YLE13 Advanced Natural Resource Economics
Mon 10-12 room 340 (sh 11) and Tue 12-14 room C130.
* = next lecture, todo
-ability to read the literature
-understand basic issues and models (dynamic, game theory)
-ability to formulate resource problems
-ability to solve simple problems
-you can get up to 40% of the points from article, presentation and exercises, the rest comes from the exam. For example you do the essay based on your chosen article but not excercises nor presentation your exam accounts for 90% of the grade
40-55 points 1
56-70 points 2
71-80 points 3
81-90 points 4
91-100 points 5
0 Brief introduction to optimal control theory 31.10. (updated 1.11.)
1 Non-renewable resources
1.1 Hotelling model 1.11.
1.2 Duopoly 7.11.
1.3 Two resources 8.11.
1.4 Matlab illustrations 21.11.
2 Renewable resources
2.1 Clark-Munro model 14.11.
2.2 Schäfer-Gordon model 15.11.
2.4 Coalition game models 28.11. & 29.11. *
Return weekly eg by email by the following Monday's lecture
1. Let the backstop price be 118, optimal time to exhaustion 50 and the discount rate 5%. Compute the optimal price of the competitive industry at t=0, t=10 and t=50. (return by 7.11. at 10.15)
2. Show that the optimal extraction path is decreasing in time. Further show that the competitive market's optimal extraction path is steeper compared to the monopoly extraction path. (return by 14.11. at 10.15)
3. doc (return by 21.11. at 10.15)
4. See lecture note (1.4) (return by 28.11. at 10.15)
5. See lecture note (2.3) (return by 5.12. at 10.15)
6. Compute stability of grand coalition for two 3-player games: a) c1=7, c2=17 and c3=20 & b) c1=7, c2=9 and c3=11 (return by 7.12.)
Additional exercise on Schäfer-Gordon model: Compute the Effort, Stock and Profit of optimal, MSY and open access case when p=1, c=6, K=10, q=1, R=0.8. (return by 5.12. at 10.15)
Write a 3-5 page essay in a group of 1-3 persons. Explain the model, its results and the link to the issues discussed during lectures.
Presentation of the article
10% Note. if you have ppt slide (max 3) to present send them to me in advance.
12.12. 5 min presentation
9.12. (You need to register in Weboodi)
Hanley, Shogren, White: Environmental Economics: In Theory and Practice, 2nd edition Chapters 7-9
Clark: Mathematical Bioeconomics: The Mathematics of Conservation, 3rd edition Chapters 1-3
(Incomplete) Article list (let me know which one you prefer, one group per article)
Chakravorty, Magne & Moreaux . A Hotelling model with a ceiling on the stock of pollution Journal of Economic Dynamics & Control 30 (2006) 2875–2904
Chakravorty, Moreaux, and Tidball . Ordering the Extraction of Polluting Nonrenewable ResourcesAmerican Economic Review , 98:3, 1128–1144
Van der Werf, Edwin, and Sjak Smulders . "Climate Policy and the Optimal Extraction of High and Low Carbon Fossil Fuels." Canadian Journal of Economics (Elina Sailio)
P. Pintassilgo, M. Finus, Marko Lindroos and G. Munro . Stability and Success of Regional Fisheries Management Organizations. Environmental and Resource Economics 46, 377-402.
L. Kronbak and Marko Lindroos . On Species Preservation and Non-Cooperative Exploiters, Strategic Behavior and the Environment 1, 49-70. (Heini Koutonen & Tommi Tikkanen)
P. Pintassilgo, L.G. Kronbak & Marko Lindroos . International Fisheries Agreements: A Game Theoretical Approach. Environmental and Resource Economics 62, 689-705. (Kaius Oljemark, Riku Lindqvist & Kenneth Söderling)
E. Nieminen, L.G. Kronbak and Marko Lindroos . International Agreements of the Multispecies Baltic Sea Fisheries. Environmental and Resource Economics. (Vesa-Pekka Parkatti)
S. Oinonen, P. Levontin, K. Parkkila, E. Nieminen, H. Pulkkinen, A. Romakkaniemi, P. Pintassilgo, L.G. Kronbak, M. Laukkanen and Marko Lindroos . International fisheries management and recreational benefits: the case of the Baltic salmon. Marine Resource Economics. (Claudia Luengo)
Long, L.K. 2009. Regional fisheries management organisation with an endogenous minimum participation level for cooperation in straddling stock fisheries. Fisheries Research 97, 42-52.
Long, L.K. and O. Flaaten. 2011. A Stackelberg Analysis of the Potential for Cooperation in Straddling Stock Fisheries. Marine Resource Economics 26, 119-139.
Margrethe Aanesen, Claire Armstrong 2016. The political game of European fisheries management Environmental and Resource Economics.
Material in Finnish
2 Uusiutuvat luonnonvarat
Seppo Salo: Optimiohjausteoria ja variaatiolaskenta
Leonard van Long: Optimal Control Theory and Static Optimization in Economics
Jon Conrad: Resource Economics
Conrad & Clark: Natural Resource Economics
Lee Anderson (ed.) (2002): "Fisheries Economics:
Collected Essays", Ashgate. (esim. Clark & Munro artikkeli
Grafton et al. Handbook of Marine Fisheries Conservation and Management
myle 20%, *
Yliopistonlehtori Marko Lindroos
s-posti: etunimi.sukunimi ät helsinki.fi