COURSE SYLLABUS

Fall 2014
EC 133: Economics of Environmental Policy
Department of Economics, University of Vermont
Donna Ramirez Harrington
([email protected])
COURSE SYLLABUS
Class Hours 3:00 - 3:50 MWF
Office Hours 11:30-12:30 W or by appointment
Prerequisites EC 11 and EC 12, no exceptions
Location
Location
110 Jeffords
233 Old Mill
Course Objectives
At the conclusion of the course, students should be able to examine environmental policy issues from an
economic perspective. To achieve this, the course has the following specific goals:
(1) To apply the basic concepts of demand, supply, market equilibrium, perfectly competitive
markets, allocative efficiency, profit maximization and welfare to describe environment-economy
interactions.
(2) To explain and differentiate among the theories of public goods, externalities and property rights
and explain market failures arising from environmental problems by applying these three theories
to current environmental policy topics.
(3) To describe and apply the fundamentals of cost-benefit analysis as applied to environmental
decision-making
(4) To identify and differentiate between different types of Command and Control Instruments
(CACs) and Market-Based Instruments (MBIs) and contemporary approaches to environmental
policy and examine how they are implemented in the US and in other countries to address
environmental issues fare in achieving allocative efficiency and cost effectiveness
(5) To relate economic growth and trade relate with environmental goals and describe how climate
change is a transboundary pollution problem that requires international efforts and agreements
Instruction and Learning Materials
Required Textbook
We will be using almost all chapters of this book. You need your own copy.
Scott J. Callan and Janet M. Thomas, (CT) Environmental Economics and Management:
Theory, Policy and Applications, 6th Edition. ISBN 13: 978-1-111-82667-3; ISBN 10: 1-11182667-6.
 Note that the pages I will be indicating in the lectures are from the 6th ed. I require the 6th ed
to avoid any confusion regarding the content.
 There is an electronic copy of this book:
http://www.cengage.com/search/productOverview.do?Ntt=148843350717133266020770306
72711927512&N=16+4294904682+45&Ntk=P_EPI
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Fall 2014
Extra Chapter
We will be using one chapter from this book. The relevant chapter will be posted on Bb, no need to buy
this book
Thomas Pugel, International Economics, ISBN-13:9780073375755; ISBN-10: 0073375756,
Chapter 13
Extra Reading
Thomas A. Barthold “Issues in the Design of Environmental Excise Taxes” The Journal of
Economic Perspectives, Vol. 8, No. 1 (Winter, 1994), pp. 133-151(on Bb)
Blackboard
The course will utilize Blackboard (Bb) for additional instructional materials, announcements, links to
news articles and other related information. You are expected to check Blackboard regularly. Extra
readings which may be assigned may also be distributed in class.
Grading System
25%
25%
29%
14%
5%
2%
Exam 1
Exam 2
Exam 3
Assignments
In-class exercises
Academic Integrity Quiz
In class
In class
110 Jeffords, 13:30-15:30
Take-home
In class
Online
F, Sep 26
F, Oct 31
F, Dec 12
TBA
TBA
F, Aug 29, 11:59 pm
The final exam is not cumulative; but the concepts and tools you need to answer the questions are related
to topics covered before the 2nd exam.
Letter Grades
88-100
78-87
68-77
60-67
<60
A-/A
B-/B/B+
C-/C/C+
D-/D/D+
F
Important Dates
Last day to add without instructor permission
Last day to add/drop, audit, pass/fail
Last day to withdraw
Thanksgiving recess
Last day of EC 133 class
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Aug 29, F
Sep 8, M
Oct 27, M
Nov 24-28, M-F
Dec 3, W
Fall 2014
REVISED Tentative Course Outline
I.
Introduction and Economic Principles
a)
b)
II.
(Chap 1)
(Chap 2)
Efficiency and Market Failure
a)
b)
c)
III.
Economics and the Environment
Demand, Supply and Equilibrium
Aug 25-27
Aug 27-Aug 29
(Chap 3)
Public Goods
Externalities
Property Rights and Transaction Costs
Sep 3-5
Sep 8-10
Sep 12-15
Cost-Benefit Analysis
a)
b)
c)
Assessment of Benefits
Assessment of Costs
Cost-Benefit Analysis
(Chap 7)
(Chap 8)
(Chap 9)
Sep 17
Sep 19
Sep 22-24
EXAM 1: 26 SEPTEMBER, FRIDAY
IV.
Environmental Policy Approaches
A. Command and Control (CAC)
a. Theory
b. Examples/Applications/Analysis
Sep 29-Oct 10
(Chap 4)
(Ch 10-19), selected sections, see next page
B. Market-Based Instruments (MBI)
a. Theory
b. Examples/Applications/Analysis
(Chap 5, Barthold)
(Ch 10-19), selected sections, see next page

Taxes
Oct 13-24
EXAM 2: 31 OCTOBER, FRIDAY


Tradable permits
Abatement subsidies and Deposit-refund schemes
C. Contemporary Approaches
a. Theory
b. Examples/Applications/Analysis
V.
Oct 27-Nov 7
Nov 10-12
Nov 14-17
(Materials on Bb)
(Materials on Bb)
Special Topics: Environment, Development
Trade and Sustainability
(Chap20-21; Pugel)
EXAM 3: 12 DECEMBER, FRIDAY
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Nov 19 - Dec 3
Fall 2014
Detailed Reading List for Chapters 10-19
Selected Sections from Chapters 10-21 for CAC: (Callan and Thomas 6th ed)
o
o
o
Description of different types of CAC:
o Chapter 10: 212-214
o Chapter 11: 242-245
o Chapter 12: 263-266
o Chapter 14: 337-341
o Chapter 15: 352-254
o Chapter 16: 383-387
Applications and Analysis of different types of CAC using Allocative Efficiency as Criteria:
o Clean Air Act (221-227)
o Clean Water Act (341-349)
o NAAQS (227-230)
o Mobile source controls (246-253)
o Water quality standards (337-343; 354-355)
Applications and Analysis of different types of CAC using Cost-Effectiveness as Criteria:
o Air pollution: Technology-based standards for stationary sources (Chapter 12)
 Background: 263-266
 Analysis: 273-277
o Water pollution: Point sources (Chapter 15)
 Background: 352-354
 Analysis: 354-355
Selected Sections from Chapters 10-21 for MBI: (Callan and Thomas 6th ed)
o
o
Examples of Product Charges
o Global air quality: tax on ozone depleting chemicals
 Background: 288-295
 Assessment: 295-299
o Municipal solid waste: different pricing schemes
 Background: 430-440
 Assessment: 440-449
o Non-point source water pollution: tax on fertilizers: 366-267
o Pesticide and toxic chemicals: product charge in chemicals
 Background: 456-468
Examples of Emission/Effluent Fees
o Emission fees for air pollutants
 See USEPA document for US examples:
 Air Emission Fees in Maine for sulfur oxides (SOx), NOx, VOCs
 The South Coast Air Quality Management District (SCAQMD) in Southern
California)
o Effluent fees on point sources of water pollutants
 Background: 352-363
 Assessment: 363-366
 Other examples: See USEPA document for US examples
o In the news: carbon tax
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Fall 2014
Class Policies
UVM policies
I will uphold all UVM policies which can be found on the following websites:
Policy on Disability Certification and Support—Students
http://www.uvm.edu/~uvmppg/ppg/student/disability.pdf
Religious holiday policy statement
Students have the right to practice the religion of their choice. Check the course schedule and
deadlines to see if you need to miss class to observe a religious holiday. Please submit the dates
of your absence to me by email within the first 3 days of the course. You will be permitted to
make up missed work within a mutually agreed-upon time.
Student responsibilities and rights:
o
Code of Academic Integrity
This policy addresses plagiarism, fabrication, collusion, and cheating.
http://www.uvm.edu/~uvmppg/ppg/student/acadintegrity.pdf]
Offenses against the Code of Academic Integrity are deemed serious and insult the integrity
of the entire academic community. Any suspected violations of the Code are taken very
seriously and will be forwarded to the Center for Student Ethics & Standards for further
intervention
o
Grading policies
For information on grading and GPA calculation, go to
http://www.uvm.edu/academics/catalogue and click on "Policies and General Information"
for an A-Z listing, and select "G" for grading.
o
Policy on Grade Appeals
http://www.uvm.edu/~uvmppg/ppg/student/gradeappeals.pdf
o
Policy on FERPA Rights Disclosure
The purpose of this policy is to communicate the rights of students regarding access to, and
privacy of their student educational records as provided for in the Family Educational Rights
and Privacy Act (FERPA) of 1974.
http://www.uvm.edu/~uvmppg/ppg/student/ferpa.pdf
Specific class policies are below:
1.
Academic Integrity Quiz
This is an easy give-away quiz that is worth 2% of your grade. As long as you complete it on
time, you get 100%. This serves two functions:
o
o
To indicate to me that you have read and have agreed to abide by the academic integrity
policies of UVM. Materials needed to answer the quiz is on a folder labeled “Academic
Integrity” under the Course Materials section in Bb
To familiarize yourself with the Bb interface for answering multiple choice online
quizzes (see (2) below). Detailed instructions are in last page of syllabus.
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Fall 2014
2.
Assignments
There are two types of assignments: written and online. They are both individual assignments
Together, they are worth 14% of your grade. Deadlines will be announced in class and with some
delay, on Bb. So make sure you check you check the Bb announcement page regularly. It is your
responsibility to be aware of all due dates; failure to come to class or to check Bb is not an excuse
to miss the homework.
Written assignments are individual take-home assignments. I will uphold UVM policies on
academic integrity. Take home assignments are to be submitted at the beginning of the class on
the day they are due, unless otherwise noted.
Online assignments will be administered on Bb. There will be an online quiz for each required
chapter of the textbook. To make sure everyone has read the necessary chapter before the lecture,
the online quiz on Blackboard is due at 3:00 pm (start time of the class) on a date I specify
(typically the first day that chapter will be covered in class).
I will drop one written assignment OR one online assignment whichever has the lowest %
score. This includes any assignment where you get a score of zero because you forgot to do it, or
submitted late, or because you were absent. Once you get a zero on any assignment that is
it! There is no chance to make up for it. That zero score will be dropped, and all your other
assignments, no matter how many zeroes there are, will count toward your grade. No exceptions.
If you miss an assignment deadline due to an absence, your assignment score depends on whether
your absence is excused or not. I reserve the right to request for proof and judge whether your
absence is excused or not. If it is unexcused, you will automatically get a score of zero on that
assignment. If I deem that you have an excused absence, some accommodations may be made on
a case by case basis.
3.
In-class quizzes or in-class group exercises
There are two kinds of in-class activities: individual quizzes and group exercises. Together, they
constitute 5% of your grade.
Individual in-class quizzes will NOT be announced ahead of time. I do not check attendance but
your failure to come to class automatically forfeits you the chance to take the in-class quiz.
In-class group exercises will be announced ahead of time in class and on Bb, with some delay. It
is your responsibility to be aware of when the in-class exercises will be; failure to come to class
or to check Bb is not an excuse to miss the homework.
There is no opportunity to make up for any missed in-class quizzes or group exercises. An in
class quiz or group exercise is NOT among the assignments that can be dropped from your grade.
4.
Exams
There will be three one hour exams: September 26 (F), October 31 (F), and December 12 (F).
The final exam is non-cumulative; but the concepts and tools you need to answer the questions
are related to topics covered before the 2nd exam.
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Fall 2014
Excused Absences during any exam dates are excused only for personal medical situations and
family emergencies. University policy specifies that “In the event of illness requiring
hospitalization or extended absence from classes because of a medical condition, with permission
from the student, a designated member of the Primary Care/Women’s Health staff will notify the
student's Dean's Office who will then be in touch with the student’s faculty.” Please make sure to
contact the CAS Office of Student Affairs if you get hospitalized. If I deem that your absence an
exam is excused, you would need to schedule with me a make-up exam as soon as possible. You
need to take the make-up exam within a week of your return. This exam will be different from
the original exam.
Unexcused Absences during either of the midterms or the final exam mean that you will
automatically receive a score of zero on that missed exam. Early departure for Thanksgiving
break is not considered an excused absence regardless of how early you have made your plans.
University policy requires you to attend all scheduled classes.
I reserve the final authority to excuse any type of absences, and final authority on deciding on
missed exams.
5.
Attendance
I will not check attendance. Anything you miss is your responsibility. Whatever you miss when
you are absent, come late, leave early, and register late is also your responsibility.
Disruptive students (those making noise, ostentatiously not paying attention, and leaving and
reentering the classroom inappropriately) may be asked to leave the class. They are responsible
for the materials they miss.
6.
Office Hours and email
Please use the Messages tool on the course Bb page as our Course email in lieu of my UVM
email. It will allow me to have clear access to the emails from students in this class without them
getting swamped by other UVM related emails. If you use my UVM email, I may miss your
message.
Office hours are designed to help students with difficult concepts and challenging quantitative
exercises. Office hours are not designed for personal tutorial sessions for students who miss
classes, come late or leave early, unless the absence is excused. I do not make a habit of
explaining exams, lectures, assignments and any significant course content by Course email. If
you need something clarified, come to my office hours or you can speak with me before or after
the class. You can set appointments outside of my office hours by email.
7.
Special Considerations
I will strictly follow University of Vermont policies regarding student athletes, special religious
events, learning disabilities, proctoring needs, extra examination time, etc. Please be aware that
there are deadlines for informing me of your special needs. Missing the deadline would mean
you will not be given any special considerations. This includes note-taking assistance and use of
proctoring services for exam.
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Fall 2014
Specific Instructions for Online Multiple Choice Assignment on Bb
Below are the instructions that you will see in each online quiz on Bb. “XXX” indicate the details that
may vary for each online assignment.
Read ALL instructions before answering any questions. Failure to follow one
or a combination of instructions may cause Bb to freeze and your homework to
be submitted as incomplete. It will be recorded as such.
1. Due date: XXXXX, XXXXX, 3:00 pm.
deadline, you get a zero.
Absolutely no extensions! You miss the
2. This is a multiple choice only homework: XX questions, XX points
3. You will be given XXX hour for this homework.
4. You are allowed only one attempt for this homework.
5. Specific instructions:
a. Make sure your internet connection is stable. If not, you may get logged
in the middle of a homework and you will fail to complete the homework or get
a zero. I will record it as such.
b. Use a computer not ipad nor a game console.
c. Use Firefox. Other browsers have been shown to cause problems. You may get
logged out or Bb may freeze. Hence, you may get a zero or your homework will
be submitted incomplete. I will record it as such.
d. Do each homework in one sitting. You cannot go halfway. There is no saving
and stopping the clock option. The clock runs the moment you start the
homework and cannot be stopped or restarted. If you leave the window open and
your computer hibernates, the Bb will submit the homework as is. I will
record whatever homework is submitted.
e. Do not press the “back” button. It may cause you to be logged out and your
homework to be submitted as incomplete. I will record it as such. Hence, you
cannot peek at the questions and come back later.
f. Each multiple choice question will be posted one at a time and you will
not be allowed to scroll through questions.
g. There is no backtracking! Once you skip any question, it will be left
unanswered, and there is no option to go back. Hence, I suggest reviewing the
material beforehand, and preparing for the homework as if you are taking an
exam.
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