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Environmental Economics and Policy Making
San Diego State University, College of Extended Studies
June 30 August 31, 2014 GE 0007 Revised 6/22/14
Instructor: Dr. Elizabeth M. DeSouza, Ph.D.
Co-Facilitator: Kathleen Armstrong, GEM
Email: classtalk@feltonbay.com labuelita@sti.net

1. Office Hours: Wednesday evenings 7:00-8:00 pm by e-mail or by appointment.
I. Prerequisites and Requirements
There are no course prerequisites for this class. Environmental Economics and Policy Making is
offered online which offers the advantage of learning anyplace and anytime. Success in a
distance learning course requires:
A computer - PC or Macintosh- with a stable Internet connection. Higher speed Internet
connections (cable modem, DSL) are strongly recommended.
The most current version of the browser Firefox. Download Firefox
http://www.mozilla.org/en-US/firefox/new/
Computer skills - email, surf the Internet, create basic word processor files, use track
changes feature in Word, upload and download documents.
Microsoft Office 2010 or higher (Must include Word and PowerPoint).
A reliable email address that will not change from the beginning until the end of the
semester.
A "technology back-up" plan. Students should plan out an alternative location to do
assignments and quizzes in the event their computer or Internet connection is not
working!
Time. Distance learning courses require as much time as traditional (classroom)
instruction. The primary difference is that online instruction allows flexibility.
Self-motivation. Online students must be "self-starters", and have the ability to work with
minimal supervision. Students who procrastinate are rarely successful in distance
learning courses.
Students are also required to:
Make use of the online course materials available via http://environeconpol.weebly.com/
Access to these materials is available once you have registered for the course. You will
be sent an invitation to join the class.
Participate in all facets of the online course.
Complete readings and assignments by the due dates indicated on the syllabus.
Check email on a daily basis.
Check the course web site several times a week. Information may be updated or
changed due to developments in the field, or for other academic reasons. The student is
responsible for keeping up to date.
At the end of your last course in your green certificate program, you will need to submit
the Certificate Application form which will give us the correct name as it should appear on
your certificate, as well as the mailing address that it should be sent to. This form also
allows you to give us any employer information if you are requesting that we send a copy
to your employer as well. Please print the Certificate Application form which you can find
in Course Resources, complete it, and submit to Yolanda Devlin, Program
Coordinator. You can email it to ydevlin@mail.sdsu.edu or fax it to 619-594-8566.

This information is confidential and proprietary and shall not be disclosed outside of SDSU,
College of Extended Studies without (CES) authorization.
Copyright 2014

2
Certificates will not be mailed out unless this form is submitted. Please let me know if you
have any questions.

Credit will be awarded based on the successful completion of weekly assignments, a term
project, and a final exam. All assignments must be completed by the due dates listed on the
schedule below. Oftentimes, course lectures, reading assignments and/or content may be
revised to better reflect current events, student interests, or subject areas that require additional
discussion. Because of these factors, this syllabus is subject to change. Students must regularly
check their e-mail and the course website for updates to reading materials or assignments.

II. Course Description
Catalog Course Description
Environmental economics can be seen in every government action that pays, punishes, or
prompts us to achieve a common goal. Students will learn how to apply the concepts of
economics to environmental problem-solving and corporate decision-making by engaging a wide
array of issues that affect modern businesses and governments. Sustainable development, water
quality, pollution control, energy efficiency, process improvement, waste management and traffic
control are all influenced by fundamental economic principles. This course uses numerous case
studies to challenge students to discuss, critique and frame modern problems by harnessing the
power of economics.


III. Course Learning Outcomes
This course aims to give you a general understanding of environmental economics principles and
how these can be applied to public policies to promote green objectives and clean-tech
industries. This will enable you to form reasoned arguments and analysis about a broad range of
public policy objectives across normative, strategic, analytical and practical dimensions. Upon
course completion, you should be able to formulate and evaluate:

The common market failures behind environmental problems
The economic arguments for increasing taxes, providing subsidies, or creating price
controls or education campaigns to promote green and clean-tech activities.
Strategic questions about a broad range of policies and program designs and how to
correct or improve policies to obtain intended results.
The advantages and disadvantage of common market solutions to environmental
problems.
Government failures, discounting and general problems with costing environmental
impacts.

Moreover, in the course of learning the concepts and considerations above, you are invited to
formulate your own opinions, critiques, strategies, and analysis through:

Exercises and questions geared to challenge you to strengthen your analytical and
applied problem-solving skills.
Participation in on-line class discussions, where academic engagement will be
encouraged in an environment of mutual respect and insightful discourse. (optional)
Individual and team projects aimed at fostering a creative and collaborative learning
experience.


IV. Required Readings
There is no textbook required for this course. Readings are available on line and as posted to the
http://environeconpol.weebly.com/ site in the Weekly Assignments area.

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The following document will be posted in the weekly Assignments area, Week 4, and in the
Course Resources. It provides a brief explanation of market principles and policy tools that will be
covered in the course.

United States Environmental Protection Agency, Office of the Administrator EPA Guidelines for
Preparing Economic Analyses, September 2000. EPA 240-R-00-003
http://yosemite.epa.gov/ee/epa/eed.nsf/Webpages/Guidelines.html

See specific reading assignments and complete reading list below in Section IX.

V. Additional Readings
Optional readings for students who wish to study course topics in greater detail:

Speth, James Gustave, The Bridge at the Edge of the World: Capitalism, the Environment, and
Crossing from Crisis to Sustainability. Yale University Press (March 10, 2009).

Percival, Robert V. and Dorothy C. Alevizatos, eds. Law and the Environment. Temple University
Press 1997.

Cairncross, Frances, Costing the Earth: The Challenge for Governments, the Opportunities for
Business. Harvard Business Press, 1993.

Turner, R. Kerry, David Pearce and Ian Batement, Environmental Economics: An
Elementary Introduction. John Hopkins University Press 1993.

VI. Weekly Procedure
Please check the schedule below and updates on http://environeconpol.weebly.com/ in the
Announcement folder at least once a week. Check your e-mail or the Announcement board daily
for important tips, changes, clarifications to your e-mails to instructors, or updates. For each
week, you will complete six main tasks:

1) Review topics and tasks for the week.
2) Check http://environeconpol.weebly.com/ for links to reading assignments.
3) View the weekly lecture and presentation materials.
4) Complete assignments as described in the weekly class assignments.

Expect heavier reading and comprehension loads in early weeks and increasing analytical and
writing requirements as the term progresses.

STUDENT BIO
To help us get to know one another, please post your bio along with a photo and some highlights
about your career trajectory, interests and goals.

THE LECTURE
Lectures will be available in an MP4 format in the weekly documents folder. Each lecture will
present the main topics outlined below and discuss conceptual frameworks or key points to guide
your understanding of the reading materials. Lectures are designed to assist you in
comprehending and critically evaluating the reading materials, while preparing you to design your
own policy proposal. Because lectures are not intended to replace reading the assigned
materials, you should expect test and exam questions to span reading assignments, videos, and
lecture content.

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PARTICIPATION/QUESTIONS
Use e-mail communication when you need assistance and spend time to digest, synthesize and
share ideas and solutions to assigned problem sets. Your assignments will begin with simple
tasks like posting a problem and a solution, or reviewing and commenting on other posts. As you
become more familiar with economic concepts and public policy tools, you will be asked to apply
these tools to your discussion analyses. Course exercises will also be posted to
http://environeconpol.weebly.com/ for group evaluation and peer review.

TIPS
Ask questions! The power of on-line education is amplified by every question asked and
answered on the discussion board. If you are having trouble with a topic, you may submit
it for group input. The instructor will evaluate group responses periodically and offer
pointers or clarifications if needed. Your comments and questions can assist in creating
a more enjoyable and productive class.
Contribute! Even if you are not sure of your answer, throw it out there, it may spark lively
debate or comments and eventually, with everyone working together, it may grow into
something brilliant and innovative.
Be respectful, courteous and constructive. This is a collaborative process and your peers
-every one of themdeserves to be treated as if they are your client.
Rants dont qualify as constructive participation. Try to post content, analysis and
commentary that have objective or analytical value (not just your raw opinion or talking
points from the political left or right).
Dont Scream. Just a quick reminder for those with limited e-mail skills ALL CAPS is
screaming. Use this sparingly if at all.


ASSIGNMENTS AND FINAL EXAM
Weekly assignments will include reading assignments and web tutorials, web research, assigned
videos, and specific discussion questions. See the schedule matrix below for more detail. Most
assignments can be completed in sixty minutes or less in addition to the time required to read the
materials and review the lecture. Specific assignments will be posted to the Assignments on
http://environeconpol.weebly.com/ Weekly assignments requiring a response from you
should be submitted via e-mail to the Instructor and Co-facilitator at:

Email: classtalk@feltonbay.com and labuelita@sti.net


To encourage creativity and collaboration, the term project requirement can be met through
individual or group projects and can include written proposals, presentations (PowerPoint),
websites or video submittals. See Week 8 in the matrix below for details. Guidelines for these
projects are posted on http://environeconpol.weebly.com/ under Assignments.

The final exam is not a collaborative project. These should be taken individually without
consulting classmates or sharing answers. You will be provided with a final exam summary with
possible questions for the final exam. You will have one hour to complete the final exam. Study
questions for the final exam will be posted to Assignments on http://environeconpol.weebly.com/
and collaborative problem solving and study groups are encouraged prior to the final exam. For
the final exam, you may refer to your study notes but should take the test independently.

The final exam will be primarily multiple choice and may include short answers or an essay
component. The best way to prepare for exams is to read the assigned materials, participate in
on-line discussions and perform the exercises associated with each course module. Students
who actively follow the course assignments, participate in discussion, and formulate and bring
their own questions or insights will not only accumulate participation points, but will also find the

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College of Extended Studies without (CES) authorization.
Copyright 2014

5
material more engaging. Your instructor will send you a link to the final exam privately which will
be located at Quiz Star: http://quizstar.4teachers.org/


A tip for reading economics and policy materials: Read actively. Ask questions in the margins or
in a notebook, and take note of concepts and arguments. Before reading a chapter or article,
scan the material for its layout, headings, and format, so that you have a mental map of the
contents as a reference guide. Mark pages using post-it notes or flags so that you can return to
the key points quickly at a later date. Or use Adobe Reader comments and tools to mark and
highlight key concepts. Training yourself to recognize the key points is an important skill in policy
analysis.

ACADEMIC DISHONESTY AND PLAGIARISM POLICIES
Plagiarism and cheating are serious offenses and will result in a failing grade. From the
Statement of Student Rights and Responsibilities:

Examples of plagiarism include any attempt to take credit for work that is not your own, such as
using direct quotes from an author without using quotation marks or indentation in a paper,
paraphrasing work that is not your own without giving credit to the original source of the idea, or
failing to properly cite all sources in the body of your work.

See Understanding Plagiarism and the Plagiarism Tutorial under Course Resources
on http://environeconpol.weebly.com/ for more information.

LATE ASSIGNMENTS, CORRUPT FILES, OR PROBLEMATIC FILE FORMATS
Assignments should be e-mailed to: classtalk@feltonbay.com and labuelita@sti.net
on or before the due dates. Backup copies of assignments will also be accepted by e-mail to
classtalk@feltonbay.com or fax to (619) 229-8319. Late penalties of 10% after midnight on the
due date and 5% per day thereafter will be applied to assignments turned in after the due date.
Documents should be saved as Word documents (.doc), Excel documents (.xls), Portable
Document Files (.pdf) or PowerPoint presentations (.ppt). Videos can be posted to YouTube and
link posted on the class website and e-mailed. Original websites can be built and hosted on
Wix.com (free, no URL required) and link posted on the website and e-mailed. Open Office
standard formats also acceptable. Never submit documents in Microsoft Works format. Files that
are corrupted or cannot be opened using Office 2003 or 2007 will be subject to late penalties.


This information is confidential and proprietary and shall not be disclosed outside of SDSU,
College of Extended Studies without (CES) authorization.
Copyright 2014

6
VII. Schedule 2014
Week &
Date
Topic Tasks Deliverables (all due by the
end of the week, midnight
PST)
Week 1
June 30-
July 6
Introduction

1) Requirements
2) Resources &
Links
3) Defining
Sustainability
1) Post your bio under
Announcements on the Weebly
website.
2) Review Week 1 lecture and
assigned reading.
3) Surf: recommended resources
and links and add to your
favorites list.
4) Review course requirements.
5) View classmate bios
6) Reading and Video Assignments
7) Assignment: How do you define
sustainability and sustainable
development?
8) Read Understanding Plagiarism
1) Exercise 1:
Post Student Bio Blog.
Include your name, e-mail
address and career
trajectory (where youve
been and where you hope
to be), job title and field,
degrees held, short- and
long-range goals.
Include a short list of your
favorite activities, things
you know most about, and
what you are most
interested in learning
about.
2) Exercise 2:
Complete assignment.


Week 2
July 7-13
Defining
Sustainable
Development




1) Study Week 2 lecture and
assigned readings and videos.

1) Exercise 3: Review Week
1 and Week 2 materials
thoroughly.


Week 3
July 14-20
Economic
Growth and the
Environment






1) Study Week 3 lecture and
assigned readings and videos.
2) Complete assignment on the
Tragedy of the Commons.
1) Exercise 4: Complete
assignment.

Week 4
July 21-27
Market
Assumptions
and Failures



1) Study Week 4 lecture and
assigned readings and videos.
2) Complete assignment (on market
failures).
1) Exercise 5: Complete
assignment.



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Copyright 2014

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Week &
Date
Topic Tasks Deliverables
Week 5
July 28
Aug.3
Appropriate
Tools for
Correcting
Market Failures



1) Study Week 5 lecture and
assigned readings and videos.
2) Complete assignment (policy
pyramid).





1) Exercise 6: Complete
assignment.

Week 6
Aug. 4-10
Information
Requirements,
Risks and
Uncertainties






1) Study Week 6 lecture and
assigned readings and videos.
2) Submit three-page summary and
outline of term project on
discussion board Each project
should start a new discussion
thread. Title the thread with the
project name and your name.

1) Exercise 7 Term Project
Outline and Discussion:
Submit outline of term
project including a public
policy problem and how to
approach solving it, based
on market diagnostics.
Post on Discussion Board.

Week 7
Aug. 11-17
Benefit-Cost
Analysis
1) Study Week 7 lecture and
assigned readings and videos.
2) Collaborate with other students to
fine-tune and improve their
proposals.








1) Exercise 8: Post a two by
two decision matrix on
your policy.



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Copyright 2014

8
Week &
Date
Topic Tasks Deliverables
Week 8
Aug. 18-24
Costing the
Environment and
the Future
1) Study Week 8 lecture and
assigned readings and videos.
2) Complete assignment on grant
and incentive databases.
3) Check grants.gov and CEC
ARRA funding site for funding
opportunities for your proposal.
4) Expand summary into a 10-15
page (double-spaced) draft
proposal or 20 page PowerPoint
or 20 minute video. Post video to
YouTube and submit link to
discussion board. Upload and
post presentations or proposals.
1) Term Project: Develop and
submit a proposal,
presentation, website or
video for your project.
Include discussion points
on rationale, market
failure, expected benefits
and costs, distributional
effects and more from the
EPA Guidelines document
and OMB documents. Post

Week 9
Aug. 25-
Aug. 31
A Fundamentally
New Era
1) Complete Final Exam Review
Questions.
2) Study Week 9 lecture and
assigned readings and videos.
3) Prepare for Final Exam.
4) Provide classmates with feedback
on their proposals.
5) Apply policy tools to suggest
qualitative improvements in
delivery strategy or measure
portfolio.
6) Complete assignments above in
4) and 5)

1) Exercise 10: Complete
assignments.
2) Take final exam.
Term Projects DUE, Aug. 24, 2013 by 12:00 am (PST). Post on Board.

Final Exam DUE by Aug. 31, 2013 12:00 am (PST).

VIII. Grading
Assignments Points Possible
Exercises and Assignments See Description of Course
Assignments for point detail.

40

5 extra credit
Term Project 35
Final Exam

Total
25

105 points

Note: Please see detailed course assignments under Weekly Schedule. These will be posted
with each weeks course lecture. The above schedule and assignments are tentative and subject
to change. It is the students responsibility to check Weekly Documents and Announcements for
updates to curriculum or assignments.
Grades: 90 105 = Excellent, 80 89 = Above Average 70 79 = Average 60 69 =
Marginal. You must complete at least 60 points to pass this course with credit.

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9
IX. Assigned Readings
Week Assigned Readings (Assigned Videos can be found in Weekly Documents)
Week 1

Course Overview
The Green Economy
Toffel, Michael, Sustainability at http://www.eoearth.org/article/Sustainability

Week 2

Week 2 Defining Sustainable Development
This segment reviews competing definitions of sustainable development and their
implications for environmental stewardship and the economy, both present and future.

EPA Sustainability Research Strategy (2007) pp. 6-8 and 11-45 at
http://epa.gov/sciencematters/april2011/pdf/EPA-12057_SRS_4.pdf


Week 3

Week 3 Economic Growth & the Environment
What are the trade-offs between economic growth and the environment and how does
population growth affect both? This segment explores historical growth rates and the link
between economics and the environment.

Goodwin, Neva R., Julie A. Nelson and Jonathan M. Harris, Economic Growth at:
http://www.eoearth.org/article/Economic_growth

Goodwin, Neva R, Julie A Nelson and Jonathan M Harris, Patterns of economic growth and
development at:
http://www.eoearth.org/article/Patterns_of_economic_growth_and_development

Costanza, Robert, Toward an ecological economy at:
http://www.eoearth.org/article/Toward_an_ecological_economy

US Dept of Energy, EERE, Energy Intensity Indicators in the US
http://www1.eere.energy.gov/ba/pba/intensityindicators/total_energy.html

Hardin, Garrett, The Tragedy of the Commons Science. 1968.
http://www.garretthardinsociety.org/articles/art_tragedy_of_the_commons.html


Week 4

Week 4 Market Assumptions and Failures
This segment introduces the concept of the perfect market and the assumptions behind it,
quickly moving to common market failures, government failures, and their origins

Nadeau, Robert Environmental Economics at
http://www.eoearth.org/article/Environmental_and_ecological_economics

Executive Order 12866. October 4, 1993
http://www.archives.gov/federal-register/executive-orders/pdf/12866.pdf

Executive Office of the President Memorandum M-09-13 (Reinstatement of Executive
Order 12866.)
http://www.whitehouse.gov/sites/default/files/omb/assets/memoranda_fy2009/m09-
13.pdf

OMB Circular A-4, Regulatory Analysis. September 17, 2003
http://www.whitehouse.gov/omb/memoranda_m03-21



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Week 5

Week 5 Appropriate Tools for Correcting Market Failures
This segment covers the policy tool kit, how these tools can be applied to correct market
failures, and the advantages and drawbacks of each.

National Center for Environmental Economics, Guidelines for Preparing Economic Analyses
(background information on the Guidelines, what, why, topics, purpose, how produced)
http://yosemite.epa.gov/ee/epa/eed.nsf/Webpages/Guidelines.html

US Environmental Protection Agency. Guidelines for Preparing Economic Analyses.
September 2000. Chapter 4
http://yosemite.epa.gov/ee/epa/eed.nsf/Webpages/Guidelines.html
(scroll down the page to Chapter 4 .pdf file)

U.S. Office of Management and Budget. 2009 Report to Congress on the Benefits and
Costs of Federal Regulations and Unfunded Mandates on State, Local, and Tribal
Entities. Read pages 3-4, 24-44, 68-74.
http://www.whitehouse.gov/omb/assets/legislative_reports/2009_final_BC_Report_0127
2010.pdf

Week 6

Week 6 Information Requirements, Risks and Uncertainties
Here we look at the information requirements of policy tools and how economic models deal
with risk and uncertainty. Can risk and uncertainty be adequately modeled and at what cost?
Or are we forced to choose policies that mitigate risk by requiring minimal information?

US Environmental Protection Agency. Guidelines for Preparing Economic Analyses.
September 2000. Chapter 5 Economic Analysis, Ch 7- 8 Benefits and Social Costs.
http://yosemite.epa.gov/ee/epa/eed.nsf/Webpages/Guidelines.html
(scroll down the page and go to Chapters 5, 7 and 8 .pdf files)

Optional Readings (not required):
Executive Office of the President, OMB, Memorandum M-07-24. September 19, 2007
http://www.whitehouse.gov/sites/default/files/omb/assets/omb/memoranda/fy2007/m07-
24.pdf

Executive Office of the President, OMB Memorandum. May 30, 2003. Benefit-Cost
Methods and Lifesaving Rules.
http://www.whitehouse.gov/sites/default/files/omb/inforeg/pmc_benefit_cost_memo.pdf


Week 7

Week 7 Benefit-Cost Analysis
This week pulls together the concepts learned in Week 6 with distributional analyses and
decision making. How do you model benefits and costs of a proposed policy?

US Environmental Protection Agency. Guidelines for Preparing Economic Analyses.
September 2000. Chapter 9 Distributional Analyses and 10 Decision Making
http://yosemite.epa.gov/ee/epa/eed.nsf/Webpages/Guidelines.html
(scroll down the page and go to Chapter 9 and Chapter 10 .pdf files)



Week 8

Week 8 Costing the Environment and the Future
This segment looks at methods for evaluating the costs of action or inaction with respect to
environmental stewardship, green and clean-tech policies, and pollution controls, as well as
discount rates and their effects on cost-benefit analysis.


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US Environmental Protection Agency. Guidelines for Preparing Economic Analyses.
September 2000. Chapter 6 Social Discounting
http://yosemite.epa.gov/ee/epa/eed.nsf/Webpages/Guidelines.html
(scroll down the page and go to Chapter 6 .pdf file)
Week 9

Week 9 A Fundamentally New Era
No reading assignment, but be sure to watch the video.