analysis begins with a review of economic growth theories and economists' common perceptions of natural resource scarcity. The validity of this perception will be tested by recourse to a macroeconomic framework, which regards all natural resources as an aggregate item of capital. The class will be guided towards the formulation and application of this simple macroeconomic framework for the analysis of natural resource scarcity. Please see the details of Assignment-2 below. The assignment requires the course participants to critically discuss the model and its results. At the end of this module, the class participants will have gained familiarity with some basic concepts in the analysis of natural resource scarcity.
The final section of the course concerns the assembly of various natural resource management policies at the macroeconomic and microeconomic levels.
Teaching Staff
Convenor: Professor Dodo J. Thampapillai
Contactable by e-mail all the time and on campus during the week of block mode teaching [Phone (02) 9850-7984]
Classes
The classes will be delivered on block mode at Macquarie University. However a reading guide will be issued and web-based discussion forum will take place during the period leading up to the on-campus sessions. These will be held on:
Thursday, Friday, Saturday and Sunday 25 - 28 September 2008
Unit web page
Announcements and instructions will be posted on the university's on-line teaching facility which is administered by the Learning and Teaching Centre. You may access this facility after you have registered on the following website: http://learn.mq.edu.au/
Learning Outcomes
The course is intended to equip participants with introductory skills that would enable the analyses of environmental and economic policy issues.
In addition, the program is designed to enhance skills that specifically pertain to: Communication, Critical analysis, Problem-solving, Creative thinking, and team work.
Teaching and Learning Strategy
- Self study and preparation for on-campus sessions over a 6 week period
- The self study will be assisted by the provision of a reading guide and basic readings and the participation in a web-based discussion forum which will be moderated by the lecturer
- The on-campus sessions consist of 4 days. These sessions will deal with the material covered during self study in the format of lecture/seminar; discussions in break out groups and guided data analysis in computer labs
- The second half of block mode will deal data analyses that complement the appreciation of the conceptual premises covered in the first half. This includes completion of the group projects, seminar presentations, and a discussion forum to assemble national and global environmental policies
Course Topics
I. Introduction – Review of Introductory Concepts
- Review of introductory concepts
- The goals for Resource Management
II. Microeconomics of Natural Resource Management
- Management of pollution
- Management of Non-Renewable Resources
- Management of Renewable Resources
- Case studies of specific resources: Energy, Forestry, Fisherirs, Minerals and Soil
III. Macroeconomics of Natural Resource Managment
- Natural Resource Scarcity and Econoimc Growth
- A revised approach to the assessment of Natural Resource Scarcity
IV. Natural Resources Policy
- Towards a Policy Mix
Schedule of Lectures
| Date | Time | Topics |
|---|---|---|
| Thursday 25 September | 9.00 - 10.00 |
Basic Reading: Thampapillai (2002) Chapters 2-4 and 8 |
| 10.00 - 12.30 |
Basic Reading: Thampapillai (2002) Chapters 8-9 |
|
| 13.30 - 17.00 |
Basic Reading: Thampapillai (2002) Chapters 8-9 |
|
| Friday 26 September | 9.00 - 10.30 |
Basic Reading: Wallace (1992) |
| 10.30 - 12.30 |
Basic Reading: Wallace (1992) |
|
| 13.30 - 17.00 |
Basic Reading: Thampapillai (2002) Chapter 14 |
|
| Saturday 27 September | Completion of Computer Lab Session for Assignment 2 |
|
| Sunday 28 September | Class Presentations Policy Review |
Relationship between Assessment and Learning Outcomes
Grades in this course will be determined by an individual assignment, a group assignment, and contributions to two discussion forums. The distribution of grades is as follows.
| Assessment | Marks | Due |
|---|---|---|
| Assignment 1: Individual Assignment | 60% | Draft: 13 October 2008 Final: 27 October 2008 |
| Assignment 2: Group Assignment | 30% | 10 November 2008 |
| Discussion Forum | 10% |
Assignment 1: Individual Assignment (60%)
First Draft Due: 13 October 2008
Final Due: 27 October 2008
Assignment 1 is an independent research assignment assisted pre-reading before the on campus sessions and materials covered in class. These assignments are designed to promote critical thought and succinct communication. The assignment should not exceed 3000 words of text; and will be completed in two stages: The first draft on 13 October 2008 and the final draft on 27 October 2008.
Choose a specific natural resource and finalise a specific topic with reference to the management of the resource in consultation with the course convenor. You can commence the consultation process by e-mail soon after enrolment. Please use the following e-mail address: dthampap@gse.mq.edu au. But note that topic selection has to be finalized no later than 5:00 PM on 25 September 2008. You will be assisted with preparing a comprehensive reading list (say, by accessing a relevant data base such as Econ-Lit).
Prepare a comprehensive review paper on the topic you have chosen. Your paper must not exceed 2000 words and must be complete with references (references are not counted in the word limit). Ensure that your paper has an ordered format. For example, the paper may be structured around the following headings:
- Introduction - issues surrounding resource management
- Studies dealing with market arrangements for the resource
- Studies dealing with institutional arrangements
- Studies dealing with market as well as institutional arrangements
- Case-studies
- Policy Implications
Please use the above headings as a guide only.
In the first instance, each candidate must submit a draft of his/her work no later than Monday 13 October 2008. The final version of this review paper must be submitted no later 27 October 2008.
Assignment 2: Group Assignment (30%)
Due 10 November 2008
Assignment 2 is a data analysis on macroeconomics of natural resource scarcity. This assignment involves group work for data analysis. However, each candidate will submit an individual report no later than 10 November 2008. The purpose of this assignment is to foster analytic ability and team-spirit
Use the methodology outlined in Chapter 14 – [Thampapillai (2002)] titled "Scarcity Revisited" to estimate the following parameters for the country assigned to you:
The price of natural capital and its components;
Some relevant indices for scarcity
Some relevant indices for the efficiency of utilisation of environmental capital
(You will be provided with relevant country data)
Discuss your observations with reference to economists' standard perception of scarcity and critically evaluate the framework used for the analysis. Please observe a word limit of 1500 words
Some additional readings (which have further simplified and refined Chapter 14) will be posted on the Blackboard platform. Please note that the model formulation and analysis components of this assignment will be done as guided class exercise
Please do not be put off by the mathematics and the technical notation. This will be cleared up in class (27 September 2008 and this analysis has been structured on the premise that the class has no prior knowledge of macroeconomics and the applications of mathematics.
The deadline for submission would be strictly observed with the exception of unavoidable circumstances. You can submit your assignment electronically through the on-line facility. Nevertheless you need to also submit a hard copy via the ELS assignment collection centre.
You will be invited to contribute your views on the assigned topics to the discussion board on our on-line facility during August - September prior to the on-campus sessions. Your contributions will be compiled and then taken up for discussion during the on-campus sessions.
Attendance at the on-campus sessions and the completion of the assessment tasks are mandatory
Prior Reading and Discussion Forum
Materials for reading will be posted on a weekly basis from 04 August 2008 until 14 September 2008. Two discussion topics based on these reading will be posted during this period
- Course participants need to reflect and provided a considered view on the pertinent question/issue and post it to on the discussion forum. Please try and limit your contribution to 500 words
- You could also comment on the contributions made by your fellow course participants.
Contribution to this forum is mandatory.
Required and Recommended Texts/Materials
Dodo J Thampapillai (Lecturer and unit convenor) is presently working on a revised edition of his text. Environmental Economics: Concepts, Methods and Policies, Oxford University Press, Melbourne (2002, 2006) – The copyrights have reverted to Dodo and hence he will be posting relevant chapters of his current effort as notes on the Blackboard platform for GSE 809. The usual caveat on copyright requirements will apply to these notes. These notes will serve as the prescribed text.
Although some supplementary readings are given below, you are encouraged to broaden your reading by consulting relevant databases; especially ECONLIT. The library at Macquarie University has ECONLIT and also some other useful databases such as ENVIRONMENT ABSTRACTS.
Readings - General
Kula, E. (1998) Economics of natural resources, the environment and policies, Chapman and Hall, London; (Macquarie University Library Call Number: HC79.P55.K85/1994)
Cleveland, C. J., Stern, D. I. and Costanza. R. (2001), The Economics of Nature and the Nature of Economics, Edward Elgar, London. (Macquarie University Library Call Number HC79.E5.E2825/2000)
Delvin, R. A. and Grafton, Q. G. (1998) Economic rights and environmental wrongs: property rights for the common good, Edward Elgar, London (University of Sydney Library has one copy)
Australian and New Zealand Environment and Conservation Council, (2001) Review of the national strategy for the conservation of Australia's biological diversity, Environment Australia, Canberra – Electronic Copy Available through Library
Wallace, N. (1992) Natural resource management: an economic perspective, ABARE Canberra (Macquarie University Library Call No. HC603.5.N395).
McInerney, J. P. (1981) Natural resource economics: The basic analytical principles, Chapter 3 in Butlin, J. A. (ed) (1981) Economics and resources policy, Longman
Plagiarism
The University defines plagiarism in its rules: "Plagiarism involves using the work of another person and presenting it as one's own." Plagiarism is a serious breach of the University's rules and carries significant penalties. You must read the University's practices and procedures on plagiarism. These can be found in the Handbook of Postgraduate Studies or on the web at: http://www.student.mq.edu.au/plagiarism/
The policies and procedures explain what plagiarism is, how to avoid it, the procedures that will be taken in cases of suspected plagiarism, and the penalties if you are found guilty. Penalties may include a deduction of marks, failure in the unit, and/or referral to the University Discipline Committee.
The GSE recommends that students familiarise themselves with the information contained on the Georgetown University Honor Council website which discusses plagiarism in an easy to understand and comprehensive manner.
University Policy on Grading
Academic Senate has a set of guidelines on the distribution of grades across the range from fail to high distinction. Your final result will include one of these grades plus a standardised numerical grade (SNG).
On occasion your raw mark for a unit (i.e., the total of your marks for each assessment item) may not be the same as the SNG which you receive. Under the Senate guidelines, results may be scaled to ensure that there is a degree of comparability across the university, so that units with the same past performances of their students should achieve similar results.
It is important that you realise that the policy does not require that a minimum number of students are to be failed in any unit. In fact it does something like the opposite, in requiring examiners to explain their actions if more than 20% of students fail in a unit.
The process of scaling does not change the order of marks among students. A student who receives a higher raw mark than another will also receive a higher final scaled mark.
For an explanation of the policy see:
http://senate.mq.edu.au/rules/Guidelines2003.doc or
http://senate.mq.edu.au/rules/detailedguidelines.doc
Student Support Services
Macquarie University provides a range of Academic Student Support Services. Details of these services can be accessed at http://www.student.mq.edu.au.
Advice for Students with Disabilities/Health Conditions
The Equity Support Unit (ESU) provides support and assistance to students with a disability/health condition in aiming to ensure that they do not experience disadvantage in reaching their academic potential. Service provision is determined on a case-by-case basis following an assessment of a student's needs and the provision of supporting documentation. Service provision is also dependent on the availability of resources.
To register with ESU, download an Advice of Disability/Health Condition form from http://www.reg.mq.edu.au/academic-index.html. This form must be completed annually, irrespective of whether a disability/health condition is temporary, long-term or permanent. Students wishing to request support services from the ESU should make an appointment to see a Disability Advisor immediately after enrolling at Macquarie University.
Phone: (02) 9850 6494/7497
Fax: (02) 9850 6063
TTY: (02) 9850 6493
Email: equity@mq.edu.au
In person: Level 2, Lincoln Building (C8A), Macquarie University
Website: http://www.sss.mq.edu.au/equity