Natural Resource Economics
Chapter 2: The Economic Approach:
Property Rights, Externalities,
and Environmental Problems
o Environmental Economic Policy:
1. Policy objectives (must be identified)
a. Sustainable use
Natural Resource Economics
Chapter 1: Visions of the Future
Environmental and Natural Resource Economics (pages 1-3)
o This branch is the branch that:
Applies economic tools to the study and valuation of natural
Studies human m
Why value the environment?
o Regulatory issues: many federal agencies require benefit/cost analysis for
Federal Energy and Regulatory Commission (FERC)
o Economic Damage Assessment and Environmental Protection
Issues in Net Benefit Estimation
Refers to either the group and/or the geographic scale at which the
benefits and costs are measured.
Absorptive capacity: Ability of the environment to absorb pollutants
How pollutants impact the environment:
Stock Pollutants: Pollutants for which the environment has little or no
Homework #3 AGRB 2020
(covering Lectures #14 to #16)
Due: Wednesday, April 12th
Please answer the following questions (all parts to the question) writing or typing as clearly as
possible. Include your full name, section number / s
AGRB 2020 - Homework #1 Spring 2017
An agribusiness firm may undertake three alternatives:
1. Buy cane sugar and manufacture various sugars and sweets, making a profit of $10
2. Buy wheat and produce bread, rolls, and pastries, making
AGRB 2020 - Homework #2 Spring 2017
If McDonalds launches a successful ad campaign for Big Macs, what will happen to the Big Mac
Demand curve shifts to theright as a result of successful advertising.
What are some other determinan
AGRB 2020 - Quiz #2
1. If own-price elasticity of a good is -1.15, then the demand for that good is said to
2. If the own-price elasticity of a good is -0.55, then a 10% increase in the price leads
to a _5.5_% decrease or increase in the quan
AGRB 2020 - Quiz #1
Hillary has a budget of $800 and Donald has a budget of $1600.
They both like t-shirts and caps. Based on the following
information, complete the following table.
Positive economic analysis focuses on what-is and what-would-happen-if questions and policy issues.
How would consumers and producers respond to a tax increase or a tax decrease?
Normative economic analysis focuses on what-should-be or what ought-to-be qu
Positive vs. Normative
Positive economic analysis focuses on what-is and whatwould-happen-if questions and policy issues.
How would consumers and producers respond to a tax increase or a tax
Normative economic analysis focuses on what-should-be
For a 125 acre straw enterprise many problems can and will occur. Foremost I think the
biggest issue is equipment maintenance due to high temperatures and low moisture in the
fields, which create an enormous amount of
We seek to create an earth friendly environment within our 250 acres, while conducting
an environmentally friendly plan for our 125 acre pasture and hayland, and to grow the
most wholesome soybeans th