Course Description - APEC 6500

This is the first course in a two-course sequence that is designed to introduce advanced undergraduates and masters-level students in applied economics to the analytical techniques commonly used by economists in the study of resource management problems. While the second course concentrates on (1) characterizing various types of environmental problems, (2) investigating the standard, real-world market mechanisms economists have proposed to ameliorate these problems, and (3) studying the theory and various empirical methods that guide economic valuation of the benefits derived from preservation of the environment, this course focuses on the issues of resource-use, scarcity, and conservation. We begin with a brief review of key concepts germane to the study of resource economics, such as the role of property rights as an efficient allocation mechanism, the framework for decision-making over time (i.e., net present value analysis), sustainability criteria, and the determination of resource scarcity. From here we begin our journey through the various static models that have been developed over time to illustrate the necessary conditions for efficient allocations of land, water, and fisheries. The classic fishery model serves as a convenient jumping off point for subsequent dynamic analysis of various resource-management problems. For this second half of the course we focus on the inter-temporal management of non-renewable (e.g., minerals) and renewable (once again, fisheries) resources.