EEP 102/Econ 102
Lecture Notes: Land and Water Resources
Prof. Dave Sunding 326 Giannini Hall 2-8229 [email protected]
1. Economics of Land Use and Land Rent Concept of Economic Rent
Prior to the Industrial Revolution, land represente
Notes on the Economics of Land Use
Susan E. Stratton
1
Land Rent
The key concept for land rent is tied to scarcity. Since land is scarce, the owner of the land can claim the economic value of that scarce resource. In our basic model, land is the o
Empirical Evidence
for the Optimal
Depletion Model
Following Miller and Upton (1985), let the
present value of a resource deposit be
T
( pt c )
V =
q
(1)
tt
t =0 (1 + r )
where c = constant marginal and average cost
Substituting ( p0 c)(1 + r ) t for ( pt
Optimal Depletion:
Some Examples
1. Base Case
p
Given qt = 10 pt
t = 0,1
10
MCt = 2
q0 + q1 = 10
r = .1
2
0
8
10 q
Equilibrium Condition
p1 MC1
p0 MC0 =
1+ r
From demand equation
10 q1 MC1
10 q0 MC0 =
1+ r
Substituting for MC and r
10 q1 2
10 q0 2 =
1.1
8
Optimal Depletion:
Concepts and Derivations
Outlines
1.
2.
3.
4.
Basic Concepts and an Informal
Derivation
Formal Derivation and the Welfare
Theorem
Assumptions Underlying the Welfare
Theorem
Concluding Remarks
Basic Concepts and an Informal
Derivation
Ho
A Guide to Problem-Solving for the Second Half of EEP/ECON 102
Susan E. Stratton December 3, 2007
We have looked at several different types of problems in the second half of the course. Many of these problems involve multiple steps. These notes are i
Notes on Lagrange Multipliers
Susan Stratton September 5, 2007
1
Preliminary Concepts/Review
Section 1 is here for reference only. We will NOT be going over this material in section.
1.1
Unconstrained Optimization of One Variable
f (x) = -x2 + 1
A Three-Period Groundwater Model
Susan E. Stratton
These notes develop a three-period groundwater model. I strongly recommend trying to work this out yourself before looking at these notes. In other words, use these notes as a guide if you get stuck
Section Notes (Friday 10/5 and Monday 10/8)
1
Timber Problem
Review the relationship between Q (t)vs t and Q (t)vs t. Let's try to match up points by joining the graphs up vertically. The relationships between Q (t), Q (t) ,and Figure 1: Forest Re
Timber Harvesting
Contents: General Overview Differences Between Issues of Forestry and Fisheries The Economic Decision to Harvest a Stand The Case of an Infinite Forest Rotation Management of Forest Resources Factors Affecting Forest Resources' Dyna
Renewable Resources and Fisheries
Contents: General Overview A Biomedical Model of a Fishery Optimal Fish Harvest in Steady-State with Interest Rate of Zero Open Access and Competitive Behavior Renewable Resources Management in Steady State Open Acce
Tools for Dynamic Analysis
Contents: General Overview Key Element of Dynamics: Interest Rate The Components of Interest Rates Discounting Uncertainty and Interest Rates Benefit-Cost Analysis
General Overview Natural Resource Economics addresses the
Natural Resources and Dynamic Systems
Contents: General Overview Key Terms and Components of Dynamic Systems Example of a Dynamic System Dynamic Models of Nonrenewable Resources Dynamic Efficiency: The Two Period Case
General Overview Resource Econo
Section Notes
Susan E. Stratton
1
Cost of housing regulations
B (H) gives us the benefit of housing C (H) gives us the cost of housing L units of land available units of land needed per hous All houses are identical. All land is controlled b
Introduction:
The Roots of Resource Economics
Why study environmental and resource
economics? Because we want to know what
economic theory and related empirical findings
can tell us about a variety of interesting and
important issues in this area.
Some cu