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Module Title	LM Natural Resource Economics
School	Birmingham Business School
Department	Economics
Module Code	07 40075
Module Lead	David Maddison
Level	Masters Level
Credits	20
Semester	Semester 2
Pre-requisites
Co-requisites
Restrictions	None
Exclusions
Description	All economic activity ultimately depends on the availability of natural resources. In this module, we introduce students to the economics of natural resource. Students are taught optimal control theory, which we then use to analyse the depletion of exhaustible resources, with a particular focus on carbon energy resources. We consider how depletion responds to differences in market structure, the costs of extraction and the taxation of resource rents. Turning to renewable resources, we use optimal control theory to analyse the economic management of fisheries and discuss various approaches to regulating open-access fisheries. We further investigate the economic causes of biodiversity loss and measures to conserve endangered species. Additional topics include the economics of the managed forest, tropical deforestation, climate change as an example of a stock-pollutant problem and the correct measurement of national income when economic activity depends on natural resources.
Learning Outcomes	By the end of the module students should be able to: Explain and appraise the concept of rent and the classical principles surrounding the optimal harvesting and depletion of natural resources Evaluate and apply advanced optimal control theory Appraise the complex effects of government policy attempting to influence unregulated market outcomes Critically formulate economic problems in natural resource economics including in terms of optimal control theory Apply critical thinking, problem-solving and analytical skills to problems in natural resource economics
Assessment
Assessment Methods & Exceptions	Assessment: 1750 word essay (50%). 1.5 hour exam (50%). Reassessment: Resubmission of failed component(s): 1750 word essay (50%). 1.5 hour exam (50%).
Other
Reading List