Econ 351: Environmental and Natural Resources
Lecture Notes
Instructor: Shawkat Hammoudeh
Textbook: T. Tietenberg, Environmental and Natural Resource
Economics, Addison-Wisely,
1
Chapter 1
Visions of the Future
Course focus:
Survival of the planet. There

LECTURE 4
Chapters 4+5
Firms and government
behavior-Equilibrium
Review of last lecture
Finished describing the consumer
behavior
Summarized that any change that has an
effect of the budget constraint can be
analyzed with the SE and the IE
Those two effec

LECTURE 5
Chapter 5
Equilibrium
And the Laffer Curve
Review of last lecture
Finished describing the behavior of the
firm.
We discussed that firms choice is labor
demand in order to maximize their profits.
The optimal demand of labor is given by
MPNd=w
We

Quiz 8: Solutions
Problem 1. Diagonalize the following matrix if possible:
A=
1 3
.
4 2
Solution. We rst solve the characteristic equation det(A I) = 0:
1
3
= (1 )(2 ) 12 = 2 3 10 = 0.
4
2
The solutions, 1 = 5 and 2 = 2, are the eigenvalues of A. Next, we

Econ 351: Natural Resources & Environmental Economics
Review for the Second Exam
1. State two definitions of sustainability.
a. Fairness to future generation. PV(TNB2) = or > PV(TNB1)
b. Hartwick rule. Total capital stock = physical stock + natural stock

Chapter 06 - Discrete Probability Distributions
Chapter 6
Discrete Probability Distributions
6.1
Example A is a probability distribution because the sum of P(x) is 1 (.8 + .2 = 1) and all
probabilities are nonnegative.
ExamplesB and C are not probability

Chapter 24
Economic Growth:
Theory and Policy
Onceonestartstothinkabout.[differencesingrowthrates
amongcountries],itishardtothinkaboutanythingelse.
ROBERTE.LUCAS,JR.
Three Pillars of Productivity Growth
Growth policy
High sustainable long-run growth
Po