ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS

Study Guide II

Chapter 11

1.  Be able to compare global energy consumption with U.S. energy consumption in terms of the three main fossil fuels

2.  Know the energy sources that have the biggest and the smallest net energy ratios

3.  Know the primary fuel source for each of the use sectors for energy

4.  Show graphically what the Hubbert Curve says about the extraction of a nonrenewable resource

5.  Be able to compare the three main fossils fuels in terms of availability and environmental impacts

6.  Know how the issues of availability and intermittency impact renewable energy sources

8.  Know the different approaches to subsidies

9.  Show graphically the impact of the negative externalities generated by fossil fuels

10.  Know the policies that can be used to move from fossil fuels to renewable energy sources

Recommended problem:  None

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Chapter 18

1.  Know what is meant by maximum sustainable yield

2.  Show graphically how the total population of a fish species can change over time

3.  Show graphically how the annual growth rate of fish can fluctuate over time

4.  Show graphically how the optimum amount of fishing effort can be determined on a total basis

5.  Show graphically how the optimum amount of fishing effort can be determined on a per unit basis

6.  Know how fisheries are classified and the trends for each classification over time

7.  Show graphically how using fishing licenses can be used to achieve the efficient level of fishing effort

8.  Know the trends and issues with respect to aquaculture

Recommended problem:  Exercise

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Chapter 19

1.  Show graphically how the volume of a forest grows over time

2.  Be able to determine whether to engage in sustainable management or clear cutting a forest

3.  Show graphically how the interest rate affects the harvest decision

4.  Show graphically how the optimum rotation is determined if the goal is to maximize revenue from selling wood

5.  Show graphically how the optimum rotation is determined if the goal is to maximize profit

6.  Show graphically how the optimum rotation is affected by changes in the interest rate

7.  Show graphically how the land area covered by forests is affected when natural forests are cut down and replaced with planted forests

8.  Know the regions of the world where there is the biggest loss of forests and the biggest gains

9.  Know the types of forests that are increasing and types that are decreasing and the impact of that on biodiversity

10.  Know the supply side policies that can be used to reduce global deforestation

11.  Show graphically how payments for ecosystem services (PES) can be used to promote sustainable management practices

12.  Know the demand side policies that can be used to reduce global deforestation

Recommended problem:  Exercise

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Chapter 20

1.  Know the different classifications of water scarcity

2.  Know what is meant by virtual water and virtual water trade

3.  Know the methods of increasing the water supply and the drawbacks of each

4.  Know the non-conservation methods of managing water demand

5.  Know the nonprice approaches to water conservation

6.  Show graphically how average cost pricing of water compares to the socially optimal level of water usage and pricing

7.  Show graphically how groundwater should be allocated between two generations

8.  Show graphically the welfare impacts of current water pricing, including ignoring externalities and subsidizing water use

9.  Know the different pricing structures for water and their impact on conservation

10.  Know the difference between Riparian water rights and prior appropriation water rights

Recommended problem:  None