Prof. Dr. Rudi Kurz Office hours: Wednesday 13:45-15:15 Office: W4.1.02 E-mail:
[email protected] Markets and the Economics of Natural Resources BREM3001 Syllabus Winter Semester 2016/17 Time (room) Tuesday 15:30-17:00 (W1.5.06) Wednesday 15:30-17:00 (W2.3.15) Begin October 4 ECTS-Credits 5 Workload 150 hours: 60 h contact + 90 h reading/exercises/research Level Advanced Prerequisites Semester 1 and 2 completed (not more than 10 credits missing) Accessibility Obligatory for REM (semester 6) and open to international exchange students (ISP) Exam Written test (90 minutes) Objectives Students acquire advanced knowledge, understand and are able to apply instruments. They • understand the role of non-renewable natural resources in the context of sustainable development • are familiar with the economic aspects of resource scarcity and with solutions offered by resource economics • know important resource markets (including recycling and energy markets) and their performance • are able to analyze world resource market and to evaluate trends and fluctuations 2 Contents • Sustainable Development: general concept, rules for non-renewable resources • Market failure (public goods, tragedy of the commons, externalities) • Intertemporal allocation: Hotelling Rule, Hartwick Rule • Economic policy instruments (Pigou tax, tradable permits, Coase Theorem) • Natural resources and (limits to) economic growth, Jevons and Rebound • Accounting problems – beyond GDP • Eco-Efficiency and innovation policy • Energy markets and specifica of the energy sector • World market for natural resources: determinants, trend and volatility of prices • International commodity trading: Physical and derivative markets • Companies’ role and strategies in managing resource scarcity Basic Literature Baker, Robert (2010): The Trade Lifecycle: Behind the Scenes of the Trading Process, Chicester (Wiley) umw5 2013 330 Clark, Ephraim / Lesourd, Jean-Baptiste / Thieblemont, Rene (2001): International Com- modity Trading: Physical and Derivative Markets, Chichester (Wiley) umw5 2013 398 Conrad, Jon M.