2296 - Resource Economics
Course information
Title
Resource Economics
Course number
2296.21
Academic year
2024-2025
ECTS
10.00
Level
Bachelor
Faculties
History and Social Sciences
Educations
BSc in Economics and Management
Prerequisites
Completed upper secondary education. Competency in intermediate microeconomics is a definite advantage.
Language of instruction
Faroese
Registration
Students on the fifth semester of B.Sc. in Economics and Business Administration apply for the course on Moodle. Applicants for an individual course must apply via the Student Service Center at lss@setur.fo
Beginning date
Tuesday, August 27, 2024
End date
Wednesday, November 27, 2024
Academic content
Purpose
The objective of the course is to provide the students with insights into concepts, theories, and methods within the field of resource economics and give the students ability to use these in practice.
Learning outcomes
When the course is finished, the student should be able to: • Define the concept of “resource rent” and explain the concept’s central position in resource economics. • Define the concept of “common pool” natural resource and explain the challenges these resources present for societies that want to use the resources in a productive fashion that retains as much resource rent as possible. • Understand and explain what kinds of rights and duties are available with respect to framing the use of natural resources, and the role of the government as enforcer of these rights and duties. • Explain, with the use of formal economic models, how firms that use “common pool” natural resources as inputs in their production choose their production plan contingent upon the specific laws, rules, and regulations framing the use of these natural resources. • Characterize, with the use of formal economic models, market equilibria in an industry where firms use “common pool” natural resources as inputs in their production and how the welfare economic characteristics of these equilibria are contingent upon the specific laws, rules, and regulations framing the use of these natural resources. • Analyse the political process which defines rights and duties with respect to “common pool” natural resources, in particular the determinants of the degree to which the process produces laws and regulations which support the retention and desirable distribution of resource rent.
Content
The course considers the management and use of three archtypical “common pool” natural resources by society and firms: 1. Open sea fish resources, 2. Oil resources, and 3. Air and water as sinks for and purifiers of industrial waste. The course considers three fundamental subjects regarding the management and use of “common pool” natural resources by society and firms: 1. The legal framework supporting industrial use of “common pool” natural resources: Laws and regulations, and the implied rights and duties impinging on economic actors, with respect to use of “common pool” natural resources. 2. Maximizing behaviour by firms utilizing “common pool” resources within a given legal framework, and the market equilibria and welfare economic consequences (retention and distribution of resource rent) resulting from this behaviour. 3. The political process, either involving negotiations among immediate group members or lobbying activities that take place at higher levels of government, which determines the legal framework supporting industrial use of “common pool” natural resources.
Learning and teaching approaches
Lectures, group work, exercises and presentations.
Assessment
Assessment method
3 hour written exam Students are required to pass a minimum of two assignments in order to attend the exam.
Examination (internal/external)
External
Grading scale
7-scale
Exam date/dates
The written exam is set for week 51
Deadline for withdrawal from exam
Tuesday, August 27, 2024
Academic responsibility and teachers
Academic responsibility
Hans Ellefsen
Teachers
Hans Ellefsen
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