ENR-30306 Theories and Models in

Course Outline 2013/2014
Environmental Economics and
Natural Resources Group
Hollandseweg 1
Theories and models in
environmental economics
6706 KN Wageningen
Course code:
Credits:
Examiners
Secretariat:
Period:
First meeting:
Room:
Contents:
ENR-30306
6
Xueqin Zhu
room 1105
Gré Schurink-Heitkönig
Wil den Hartog
Room 1117
Tel. 0317 – 484255
5
Monday 17 March, 2014, 8:30
C83
1. Introduction
2. Contents of the course and
Activities of the students
3. Organisation of the course
4. Examination
5. Literature
6. Detailed study scheme
1.
Introduction
How can computer models help scientists and policy makers in their analysis of the interactions
between economic activity and environmental pressure?
The course focuses on applied analysis of the relationship between economic activity and
environmental problems. Different methodologies of making environmental scenario studies are
discussed at an intermediate level. Methodologies that will be dealt with include linear
programming, partial equilibrium, input-output, computable general equilibrium and neo-classical
growth modelling.
Some of the major environmental problems, including climate change, cannot be analysed without
taking the international aspects into account. Therefore, the course will deal explicitly with the
economic theory on international trade and its relation with the environment.
This course provides students the analytical insights and skills to develop and critically evaluate
applied environmental-economic models and is an excellent preparation for the MSc-thesis.
The course is primarily meant for master students in Environmental Sciences, Management
Economics and Consumer Studies, and International Development Studies.
Prerequisite knowledge for participating the course includes some basic (micro-) economics and
some basic mathematics (calculus), which can be obtained from Environmental Economics for
Environmental Sciences (ENR-21306), or any other microeconomics courses. The course can be
directly followed by a thesis in Environmental Economics and Natural Resources (ENR-80418
through ENR-80439).
2.
Aims of the course and learning outcomes
The main aim of the course is to acquaint students with different methodologies of doing applied
research in the field of environmental economics.
After successful completion of this course, students are able to:

explain and assess empirical studies from international journals

analyse theoretical background of applied environmental economic optimisation models

construct and evaluate environmental economic models

design an applied environmental-economic model, appraise policy scenarios in GAMS, and
discuss the results in a scientific paper

and give a scientific oral presentation for the results of policy analysis.
3. Activities
An approximate division of activities is:
 lectures (10% of time: 16 hours)
 class discussions (5% of time: 8 hours, discussing a selection of articles)
 self-study (20% of time: 32 hours; incl. written exam and preparation of discussions)
1
 computer practicals (15% of time: 24 hours)
 supervised case study in groups with 2-6 students (50% of time: 80 hours; incl. solving the
model using GAMS, writing the paper)
The detailed schedule is provided on the last pages of this course outline.
4.
Examination
The grade for the course will be determined based on:
1. The case study, including the case study report, the presentation and the discussion (50%).
2. The written examination of the lectures and the discussion articles in the reader (50%).
3. Bonus point for the oral presentations of a discussion point and leading the discussion (1 point,
which will added to the written exam).
interim
assessment
task 1
interim
assessment
task 2
(final)
assessment
For the first two elements a pass (a grade of at least 5.5) is required for each to get a final grade.
Oral
presentations
(week 1-6)*
Written exam
(week 8)
15%
2. analyse theoretical background of applied environmental economic
optimisation models
Written exam
(week 8)
20%
3. construct and evaluate environmental economic models
Written exam
(week 8)
15%
Case study
report (week 7)
40%
Case
presentations
(week 7)
10%
intended learning outcomes
1. explain and assess empirical studies from international journals
4. design an environmental-economic model, appraise policy
scenarios in GAMS, and discuss the results in a scientific paper
5. give a scientific oral presentation for the results of policy
analysis
5.
Case study
(week 1-7)
Literature
The literature for this course consists of:

Reader “Theories and models in environmental economics” by Xueqin Zhu

Reader “GAMS for environmental-economic modelling” by Xueqin Zhu et. al.

Case study handouts
The readers are available at the WUR shop and you can buy them i before the course starts.
Handouts will be distributed during the first meeting.
See next pages for the course schedule.
2
6.
Detailed study scheme
Time
Subject
Literature
Lecturer
Room
Lecture 0: Introduction
TMEE reader
Zhu
C83
GAMS reader
Van Ierland; Yu
PC77
GAMS reader
Zhu; Yu
PC77
Week 28:
Monday 17 March
8.30 – 10.15
10.30 – 12.30 Practical: GAMS Learning exercises
Wednesday 19 March
8.30 – 12.15
Practical: GAMS Learning exercises
Thursday 20 March
8.30 – 9.15
Lecture I: Linear optimisation
TMEE reader
Zhu
C83
9.30 – 10.15
Discussion I: Linear optimisation
O’Ryan (1996)
Zhu
C83
GAMS reader
Van Ierland; Yu
PC77
Zhu
C83
GAMS reader
Van der Pol; Yu
PC77
Practical I: GAMS Learning exercises GAMS reader
Van der Pol; Yu
PC77
10.30 – 12.30 Practical: GAMS learning exercises
Week 29:
Monday 24 March
8.30 – 10.15
Lecture II: Partial equilibrium models TMEE reader
10.30 – 12.30 Practical: GAMS Learning exercises
Wednesday 26 March
8.30 – 12.15
Practical II: GAMS partial equilibrium
models
Thursday 27 March
8.30 – 9.15
Lecture III: Input-output models
TMEE reader
Van Ierland
C83
9.30 – 10.15
Discussion III: Input-output models
Resosudarmo
(2003)
Van Ierland
C83
GAMS reader
Van der Pol; Yu
PC77
10.30 – 12.30 Practical III: GAMS Input-output
model
Week 30:
Monday 31 March
8.30 – 9.15
Lecture IV: General equilibrium (GE)
models I
TMEE reader
Zhu
C83
9.30 – 10.15
Discussion IV: GE I
Gómez (2004)
Zhu
C83
GAMS reader
Van der Pol; Yu
PC77
Practical: GAMS backup (optional)
GAMS reader
Van der Pol; Yu
PC77
8.30 – 9.15
Lecture V: GE II
TMEE reader
Zhu
C83
9.30 – 10.15
Discussion V: GE II
Zhu & van Ierland Zhu
(2006)
C83
GAMS reader
PC77
10.30 – 12.30 Practical IV: GAMS GE I
Wednesday 2 April
8.30 – 12.15
Thursday 3 April
10.30 – 12.30 Practical V: GAMS GE II
3
Van der Pol; Yu
Time
Subject
Literature
Lecturer
Room
Practical: GAMS backup(optional)
GAMS reader
Van der Pol; Yu
PC77
8.30 – 9.15
Lecture VI: Neo-classical growth
TMEE reader
Van Ierland
C83
9.30 – 10.15
Discussion VI: Neo-classical growth
Nordhaus (1993); Van Ierland
Nordhaus & Yang
(1996)
C83
GAMS reader
PC77
Week 31:
Monday 7 April
No class
Wednesday 9 April
8.30 – 12.15
Thursday 10 April
10.30 – 12.30 Practical VI: GAMS growth
Van der Pol; Yu
Week 32:
No class
Week 33:
Monday 21 April (Easter)
No Class
Thursday 24 April
8.30
Hand in draft paper
C83
8.30 – 9. 15
Lecture: Wrapping up of the course
Zhu
C83
9.30 – 12.00
Practical backup (optional)
Van der Pol; Yu
PC77
Zhu et al.
TBD
Week 34:
Monday 28 April
10.30-12.30
Your papers
Case presentations
Week 35:
Friday 9 May
Hand in final paper (digital or hard
copy)
Written Exam: Thursday 8 May, 13:30-16:30 at C76.
Re-exam: Thursday 14 August, 8:30-13:30, C84
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