363-0552-00L Economic Growth and Resource Use
|Semester||Spring Semester 2015|
|Periodicity||yearly recurring course|
|Language of instruction||English|
|Abstract||The lecture focuses on the economics of non-renewable resources and deals with the main economic issues regarding such commodities.|
|Objective||The objective of the lecture is to make students familiar with the main topics in the economics of non-renewable natural resources so that they become able to autonomously read much of the academic literature on the issue. The economics of natural resources adds an intertemporal dimension to the classical static theory. The analyses provided in the lecture will use basic dynamic optimization tools; students are also expected to develop or consolidate their related technical skills.|
|Content||The lecture focuses on the economics of non-renewable resources and deals with the main economic issues regarding such commodities. Two peculiarities of natural resources make them interesting economic objects. The intertemporal dimension of resource exploitation is absent in standard static treatments of classical economic theory. The non-renewability of natural resources further implies long-term supply limitations, unlike conventional goods that are indefinitely reproducible. Because of those peculiarities, many well-known economic results do not apply to the case of resources.|
As it is appropriate in most chapters, priority will be given to a synthetic partial equilibrium setting. Elementary knowledge of microeconomics (like what is provided by H. Varian, Intermediate Microeconomics) is considered as a prerequisite. Moreover, an introduction to standard partial equilibrium analysis will be provided at the beginning of the lecture. General equilibrium effects should be introduced as they become crucial, as will be the case in the chapters on the interplay between economic growth and resource depletion.
The questions addressed in the lecture will be the following ones:
The intertemporal theory of non-renewable resource supply; the dynamic market equilibrium allocation; the exploration and development of exploitable reserves; the heterogenous quality of resource deposits; pollution and other externalities arising from the use of fossil fuels; the exercise of market power by resource suppliers and market structures; socially optimum extraction patterns and sustainability; the taxation of non-renewable resources; the international strategic dimension of resource taxation; the uncertainty about future reserves and market conditions; economic growth, resource limitations, and the innovation process...
|Lecture notes||Lecture Notes of the course will be sent by email to officially subscribed students.|
|Literature||The main reference of the course is the set of lecture notes; students will also be encouraged to read some influential academic articles dealing with the issues under study.|
|Prerequisites / Notice||Elementary knowledge of microeconomics (like what is provided by H. Varian, Intermediate Microeconomics) is considered as a prerequisite.|