AGEC 525: Natural Resource and Environmental Economics

Department of Agricultural Economics

Kansas State University

Fall 2018

Instructor: Gabriel S. Sampson

346 Waters Hall
gsampson@ksu.edu

Class time: Tuesday, Thursday 9:30 – 10:45 am

Location: Waters Hall 328

Office Hours: Monday 10:00-11:00 am, Tuesday 3:00-4:00 pm, and by appointment

Course Description: This is an advanced undergraduate course in natural resource and

environmental economics. The course has two focal areas. The first area is environmental
problems arising from the economy’s interaction with the environment and the study of
tools of economic analysis that can be used to provide potential solutions. The second area
introduces students to the economics of renewable and nonrenewable natural resources.

Objectives: The general purpose of this class is to provide you with an understanding of
prominent issues involving the environment and natural resource use in society. The
particular objectives of this class include (but are not limited to):

1. Discuss economic concepts used in the evaluation of environmental and natural

resource problems.
2. Develop the analytical skills needed to evaluate environmental and natural resource
problems.
3. Understand the market mechanism and relates to problems of environmental and
natural resource use.
4. Understand the role of property rights in environmental and natural resource
problems.

Grading:

Problem sets 30%

Term Paper 10%
Midterm 1 15%
Midterm 2 15%
Final exam 30%

Final Exam: Wednesday, December 12, 2:00 – 3:50 pm

The final exam is comprehensive. The exam must be taken at the scheduled time, as
specified by university policy.
Letter Grade Assignments: To guarantee a specific grade you need to obtain the
percentages outlined below:

90-100% A
80-89% B
70-70% C
60-69% D
0-59% F

Course Requirements: This course assumes that you have a good understanding of the
principles of microeconomic theory.

Exam Policy: This course is a lecture/discussion course. You are expected to attend all
lectures. There are three exams: midterm 1 (approximately 6th week), midterm 2
(approximately 12th week), and the final exam (December 12, 2:00 – 3:50 pm). There are no
exam re-takes.

Assignment Policy: There will be problem sets assigned throughout the semester. You will
have at least five days to complete the problem sets. The problems sets will consist of essay
questions, short computations, and excel exercises. All work must be turned in individually
and should reflect your own understanding. Problem sets are due at the beginning of class.
Late work is penalized 10% of the total assignment value for each day it is past due. Late
work will not be accepted beyond five days of the due date.

Term Paper: The purpose of the term paper is to have you apply concepts learned during
the semester to an issue centered around either the environment or natural resources. The
paper should be typed, 12-point font, double spaced, 1 inch margins, and no longer than 8
pages (excluding references, tables, figures). The paper will be due no later than the
beginning of class on December 6th. More details on the paper structure and logistics will be
provided later in the semester.

Required Materials: You should have access to a computer with Excel for assignments.

Optional Texts: There is no required text for this course. The Kolstad book and Keohane
and Olmstead contain some of the best coverage of environmental economics.

Kolstad, C.D. Environmental Economics, 2nd Edition, Oxford University Press

Keohane, N.O. and S.M. Olmstead. Markets and the Environment, 2nd Edition, Island Press

Prerequisites: AGEC 120 or ECON 120 or ECON 110 and junior status.

Academic Honesty
Kansas State University has an Honor System based on personal integrity, which is presumed
to be sufficient assurance that, in academic matters, one's work is performed honestly and
without unauthorized assistance. Undergraduate and graduate students, by registration,
acknowledge the jurisdiction of the Honor System. The policies and procedures of the Honor
System apply to all full and part-time students enrolled in undergraduate and graduate
courses on-campus, off-campus, and via distance learning. The honor system website can be
reached via the following URL: www.ksu.edu/honor. A component vital to the Honor System
is the inclusion of the Honor Pledge which applies to all assignments, examinations, or other
course work undertaken by students. The Honor Pledge is implied, whether or not it is
stated: "On my honor, as a student, I have neither given nor received unauthorized aid on
this academic work." A grade of XF can result from a breach of academic honesty. The F
indicates failure in the course; the X indicates the reason is an Honor Pledge violation.

Students with Disabilities

Any student with a disability who needs a classroom accommodation, access to technology
or other academic assistance in this course should contact Disability Support Services
(dss@k-state.edu) and/or the instructor. DSS serves students with a wide range of
disabilities including, but not limited to, physical disabilities, sensory impairments, learning
disabilities, attention deficit disorder, depression, and anxiety.

Statement Defining Expectations for Classroom Conduct

All student activities in the University, including this course, are governed by the Student
Judicial Conduct Code as outlined in the Student Governing Association By Laws, Article VI,
Section 3, number 2. Students who engage in behavior that disrupts the learning
environment may be asked to leave the class.

Course Outline1

I. Introduction and Background

a. Demand and consumption
b. Production and supply
c. Equilibrium concepts
d. Characteristics of environmental and natural resource issues

II. Environmental Economics

a. Markets
b. Market failures: public goods/bads and exernalities
c. Property rights, Coase Theorem
d. Environmental regulation

III. Natural Resource Economics

a. Introduction
b. Land
c. Water
d. Fisheries
e. Nonrenewable Resources
f. Forests
g. Sustainability

1 Subject to change based on student enrollment and interest.