FREC 324: Intro to Resource Economics -- Spring 2012 Course Syllabus
Tuesdays & Thursdays 9:30-10:45 in Ewing 203
(Some Tuesday classes will be conducted in a computer lab: Townsend 006 or Pearson 203)
Instructor: John Mackenzie
office: Townsend 215
e-mail: johnmack at udel.edu
office phone: 302-8310-1312
dept. phone: 302-831-2511
fax: 302-831-6243
cell: 302-373-3723
office hours: Wednesdays 1-3 PM or by appointment
Homework Assignments:
  1. Basic Production Model in Excel
  2. Welfare Measures and Market Distortions
  3. Discounting for Time and/or Risk
  4. Non-Renewable Resource Depletion
  5. Non-Renewable Resource Depletion: Variations
  6. Optimal Timber Harvest
  7. Open-Access Fishery Problem
  8. Shadow Prices

    SECOND HOUR EXAM

Power Tools
  1. Excel tools
  2. Intro to Excel Solver | Examples
  3. Discounting | Buy a house
  4. Price risk
  5. Monte Carlo simulation: pooling independent risks
  6. Intro to regression analysis
  7. Logistic growth models
  8. Game theory
Text:   Field, Barry. 2008. Natural Resource Economics: an Introduction (Second Edition, paperback, Waveland Press).  Get yourself a copy online for ~$50 new or ~$25 used.

Grading: Homework assignments total 70 points plus 2 hour exams @ 15 points each = 100 points.

Course Objectives:  At the end of this course you should understand how competitive market processes generally yield efficient allocations of resources through time and between alternative uses; how various market failures arise and affect allocative efficiency; how sound economic policies can correct these failures, and how bad policies can worsen them.

Class Policies: Most of the course assignments require use of Microsoft Excel.  Assignments must be turned in by their due dates; no late work will be accepted. You may consult with other students for clarifications of these problems, but the answers you submit must be your own. You are expected to comply with the University's policies on academic honesty as explained in the leaflet distributed by the Office of the Dean of Students.

Course Outline:
  1. basic principles | intro | demand review
  2. basic themes
  3. pessimists vs. optimists; Ricardo; reserves
  4. property rights & externalities
  5. open-access resources, public goods, etc.
  6. government | public choice | government failures
  7. discounting for time and risk
  8. insurance basics
  9. resource rents: leveraged growth & risk
  10. reserves and Hotelling's Rule
  11. Maximizing rents: when and how much to extract
  12. exam prep
  13. first hour exam
  14. Mineral markets and policies; recycling
  1. Energy, OPEC and the political economy of oil
  2. Public utilities; animal spirits
  3. Guns, Germs & Steel
  4. Geopolitics of natural resources
  5. Forest resources & US forest policy
  6. Marine fisheries; conservation strategies
  7. Land economics: location, price, land-use conflicts
  8. Land-use change; development and conservation
  9. Water resources: allocations, transfers and pricing
  10. Outdoor recreation; travel-cost models
  11. Wildlife management; public lands; biodiversity
  12. Resource exploitation in LDC's; war and famine
  13. Paths to development
  14. Second Hour Exam