The debate on the scarcity of natural resources, the implications for economic development and growth and future scenarios includes very different currents of thought and visions. Specific skills are therefore needed to operate within the entrepreneurial and public contexts active in the sectors of the production of goods and the provision of services related to the exploitation, definition of the price and management of natural resources and the environment.
The course addresses the economic and environmental implications of natural resource management. The course covers conceptual and methodological topics and natural resource allocation problems. It introduces students to the principles, reasoning and techniques necessary to analyse the economic policy instruments related to natural resource management and sustainable use.
Students will acquire a solid understanding of the economic factors that influence the extraction, allocation and conservation of renewable (with particular reference to the case of marine and forest resources) and non-renewable (fossil fuels, mineral resources) resources, as well as an adequate study of the possible policies for efficient and sustainable management of these resources. Topics covered include resource scarcity, property rights, market failure, externalities, optimal extraction and conservation, and intervention politics.
Students will have to be able to critically process the information acquired according to interdisciplinary interpretations and acquire an autonomous ability to discuss and critically evaluate problems related to environmental exploitation and ecological transition and to evaluate policies related to their management. The aim of the course is to make students develop the ability to deal with the study of advanced textbooks, reports and materials related to environmental phenomena and policies produced by governments, environmental protection agencies and international organizations. The in-depth work in groups will offer an opportunity to experiment and consolidate forms of participatory and interactive learning and one's ability to work in groups.
Course Objectives:
• Understand the fundamental concepts and theories in natural resource economics.
• Analyze the economic drivers and impacts of natural resource extraction and use.
• Examine the role of market mechanisms and government interventions in resource management.
• Evaluate the sustainability of resource use and develop strategies for conservation.
• Apply economic models and tools to real-world resource management problems.
The course addresses the economic and environmental implications of natural resource management. The course covers conceptual and methodological topics and natural resource allocation problems. It introduces students to the principles, reasoning and techniques necessary to analyse the economic policy instruments related to natural resource management and sustainable use.
Students will acquire a solid understanding of the economic factors that influence the extraction, allocation and conservation of renewable (with particular reference to the case of marine and forest resources) and non-renewable (fossil fuels, mineral resources) resources, as well as an adequate study of the possible policies for efficient and sustainable management of these resources. Topics covered include resource scarcity, property rights, market failure, externalities, optimal extraction and conservation, and intervention politics.
Students will have to be able to critically process the information acquired according to interdisciplinary interpretations and acquire an autonomous ability to discuss and critically evaluate problems related to environmental exploitation and ecological transition and to evaluate policies related to their management. The aim of the course is to make students develop the ability to deal with the study of advanced textbooks, reports and materials related to environmental phenomena and policies produced by governments, environmental protection agencies and international organizations. The in-depth work in groups will offer an opportunity to experiment and consolidate forms of participatory and interactive learning and one's ability to work in groups.
Course Objectives:
• Understand the fundamental concepts and theories in natural resource economics.
• Analyze the economic drivers and impacts of natural resource extraction and use.
• Examine the role of market mechanisms and government interventions in resource management.
• Evaluate the sustainability of resource use and develop strategies for conservation.
• Apply economic models and tools to real-world resource management problems.
teacher profile teaching materials
• Definition, scope, and relevance of the economy of natural resources.
• Fundamental economic principles and tools applied to the management of natural resources.
• Intragenerational and intergenerational redistributive effects
Week 2: Scarcity and Resource Allocation
• The concept of scarcity and its implications for resource management.
• Strong and weak substitutability between physical and natural capital.
• Circular economy
Week 3: Optimal Extraction and Exploitation of Non-Renewable Resources
• Dynamic efficiency and intertemporal decisions in resource extraction.
• Hotelling's rule and the concept of optimal resource extraction.
• Economics of Climate Change and energy resources
Week 4: Renewable Resource Management
• The economy of renewable resources.
• Sustainable yield and optimal collection policies.
• Bioeconomic models and their applications.
Week 5: Market failure in the management of natural resources.
• Property rights regimes and their impact on resource use.
• Common resources and the tragedy of the commons.
• Externalities and their effects on resource extraction and conservation.
Week 6: Environmental Regulation and Resource Policies
• Government interventions and regulations in the management of resources.
• Design and implementation of market-based instruments (e.g., taxes, cap-and-trade).
• Cost-benefit analysis and evaluation of environmental policies.
Week 7: Economic Growth, Sustainable Development and Resource Use
• Natural resources "curse"
• International Trade and Resource Economics
Programme
Week 1: Introduction to Natural Resource Economics• Definition, scope, and relevance of the economy of natural resources.
• Fundamental economic principles and tools applied to the management of natural resources.
• Intragenerational and intergenerational redistributive effects
Week 2: Scarcity and Resource Allocation
• The concept of scarcity and its implications for resource management.
• Strong and weak substitutability between physical and natural capital.
• Circular economy
Week 3: Optimal Extraction and Exploitation of Non-Renewable Resources
• Dynamic efficiency and intertemporal decisions in resource extraction.
• Hotelling's rule and the concept of optimal resource extraction.
• Economics of Climate Change and energy resources
Week 4: Renewable Resource Management
• The economy of renewable resources.
• Sustainable yield and optimal collection policies.
• Bioeconomic models and their applications.
Week 5: Market failure in the management of natural resources.
• Property rights regimes and their impact on resource use.
• Common resources and the tragedy of the commons.
• Externalities and their effects on resource extraction and conservation.
Week 6: Environmental Regulation and Resource Policies
• Government interventions and regulations in the management of resources.
• Design and implementation of market-based instruments (e.g., taxes, cap-and-trade).
• Cost-benefit analysis and evaluation of environmental policies.
Week 7: Economic Growth, Sustainable Development and Resource Use
• Natural resources "curse"
• International Trade and Resource Economics
Core Documentation
M. Conrad, Resource Economics, 2nd Edition 2010, Cambridge University Press, Paperback ISBN: 9780521697675, Chapters: 1 – 3 – 4 – 5.Reference Bibliography
o Geoffrey Heal, THE ECONOMIC CASE FOR PROTECTING BIODIVERSITY, Working Paper 27963 (http://www.nber.org/papers/w27963) o Anthony J. Venables, “Using Natural Resources for Development: Why Has It Proven So Difficult?”, Journal of Economic Perspectives—Volume 30, Number 1—Winter 2016—Pages 161–184 (http://dx.doi.org/10.1257/jep.30.1.161 doi=10.1257/jep.30.1.161), o Jeffrey Krautkraemer and Michael Toman, “Fundamental Economics of Depletable Energy Supply”, November 2003 • Discussion Paper 03-01 (Fundamental Economics of Depletable Energy Supply (core.ac.uk) o International Bank for Reconstruction and Development / The World Bank, The Sunken Billions, (http://www.bu.edu/eci/files/2019/06/Microeconomics_and_the_Environment_Feb2019.pdf)Type of delivery of the course
Lecture slides and other teaching material will be downloadable from the course website. Students are expected to use personal PCs during the lectures.Attendance
In presenceType of evaluation
The final exam is oral. Attending students will make presentations during the course.