NATURAL RESOURCES ECONOMICS
Syllabus
EN
IT
Learning Objectives
The course introduces the economic principles that shape the use and management of natural resources, while examining a central debate between two contrasting perspectives. One view warns that resource depletion and ecosystem degradation are advancing to a level that threatens the long-term well-being of human societies. The other argues that technological innovation and international cooperation can effectively address these challenges. Against this background, the course emphasises the importance of understanding how economic incentives, institutional frameworks and public policies influence the use of resources, and how these can be designed to support environmental sustainability.
Learning Outcomes
The course contributes to the achievement of the objectives of the degree course, in line with the professional profiles and employment outlets envisaged, providing students with notions useful for an in-depth and critical understanding of some major debates in the management of natural resources. By the end of the course, students will be able to:
1. recognize the importance of tracing the origin of production inputs and understanding waste generation and disposal processes;
2. explain and assess the efficient and optimal use of both non-renewable (depletable) and renewable natural resources;
3. evaluate how national and international policy choices affect the future availability of natural resources and the sustainability of economic growth;
4. understand the utility-theoretic foundations of environmental valuation methods and apply these techniques to illustrative cases (e.g., biodiversity);
5. apply the concepts of efficiency, optimality, and sustainability to assess whether public-sector decisions at national, international, and global levels are consistent with sustainable development.
KNOWLEDGE AND UNDERSTANDING:
At the end of the course, students will know the arguments leading to identify efficient and equitable conditions in the use of natural resources. They will also be able to formulate problems of comparative analysis among different situations arising from different decisions regarding the use of natural resources.
APPLYING KNOWLEDGE AND UNDERSTANDING: The course provides tools to understand the basic concepts concerning the social choices of one country or a group of countries (e.g., Europe) that are responsible for results not in line with declared targets. Following the lectures, students will consolidate their knowledge of the fundamental concepts of natural resources use and their ability to independently apply the knowledge they have acquired to identify cause-effect relationships in the choices of producers and consumers.
MAKING JUDGEMENTS: the ability to draw independent judgments and conclusions about the sustainability of economic growth is stimulated by highlighting the connections between the concepts developed during the course, the notions acquired in previous courses and the links between these notions and the major contemporary economic problems.
COMMUNICATION SKILLS: By attending the course and interacting with the lecturer, students will develop their communication skills and their ability to organise and share articulate reasoning concerning the actual economic use of natural resources and its consequences. They will learn to present the economic foundations of the States' position clearly and to use appropriate terminology.
LEARNING SKILLS: Through the course, students will acquire the ability to independently analyse and investigate specific topics related to the course contents. By the end of the course, students will have developed a strong analytical foundation in the economics of natural resources, enabling them to pursue advanced studies, including PhD programmes in Italy or abroad.
Learning Outcomes
The course contributes to the achievement of the objectives of the degree course, in line with the professional profiles and employment outlets envisaged, providing students with notions useful for an in-depth and critical understanding of some major debates in the management of natural resources. By the end of the course, students will be able to:
1. recognize the importance of tracing the origin of production inputs and understanding waste generation and disposal processes;
2. explain and assess the efficient and optimal use of both non-renewable (depletable) and renewable natural resources;
3. evaluate how national and international policy choices affect the future availability of natural resources and the sustainability of economic growth;
4. understand the utility-theoretic foundations of environmental valuation methods and apply these techniques to illustrative cases (e.g., biodiversity);
5. apply the concepts of efficiency, optimality, and sustainability to assess whether public-sector decisions at national, international, and global levels are consistent with sustainable development.
KNOWLEDGE AND UNDERSTANDING:
At the end of the course, students will know the arguments leading to identify efficient and equitable conditions in the use of natural resources. They will also be able to formulate problems of comparative analysis among different situations arising from different decisions regarding the use of natural resources.
APPLYING KNOWLEDGE AND UNDERSTANDING: The course provides tools to understand the basic concepts concerning the social choices of one country or a group of countries (e.g., Europe) that are responsible for results not in line with declared targets. Following the lectures, students will consolidate their knowledge of the fundamental concepts of natural resources use and their ability to independently apply the knowledge they have acquired to identify cause-effect relationships in the choices of producers and consumers.
MAKING JUDGEMENTS: the ability to draw independent judgments and conclusions about the sustainability of economic growth is stimulated by highlighting the connections between the concepts developed during the course, the notions acquired in previous courses and the links between these notions and the major contemporary economic problems.
COMMUNICATION SKILLS: By attending the course and interacting with the lecturer, students will develop their communication skills and their ability to organise and share articulate reasoning concerning the actual economic use of natural resources and its consequences. They will learn to present the economic foundations of the States' position clearly and to use appropriate terminology.
LEARNING SKILLS: Through the course, students will acquire the ability to independently analyse and investigate specific topics related to the course contents. By the end of the course, students will have developed a strong analytical foundation in the economics of natural resources, enabling them to pursue advanced studies, including PhD programmes in Italy or abroad.
Prerequisites
Courses in Microeconomics and Macroeconomics
Program
The course programme is divided into 10 inter-related parts as follows:
1) Introductory concepts focusing on the economic theory
2) Exhaustible resources: the theory of optimal depletion and the intergenerational problem
3) Renewable resources: the theory of optimal use and technology
4) The valuation of natural resources
5) Energy economics
6) Forest economics
7) Water as a Renewable and Exhaustible Resource
8) Economics of Agriculture
9) Biodiversity preservation
10) Are natural resources an operational constraint to continuous global growth? From the Limits to Growth Debate to the Planetary Boundaries Framework
During each lecture, the lecturer presents the planned content with the aid of power point presentations and invites students to critical reflection and dialogue.
1) Introductory concepts focusing on the economic theory
2) Exhaustible resources: the theory of optimal depletion and the intergenerational problem
3) Renewable resources: the theory of optimal use and technology
4) The valuation of natural resources
5) Energy economics
6) Forest economics
7) Water as a Renewable and Exhaustible Resource
8) Economics of Agriculture
9) Biodiversity preservation
10) Are natural resources an operational constraint to continuous global growth? From the Limits to Growth Debate to the Planetary Boundaries Framework
During each lecture, the lecturer presents the planned content with the aid of power point presentations and invites students to critical reflection and dialogue.
Books
Textbook:
Field, Barry C. Natural resource economics: An introduction. Waveland Press, Fourth Edition.
Field, Barry C. Natural resource economics: An introduction. Waveland Press, Fourth Edition.
Bibliography
Fullerton, Don, and Robert Stavins. How Economists See the Environment. Nature
395, no. 6701 (October 1, 1998): 433–-34.
Stavins, Robert N. The Problem of the Commons: Still Unsettled after 100 Years.
American Economic Review 101, no. 1 (2011): 81–1-08.
Kuwayama, Yusuke, Sheila Olmstead, and Jiameng Zheng. A more comprehensive
estimate of the value of water quality. Journal of Public Economics 207 (March 1,
2022): 104600.
Pelletier, Marie-Chantale, Elizabeth Heagney, and Mladen Kovac. Valuing recreational
services: A review of methods with application to New South Wales National
Parks. Ecosystem Services 50 (August 1, 2021): 101315.
Metrick, Andrew, and Martin L. Weitzman. Conflicts and Choices in Biodiversity
Preservation. Journal of Economic Perspectives 12, no. 3 (1998): 21–-34.
Hickel, J. (2020). The sustainable development index: Measuring the ecological efficiency of human development in the anthropocene. Ecological economics, 167, 106331.
Assa, J. (2021). Less is more: The implicit sustainability content of the human development index. Ecological economics, 185, 107045.
Rockström, J., Steffen, W., Noone, K., Persson, Å., Chapin III, F. S., Lambin, E., ... & Foley, J. (2009). Planetary boundaries: exploring the safe operating space for humanity. Ecology and society, 14(2).
Fanning, A. L., O’Neill, D. W., Hickel, J., & Roux, N. (2022). The social shortfall and ecological overshoot of nations. Nature sustainability, 5(1), 26-36.
Hickel, J., Kallis, G., Jackson, T., O’neill, D. W., Schor, J. B., Steinberger, J. K., ... & Ürge-Vorsatz, D. (2022). Degrowth can work - here’'s how science can help. Nature, 612(7940), 400-403.
Hickel, J., O’Neill, D. W., Fanning, A. L., & Zoomkawala, H. (2022). National responsibility for ecological breakdown: a fair-shares assessment of resource use, 1970 - 2017. The Lancet Planetary Health, 6(4), e342-e349.
395, no. 6701 (October 1, 1998): 433–-34.
Stavins, Robert N. The Problem of the Commons: Still Unsettled after 100 Years.
American Economic Review 101, no. 1 (2011): 81–1-08.
Kuwayama, Yusuke, Sheila Olmstead, and Jiameng Zheng. A more comprehensive
estimate of the value of water quality. Journal of Public Economics 207 (March 1,
2022): 104600.
Pelletier, Marie-Chantale, Elizabeth Heagney, and Mladen Kovac. Valuing recreational
services: A review of methods with application to New South Wales National
Parks. Ecosystem Services 50 (August 1, 2021): 101315.
Metrick, Andrew, and Martin L. Weitzman. Conflicts and Choices in Biodiversity
Preservation. Journal of Economic Perspectives 12, no. 3 (1998): 21–-34.
Hickel, J. (2020). The sustainable development index: Measuring the ecological efficiency of human development in the anthropocene. Ecological economics, 167, 106331.
Assa, J. (2021). Less is more: The implicit sustainability content of the human development index. Ecological economics, 185, 107045.
Rockström, J., Steffen, W., Noone, K., Persson, Å., Chapin III, F. S., Lambin, E., ... & Foley, J. (2009). Planetary boundaries: exploring the safe operating space for humanity. Ecology and society, 14(2).
Fanning, A. L., O’Neill, D. W., Hickel, J., & Roux, N. (2022). The social shortfall and ecological overshoot of nations. Nature sustainability, 5(1), 26-36.
Hickel, J., Kallis, G., Jackson, T., O’neill, D. W., Schor, J. B., Steinberger, J. K., ... & Ürge-Vorsatz, D. (2022). Degrowth can work - here’'s how science can help. Nature, 612(7940), 400-403.
Hickel, J., O’Neill, D. W., Fanning, A. L., & Zoomkawala, H. (2022). National responsibility for ecological breakdown: a fair-shares assessment of resource use, 1970 - 2017. The Lancet Planetary Health, 6(4), e342-e349.
Teaching methods
The course combines different teaching methods: lectures; seminars; student presentations. The lectures will provide the students with the necessary information and reading guidelines on the phenomena under study, while seminars will see students critically engage with this knowledge and encourage/participate in class debates. Students are expected to attend each class, to come to class prepared and to participate in discussions.
Students will agree the topic of their presentations with the lecturers and give assessed Power-point presentations in which they will critically evaluate the content and argument of a chosen topic and introduce related questions for the class discussion.
Students will agree the topic of their presentations with the lecturers and give assessed Power-point presentations in which they will critically evaluate the content and argument of a chosen topic and introduce related questions for the class discussion.
Exam Rules
Course assessment
Attending students
Class participation (10% of final grade)
Midterm examination (40% of final grade)
The mid-term examination comprises a compulsory presentation of a published article relating to the topics covered in class.
Rules for the presentation: students can work on their presentations alone or in groups. A group may comprise 2 to 3 students. The students agree on the topic of the presentations with the lecturers, individually or in groups. Each student/group prepares its presentation and emails it to the lecturers at least one day in advance of the day scheduled for class discussion.
Final examination (50% of final grade)
The final exam is a one-and-a-half-hour written test consisting of three questions covering the entire programme.
Non-attending students (students with less than 80% of presence in class) and students that have turned down the attending student grade or failed the attending student evaluation will be required to sit a mandatory written examination. The exam is a two-hour written test consisting of six questions that cover the entire course materials.
Students may take the examination on all available dates, there is no roll-call jump.
Minimum score for passing the written test 18 out of 30.
The examination will be assessed according to the following criteria:
• FAIL: important deficiencies and/or inaccuracies in the knowledge and understanding of the topics; limited ability to analyse and synthesise, frequent generalisations and limited critical and judgemental skills, the topics are set out inconsistently and with inappropriate language;
• 18-20: Barely sufficient knowledge and understanding of the topics with possible generalisations and imperfections; sufficient capacity for analysis, synthesis and autonomy of judgement, the topics are frequently exposed in an incoherent manner and with inappropriate/technical language;
• 21-23: Routine knowledge and understanding of topics; ability to analyse and synthesise correctly with sufficiently coherent logical argumentation and appropriate/technical language
• 24-26: Fair knowledge and understanding of the topics; Good analytical and synthetic skills with arguments expressed in a rigorous manner but with language that is not always appropriate/technical.
• 27-29: Comprehensive knowledge and understanding of the topics; considerable capacity for analysis and synthesis. Good autonomy of judgement. Arguments presented in a rigorous manner and with appropriate/technical language
• 30-30L: Excellent level of knowledge and thorough understanding of topics. Excellent analytical and synthetic skills and independent judgement. Arguments expressed in an original manner and with appropriate technical language.
Attending students
Class participation (10% of final grade)
Midterm examination (40% of final grade)
The mid-term examination comprises a compulsory presentation of a published article relating to the topics covered in class.
Rules for the presentation: students can work on their presentations alone or in groups. A group may comprise 2 to 3 students. The students agree on the topic of the presentations with the lecturers, individually or in groups. Each student/group prepares its presentation and emails it to the lecturers at least one day in advance of the day scheduled for class discussion.
Final examination (50% of final grade)
The final exam is a one-and-a-half-hour written test consisting of three questions covering the entire programme.
Non-attending students (students with less than 80% of presence in class) and students that have turned down the attending student grade or failed the attending student evaluation will be required to sit a mandatory written examination. The exam is a two-hour written test consisting of six questions that cover the entire course materials.
Students may take the examination on all available dates, there is no roll-call jump.
Minimum score for passing the written test 18 out of 30.
The examination will be assessed according to the following criteria:
• FAIL: important deficiencies and/or inaccuracies in the knowledge and understanding of the topics; limited ability to analyse and synthesise, frequent generalisations and limited critical and judgemental skills, the topics are set out inconsistently and with inappropriate language;
• 18-20: Barely sufficient knowledge and understanding of the topics with possible generalisations and imperfections; sufficient capacity for analysis, synthesis and autonomy of judgement, the topics are frequently exposed in an incoherent manner and with inappropriate/technical language;
• 21-23: Routine knowledge and understanding of topics; ability to analyse and synthesise correctly with sufficiently coherent logical argumentation and appropriate/technical language
• 24-26: Fair knowledge and understanding of the topics; Good analytical and synthetic skills with arguments expressed in a rigorous manner but with language that is not always appropriate/technical.
• 27-29: Comprehensive knowledge and understanding of the topics; considerable capacity for analysis and synthesis. Good autonomy of judgement. Arguments presented in a rigorous manner and with appropriate/technical language
• 30-30L: Excellent level of knowledge and thorough understanding of topics. Excellent analytical and synthetic skills and independent judgement. Arguments expressed in an original manner and with appropriate technical language.
Attendance Rules
Attendance is required from the very first lesson and it is necessary to attend at least 80% of the course to be considered an attending student.