Economics of Natural Resources (075270-SoSe23)

Economics of Natural Resources (M.Sc.)
The lecture delves into the underlying principles of the economics of the natural resources. After gaining an overview of the taxonomy of the natural resources, the students will be made familiar with the basics of the optimal control theory. The lecture contemplates both normative and positive economics of the nonrenewable natural resources such as fossil fuels and non-fuel minerals and renewable natural resources such as fisheries and renewable energy sources. To illustrate the relevance of the individual lecture blocks for the planning and management in the context of the sustainable resource management and environmental policies, each lecture ends with a discussion of a pertinent case study.
Content
Introduction

Taxonomy of natural resources
Nonrenewable resources und intergenerational justice
A Brief Introduction into the Optimal Control Theory
Pricing of Nonrenewable Natural Resources

The Concept of differential rent
Gray’s r-Percentage-Rule
Hotelling’s Rule
The Structure of the Resource Markets

Competitive and monopolistic markets
Oligopoly
Economic behavior of a cartel
Production with Nonrenewable Natural Resources

Efficient Resource Extraction
Optimal resource extraction
-Utilitarian social welfare function
-Rawls criterion
Shift to a Backstop Technology
-Theory
-Case studies (Conventional oil vs shale oil)
Nonrenewable Resources and Recycling

Recycling in the theory of natural resources
Environmental aspects of recycling
Renewable Natural Resources

Gordon-Schaefer Modell
Beverton-Holt-Modell
Resource Revenue Management

Natural resources and economic growth
Hartwick’s rule
Lewis’ dual economy model with extractive sector
The role of institutional quality and EITI
Sovereign stabilization funds and their macroeconomic impact