VALUATION USING HOUSEHOLD PRODUCTION
14.42 LECTURE PLAN 15: APRIL 14, 2011
PASTURE 1: ONE SITE
Introduce intuition via PowerPoint slides
Draw demand curve with nearby and far away towns.
Question: Why do I say Demand Curve in quotes?
14.42 LECTURE PLAN 9: MARCH 15, 2011
PASTURE 1: REGULATING RISK WITH LIABILITY
Draw Risk Reduction graph
Optimum at the intersection.
Question: Why not regulate with liability?
Push question: Force the firm to pay the damage, and it
14.42 LECTURE PLAN 10: MARCH 29, 2011
PASTURE 1: COUNTERVAILING TARIFFS
Draw picture of countervailing tariffs.
Fundamental problem: the countervailing tariff cant get the price right in the producer market. So:
TOPICS IN CAP-AND-TRADE
14.42 LECTURE PLAN 8: MARCH 8, 2011
PASTURE 1: THOUGHTS ABOUT THE POWER PLANT VISIT
What was interesting to you about the visit?
Review the emissions control regulations the plant is subject to:
-Gas turbine is in NOx
14.42 LECTURE PLAN 7: MARCH 1, 2011
1. Connect the readings to an economic issue that we have discussed in class. Whats interesting
about this issue?
2. What influences allowance prices?
3. Was the program
COST BENEFIT ANALYSIS
14.42 LECTURE PLAN 4A: FEB 10, 2011
PASTURE 1: COST-BENEFIT ANALYSIS INTRO
LEFT BOARD 1: Supply and demand for pollution abatement
Initial condition: suboptimal pollution abatement
Where do these S&D curves come from?
14.42 LECTURE PLAN 5: FEB 15, 2011
PASTURE 1: OPTIMAL PIGOUVIAN TAX
Return to electricity and tourism example
LEFT BOARD 1: ELECTRICITY FIRMS: MARGINAL BENEFIT OF POLLUTION
Two different firms
w1= pWW- (1/2W2+E + F)
w2= pWW- (
14.42 LECTURE PLAN 6: FEB 24, 2011
PASTURE 1: CHESHIRE, OHIO AND THE COASE THEOREM
Question: Was this transaction a good thing?
LEFT BOARD 1:
Left side: Housing market
Draw Supply of Leavers
First: original supply of leavers
ENVIRONMENTAL KUZNETS CURVES
14.42 LECTURE PLAN 11: MARCH 31, 2011
PASTURE 1: EMPIRICAL RESULTS
Question: How have you seen the EKC where youre from?
Los Angeles vignette
Question: How would you test this formally?
Grossman and Krueger: exami
THE PORTER HYPOTHESIS
14.42 LECTURE PLAN 12: APRIL 5, 2011
PASTURE 1: PRODUCTIVITY
Left Board 1
Production function (at the firm level or economy level):
Y = Af(K,L)
Y = Output
A = total factor productivity
K = Capital
L = Labor
CLIMATE CHANGE POLICY
14.42 LECTURE PLAN 18: MAY 3, 2011
Go through class and ask people what they agreed with or disagreed with.
PASTURE A: STERNS ARGUMENT
How does Sterns logic differ from the usual argument about climate change?
SOUTH POLE CARBON ASSET MANAGEMENT
14.42 LECTURE PLAN 19: MAY 5, 2011
Q1: Should South Pole apply more resources or fewer resources to the Gold Standard?
Q2: Do you agree that the Malavalli Biomass Project is additional?
14.42 LECTURE PLAN 21: MAY 12, 2011
Q1: What are the channels through which OPOWERs treatment acts?
Q2: What are the welfare effects of OPOWERs program?
PASTURE 1: CHANNELS
Channels of HER effects:
NATURAL RESOURCE ECONOMICS II
14.42 LECTURE PLAN 17: APRIL 26, 2011
PowerPoint Vignette: Are we running out of natural gas?
o Point out the key roles of substitution (to coal, LNG) and of directed technical change
PASTURE 1: E
NATURAL RESOURCE ECONOMICS
14.42 LECTURE PLAN 16: APRIL 21, 2011
PASTURE 1: OVERVIEW
Taxonomy of resources.
Question: What are examples of depletable, renewable, and expendable resources?
ENVIRONMENTAL REGULATION IN DEVELOPING ECONOMIES
14.42 LECTURE PLAN 13: APRIL 7, 2011
PASTURE 1: AUDITS AND ENFORCEMENT
Begin with Ecuador/Chevron vignette.
Left Board 1: Model 1
The government cannot perfectly monitor, but it can audit. How
VALUATION AND HEDONICS
14.42 LECTURE PLAN 14: APRIL 12, 2011
At beginning: Hand out Odwalla bars
PASTURE 1: OVERVIEW
Question: What is the key feature of an environmental good?
Answer: there is no price
Right Board 1
Say that were drawing MWT
EFFICIENCY AND MARKETS
14.42 LECTURE PLAN 3: FEB 8 2011
Intro: first several ppt slides.
PASTURE 1: CONSUMERS
LEFT BOARD 1: Utility Max and Indifference Curves
Maximize utility from water W and numeraire N (stuff). Budget constraint Y=pWW+pNN