APEC 100
Society and the Value of Nature
Department of Resource Economics
Instructor: Dr. Kimberly Rollins e-mail: krollins@cabnr.unr.edu
FA 220A phone: 784-1677
Class Room: 101 RSJ
Final Exam: 7:30 – 9:30 AM Friday December 16
Short description
An overview of the economic importance of nature to society, with a focus on how markets can fail to take this value into account, the implications of such market failure, and how policies can be designed and implemented to reflect its importance to present and future generations.
Books to buy:
Gretchen C. Daily and Katherine Ellison, New Economy of Nature: The Quest to Make Conservation Profitable, Island Press, Washington D.C., 2002.
Barnes, Peter, Who Owns the Sky? Island Press, Washington D.C., 2001.
Heal, Geoffrey, Nature and the Marketplace: Capturing the Value of Ecosystem Services, Island Press, Washington D.C., 2000.
Suggested Readings ...just click on the links below
Valuing Nature and Ecosystem Services - an essay from "Resources", a publication of Resources for the Future.
Non-Market Valuation for Informing Public Policy, An easy to read short set of essays about environmental valuation and public policy. These were written by resource economists from various academic institutions in North America and published in the magazine "Choices", a publication of the American Agricultural Economics Association. This is a great basic introduction to Non-market Valuation.
Public Lands and Western Communities, A USDA Economic Research Service Publication describing multiple use management of Western public lands while the population and people's preferences for uses of these lands are changing rapidly. If you don't read anything else this week - READ THIS --- (Would you like to do this kind of work in the future? Many resource management agencies, including BLM in Nevada, are looking at unprecedented retirement rates - and thus hiring rates for new graduates. They will be looking especially for people who can do the type of analytical work that this report is based on.)
Greening the Books, The Economist, Sept 15, 2005 - This short article discusses the role of environmental assets in providing for the general well-being of the citizens of a country. The article points out that the standard asset and debit national accounting systems omit quality of the environment. The outcome could be that poor countries with bountiful natural assets could look 'better' on paper as they reduce environmental quality and increase production of man-made goods and services. The article is written specifically in the context of Costa Rica, but can apply to many countries. This is not a new topic and much about "Green Accounting" is available in print and on the internet for further interest.
Wolf, Kathleen L., Public Value of Nature: Economics of Urban Trees, Parks and Open Space, 2004
Daily, Gretchen C., The Value of Nature and the Nature of Value, 2000
Objectives
A primary goal of this course is to help students better understand the linkages between economy, society and environment. Secondary goals include helping students to formulate concise statements of economic problems and hypotheses, to develop report-writing and presentation skills.
Evaluation Criteria
Evaluation method points
Assignments 30 %
Midterm Exams (2) 40 %
Report 15 %
Final Exam 25 %
Total points 100%
Course Description
This course considers how the importance of nature is (and is not) reflected in the social values we place on nature and natural resources. Classroom discussion and readings focus on the following questions: How can the economic system result in degradation of something that most of us, individually, would say we ‘value’ very highly? What is the relationship between economic value and social value? Is the loss of nature’s ‘gifts’ similar to the loss in value of a capital asset? Is this a worthwhile comparison? Can economic pressures be used to promote conservation? How can we achieve an acceptable balance between resource use and conservation? Is ownership important? Are use restrictions important and if so, how are they achieved for public-owned resources? Who uses, or should, use public-owned resources? Who should pay to maintain them? Who bears the cost of their use? How might market mechanisms be used to protect valuable environmental assets for future generations? What is the role of the market in protecting our natural environment? These questions are considered in the context of natural resource use decision-making by government versus private businesses and individuals.
Economics is a social science (not to be confused with ‘economics’ as the activity that occurs as through social interactions that serve to exchange, save, utilize, preserve or otherwise allocate scarce resources among competing social agents – including current and future generations). Economics as a social science is the formal study of this activity. Economic theory allows us to develop testable hypotheses to understand and predict this activity. Thus the question of “why do we as a society appear to place too little ‘economic’ value on the gifts that nature provides us, when these resources are essential for our existence and way of life as we know it?” provides a starting point for an exploration of principles of economic theory, as well as for some lively debate.
This course as a University Core Curriculum Social Science Course
This course fulfills the University Core Curriculum Social Science requirement because we will develop and use basic economic principles in the context of investigation into a topic that affects us all.
The course is designed to stretch your critical thinking skills. What are critical thinking skills? One way I like to think about this is to acknowledge that sometimes we just do not have all of the ‘right’ answers to complex issues. So in this case, how do we develop and apply acceptable criteria to judge alternative answers? What answers make more or less sense? The ability to think critically prevents us from using simple, emotional, or ‘gut’ responses and instead to apply logical and objective criteria to better understand complex problems. Critical thinking skills developed in one context will carry over to any context. So even if you never use economic theory again to understand how society values nature (but I really hope not!)– the critical thinking skills you develop will most certainly be of use to you in your future.
Assignments
A series of short assignments will be given throughout the semester, approximately every other week. Complete instructions will be provided as assignments are given. Assignments will include, but are not limited to the following activities:
· Two to three paragraphs on assigned resource valuation questions that reflect current topics (for example: “What economic and social values should be considered in the decision to drill for oil in the Arctic National Wildlife Refuge?”).
· Applications of problem solving methods used in economic analysis (some algebra and graphing).
· End-of-chapter questions from the text
There will be a minimum of 6 assignments –your lowest assignment grade will be dropped. Neatness and organization of your assignments will affect your grade. When possible, use a word processor. When hand-written work is unavoidable, it is your responsibility to make it neat and legible.
Assignment 1: Due on Thursday Sept 22.
Assignment 2: Due on Tuesday October 3.
Assignment 4: Due on Tuesday November 8
Report
Content: Each student will choose a specific natural resource of interest, and describe how it’s used and valued by society in a 8-10 page paper. A separate handout will be provided in class with details on the topic and format for the report.
Readings for the course include three books that are available at the bookstore. Any other supplemental readings will be available on library electronic reserve, or through my website. I will also post optional readings and websites that will also be useful in developing ideas for your reports.
Course Content:
Section 1: What is “Value”? Competing theories and definitions. How these relate to Society and Nature.
Lecture Notes from Sept 1 and 6: Click here
Section 2: The individual versus Society: Common Property and Public Goods.
When individuals’ decisions impact others – Externalities
Lecture notes from Sept 8: Click here
Section 3: “Who Owns the Sky?” - case study of a public good.
Section 4: Review theories of value, public goods, and externalities while introducing economic principles and analytical techniques.
Link to library electronic reserve readings: http://0-reserves.library.unr.edu.innopac.library.unr.edu/circ/Rollins/100/apec100.htm
Section 5: Nature and the Marketplace: What is the role of markets and economic activity in how society values nature? How can we identify problems and what might be done to resolve them?
Section 6: The Economy of Nature: Can markets be used to make conservation profitable? Under what circumstances might such ideas work and not work?
Section 7: Alternative social systems and how these affect people’s interactions with nature.
Check out some of these links for further information about Economics and the Environment, Environmental Policy and Analysis, and Society and Nature:
Island Press - a very good source for books related to environment and economy
Resources for the Future - a non-profit non-governmental organization dedicated to economic analysis of environmental problems and environmental policies.
Greenpeace Program to Train University Students - I don't know too much about this program, it is in its second year. But it may be of interest to some students at UNR. If anyone does check it out, let me know what you thought of it.