Natural Resources as Capital:
Theory and Policy1
Larry Karp
August 2016, copyright
1 This
manuscript benetted from comments by Sangeeta Bansal, Edward Barbier, Ron Gri n, John Hartwick, Beat Hintermann Michael Hoel, Stephen Holland, John Livernois, Je Per
EEP/Econ 102: Natural Resource Economics, Chapter 3
Larry Karp
Larry Karp ()
Chapter 3
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Chapter 3: objectives
Translate techniques and intuition from the two-country trade model
to a two-period resource problem.
Obtain and analyze equilibrium condit
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What are we trying to achieve in this course?
We want to develop the tools that make it possible to think clearly
and precisely about these kinds of questions:
How should society use up (= manage
Chapter 6
Empirics and Hotelling
Objectives
Understand what it means to test the Hotelling model, and the practical
di culties of performing such a test.
Information and skills
Understand the role of models in policy analysis.
Summarize the main empirical
Environmental Economics and Policy/ Econ 102:
Natural Resource Economics
Larry Karp
August , 2017
Larry Karp ()
Chapter 1
August , 2017
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EEP/Econ 102 Natural Resource Economics
Instructor: Professor Karp [email protected]
Your GSIs:
Molly Van Dop: m
Natural Resources as Capital: Chapter 4
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Chapter 4
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"Muddiest concept"
Please take 1 2 minutes to write a few words or a couple of
sentences describing what has been for you the "muddiest concept".
(Do not sign.)
GSI will collect them and review d
Natural Resources as Capital: Chapter 2
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Chapter 2
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Six topics of this chapter
Arbitrage
I discuss arbitrage over space in order to develop intuition for the
dynamic problem.
Comparative statics
Elasticities
Market structure
()
Chapter 2
2 / 25
Si
Natural Resources as Capital, Chapter 3
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Chapter 3
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Chapter 3: objectives
Translate techniques and intuition from the two-country trade model
to a two-period resource problem.
Obtain and analyze equilibrium conditions for competitive and
monopoly
EEP/ECON C102, Section 2
Week of September 9, 2015
This section will go over some basics of microeconomics that will be used in this course.
We will review how to set up a prot maximization problem and solve it under two market
structuresperfect competiti
Comments on In-class Exercises 1 and 2
September 17, 2015
I would like to share with you some suggestions I came up with when grading the rst
two in-class exercises.
1. When you write the prot function of a competitive rm,it is better to write price as
a
EEP/Econ 102: Natural Resource Economics, Chapter 3
Larry Karp
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Chapter 3
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The two-period nonrenewable resources problem
The rm problem is to allocate a xed stock of a resource between
s
two periods (an assumption)
This problem looks ju
Problem set #1, EEP/Econ 102, Fall 2015
Due no later than September 15 at the end of lecture (as a hard copy).
Consult the syllabus for information on problem sets.
Questions based on the Math Review
1. For the function () = 2 + 04 , graph (), 0 (), and 0
EEP/Econ 102: Natural Resource Economics: Chapter 2
Larry Karp
Larry Karp ()
Chapter 2
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Six topics of this chapter
Arbitrage
I discuss arbitrage over space in order to develop intuition for the
dynamic problem
Comparative statics
Elasticities
Market
EEP/ECON C102
Section 1
August 31, 2015
Material: Appendix A (math review)
Derivatives: conceptual1
1. At a point vs. general: Broadly, we think of the derivative of a function as the rate of change
in the value of the function as the independent variable
EEP/ECON C102, Section 1
Week of August 26, 2015
This section reviews some concepts and results from basic calculus. It refreshes your
memory on the maths that is needed for this course. In this course, calculus is mainly
used in optimizationthe derivatio
Preparation for rst in-class exercise
The in-class exercises are intended to give you an incentive to keep up with
the reading, attend lecture, and to provide a low-risk frequent assessment.
In general I do not expect to schedule the in-class exercises, o
EEP/ECON C102
Professor Larry Karp
In-class exercise 1
September 10, 2015
A competive rm has 20 units of coee in Brazil, where it faces inverse demand pB = 15QB .
It faces iceberg transportation costs, b, of sending the coee to the US, where it faces inve
Syllabus EEP/Econ 102, 2017
Lectures: Tues., Thu 3.30 5, Barker 101
Instructor: Professor Karp, 330 Giannini Hall, [email protected]
Office hours: Wednesday 10 - 11 and by appointment. (This time is subject to change) Because it is not
practical to have o
Section 1: Intertemporal Choice & Discounted Utility
ECON 119: Psychology and Economics Fall 2017 GSIs: Peter Jones, Alex Steiny, Tams Btyi
University of California, Berkeley Department of Economics
Todays Agenda
1. Syllabus & Introductions
2. Intertempor
Name:
EEP/ECON C102
Section: Mon a.m. / Mon p.m. / Wed / Fri
Professor Larry Karp
Quiz 2
September 22, 2016
Consider a two-period model with initial stock x; assume that the competitive rm
exhausts the stock and sells a positive amount in both periods. De
Quiz 3 will be held September 29
The quiz will last approximately 10 - 15 minutes. You will not need a
calculator. It will be open book. This quiz will look very much like quiz
#2, except that extraction costs will depend on the stock and the level of
ext
Environmental Economics and Policy 102: Natural
Resource Economics, Chapter 8
Larry Karp
September 2016
Larry Karp ()
Chapter 8: The Green Paradox
September 2016
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Introduction: Chapter 8 The Green Paradox
Well-intentioned policy may have unintended
4.7. TERMS, STUDY QUESTIONS, AND EXERCISES
75
rm and under a monopoly, we can express the equilibrium condition for both
markets in the same manner:
Rent in period 0 (R0 ) equals the present value of the rent in
period 1 (R1 ) plus the cost increase due t
Quiz 2 will be held September 22
The quiz will last approximately 10 - 15 minutes. You will not need a
calculator. It will be open book. All of the practice questions you were given
in preparation for the first quiz (including the question asked in the fi
Preparation for first quiz, September 8
The purpose of the quizzes is to provide feedback for both students and
instructor/GSIs, and to give students an incentive to keep up with the material.
For the first two quizzes I will give you sample questions (or
Quiz 4 will be held October 6
The quiz will last approximately 10 - 15 minutes. The quiz will cover
material through Chapter 7. You will not need a calculator. It will be open
book. All questions in this and in previous prepare fordocuments are fair
game.
EEP/Econ 102: Natural Resource Economics, Chapter 4
Larry Karp
Larry Karp ()
Chapter 4
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Longer term goal
Provide a framework for understanding the incentives operating in
resource markets
to understand how markets work, when they work well
Larry Kar
EEP/Econ 102: Natural Resource Economics: Chapter 2
Larry Karp
Larry Karp ()
Chapter 2
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Six topics of this chapter
Arbitrage
I discuss arbitrage over space in order to develop intuition for the
dynamic problem.
Comparative statics
Elasticities
Marke
EEP/ECON 102, Section 1
Week of August 23, 2017
This section reviews some concepts from basic calculus. It refreshes your memory on the math
needed for this course. This semester, calculus is mainly used in optimization. We regularly derive
first order co
EEP/ECON 102, Section 1: GSI Copy
Week of August 23, 2017
This section reviews some concepts from basic calculus. It refreshes your memory on the math
needed for this course. This semester, calculus is mainly used in optimization. We regularly derive
firs
Preparation for Quiz 2, September 7
The purpose of the quizzes is to provide feedback for both students and
instructor/GSIs, and to give students an incentive to keep up with the material.
The actual quiz will be taken from the sample questions. The quiz