Advanced Environmental and Natural Resource Economics

Dynamic optimization; Theory of optimal extraction of renewable and non-renewable resources; Theory of joint production; Application of game theory to resource management; Optimal growth and green accounting

At the end of the module students have a profound knowledge of the economics of resource problems. They can derive the optimal time path to use renewable and non-renewable resources. They can explain how resources can be incorporated in the theory of optimal growth and how they can be accounted for in welfare and sustainability measurement. They can explain how some welfare enhancing effects are produced as a side effect of production systems. They are able to apply resource economic theory to real life resource problems. They know how to apply the basic concepts of game theory and how these can be used to explain the (im)possibilities of reaching international environmental agreements. By the delivery of a presentation, students demonstrate the ability to understand an economic/ scientific subject out of its theoretical abstraction, to analyse and evaluate relevant policy measures and factors of influence, to summarize the subject and present it to an audience, and to stand a discussion about the presented subject. By the written summary, they improve their ability to summarise the major facts and the conclusion of a presentation in a clear and concise manner. Also, they learn how to integrate different views on questions of resource use and how to critically reflect on them.

The examination consists of a written exam (Klausur, 90 min). In the written examination, students demonstrate by answering questions under time pressure and only with the help of a calculator the theoretical and practical knowledge of resource problems. By answering to open questions, students can proof their ability to describe apply economic theory, for example, by demonstrating their understanding of the problem of optimal time paths of resource use, or by explaining welfare effects of production systems. In addition, there is the possibility to perform a voluntary study performance as a mid-term performance according to APSO §6 (5). For this, a presentation (20 min) has to be passed. By passing the course work, the module grade is improved by 0.3, if, based on the overall impression, this better characterizes the student's performance level, and the deviation has no influence on the passing of the examination. No repeat date is offered for the mid-term performance. In the case of repeating the module examination, a mid-term performance already achieved will be considered.

Basic knowledge of environmental and natural resource economics is recommended.

Lectures will be used to teach the theoretical material. The other part of the module will consist of a seminar. There, students under the supervision of the instructors will apply the theory taught in the lectures to solve problems and to facilitate a better understanding of the subject matter. In order to enable students to critically reflect on lecture topics, interactive elements are integrated (e.g., group work, case studies). Students are encouraged to actively participate in the course programme by giving a presentation (20 min), which shall also be prepared in written form (around 10 pages). The presentation shall analyse a lecture topic in detail and place it in the economic environment. It shall be designed in a way that allows the demonstration of theoretical economic concepts in real life examples (e.g., environmental agreements in game theory, methods of environmental evaluation). By preparing a presentation on their own and developing a short paper of it, students will enhance and deepen the knowledge gained in the lecture and learn how economic theory is applied in real life situations.