paper fix

Spring 2020

EC 230: Special Topics in Environmental Economics Department of Economics, University of Vermont

Donna Ramirez Harrington

([email protected])

COURSE SYLLABUS

Class Hours 8:30-9:20 am MWF Location Lafayette L200

Office Hours 12-1pm M, 1-2pm W or by appointment Location 231 Old Mill

Prerequisites EC 170, EC 171 and EC 172

Course Objectives

1. To describe the market failure that arises as a result of environmental externalities and apply different economic models to asses and compare different environmental policy instrument (standards, taxes, permits)

using various criteria: efficiency, equity cost-effectiveness, enforceability, dynamic incentives.

2. To learn some fundamental tools and apply basic methods of research to undertake research in environmental economics.

3. To understand real world applications of these policy instruments and asses the features that influenced successes and challenges

4. To examine the political economy of environmental policy instrument choice and implementation; describe and differentiate between different theories of regulation as applied to environmental policy; to test the

different theories of regulation using real world data

5. To develop an understanding of the relationship between environmental quality and economic growth; examine the theory for why the can be a positive or negative relationship; develop hypotheses about the

relationship and use real world data to test the relationship

6. To estimate benefits from environmental policy using one specific valuation technique (travel cost approach); assess its strengths and shortcomings;

Instruction Materials and Learning Strategies Journal Articles are all posted on Bb – See course outline

 Guide questions for each paper will be distributed to help you with the structure of each assigned reading. The empirical ones that involve econometrics are a bit more challenging.

 Note that there may be a pop quiz about the assigned reading on the day each is scheduled to be discussed in class. So be prepared to come to class with your notes on those readings. During the 5-8 minute pop quiz, I

will allow you to look at your notes but I will NOT allow a copy of the paper. On other times, there will be no

pop quiz but you will be required to submit as a summary of the paper or answers to the guide questions.

 After the pop quiz, class discussion follows. In a 50 minute class, the class time is devoted to filling in the details about the paper that are not necessarily covered by the guide questions.

Textbooks: Only selected chapters are assigned - either posted on Bb or on Course Reserve (CR)

 GLS 2015. Austan Goolsbee, Steven Levitt, Chad Syverson Microeconomics 2nd ed , Chapter 17.

 FF Barry Field and Martha K. Field Environmental Economics: An Introduction, The McGraw-Hill, selected chapters- 7th ed

2

Course Outline: Topics and Reading List I. MARKET MODELS TO ANALYZE ENVIRONMENTAL ISSUES (3 weeks)

A. Economic Theory 1 (Market Model)

How do we use and apply market models to (a) understand and (b) solve environmental problems? How does

competitive market equilibrium differ from allocative efficient solution when we have environmental

problems?

GLS Chapter 17: Externalities, Property Rights [Bb]

Adam B. Jaffe, Richard G. Newell and Robert N. Stavins, “A tale of two market failures: Technology and

environmental policy,” Ecological Economics, Volume 54, Issues 2–3, 1 August 2005, Pages 164-174

B. Economic Theory 2 (Modified Market Model: MD-MAC Model)

How do we adapt the market model and focus on pollution (not output) as the variable of interest? How do

we compare policy instruments using this model in terms of (a) distributional impacts and (b) efficiency

under certainty and uncertainty?

FF Chapter 5

Instrument choice under certainty:

Don Fullerton. (2001) “A Framework to Compare Environmental Policies” Southern Economic Journal

Vol. 68, No. 2, pp. 224-248

*Lawrence H. Goulder, Ian W. H. Parry, (2008) Instrument Choice in Environmental Policy, Review of

Environmental Economics and Policy, Volume 2, Issue 2, Pages 152–174,

Incentive for innovation:

Milliman, S.R. and R. Prince (1989) “Firm incentives to promote technological change in pollution

control,” Journal of Environmental Economics and Management, 17; 247-265.

Instruments choice under uncertainty:

GLS Chapter 17, pp 668-671 sections on efficient level of pollution and price vs quantity mechanisms

* Sterner, T. (2003) “Role of Uncertainty and Information Asymmetry” In Policy Instruments for

Environmental & Natural Resource Management, Ch13, RFF Press

=============================== QUIZ 1 (IN-CLASS) ================================

II. RESEARCH METHODS AND INTRO TO LABS (1 week)

How do we undertake research in environmental economics? How do we test economic theory using data? How

do we effectively read academic journal articles? What resources are available to help us conduct research?

A. OLS LAB

What is ordinary least squares and how do we implement it using Excel? How can we use it to characterize a

demand curve and production function?

Boardman Appendix to Chapter 12

Extra Handouts and Links posted on Bb

LAB #1 (Data and handouts will be provided)

B. READING LAB

How do we effectively summarize a paper? How do we find the supporting evidence within the paper for the

conclusions? How do we interpret the tables? How do we relate those results back t the objectives?

Foulon, J. P. Lanoie and B. Laplante (2002). “Incentives for Pollution Control: Regulation or Information?”

Journal of Environmental Economics and Management, 44(1): 169–187.

C. *UVM LIBRARY, AND RESOURCES LAB

What resources do we have to do research in environmental economics? (Journal articles, books, data, etc)

Visit from Liaison Librarian Scott Schaffer (Maybe staff from Writing Center as well)

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III. ENVIRONMENTAL POLICY INSTRUMENTS

A. Different Types (3 weeks)

How have policy instruments been implemented in the US or Canada? What design features made them

effective? How do we use our models in Module 1 to analyze these instruments? How can we use these

papers to motivate a term paper/research project/thesis? How can we use these papers to assess current

events related to US environmental policy?

Standards and the Rebound Effect from Energy Efficiency Policy

+ Meyer, R, “The Trump Administration Flunked Its Math Homework,” The Atlantic Monthly, 31 October 2018,

https://www.theatlantic.com/science/archive/2018/10/trumps-clean-car-rollback-is-riddled-with-math-errors-

clouding-its-legal-future/574249/

*Portney, P., I. Parry, H. Gruenspecht and W. Harrington (2003). “Policy Watch: The Economics of Fuel Economy

Standards” Journal of Economic Perspectives, 17(4): 203-217.

Kenneth Gillingham, David Rapson, Gernot Wagner, The Rebound Effect and Energy Efficiency Policy,

Review of Environmental Economics and Policy, Volume 10, Issue 1, Winter 2016, Pages 68–88.

Taxes and the British Columbia Carbon Tax

+Porter, E. “Does a Carbon Tax Work? Ask British Columbia,” The New York Times, 1 March 2016,

https://www.nytimes.com/2016/03/02/business/does-a-carbon-tax-work-ask-british-columbia.html

*Murray, B.C. and N. Rivers, (2015), British Columbia’s Revenue-Neutral Carbon Tax: A Review of the Latest

“Grand Experiment” in Environmental Policy,” Nicholas Institute Working Paper 15-04, Duke University.

Rivers, N. and Schaufele, B. (2015) Salience of carbon taxes in the gasoline market, Journal of

Environmental Economics and Management, 74: pp 23-36.

Tradable Permits and Lessons from Three Decades

+ Kasler, D. “Nearly $1 billion in pollution permits fly off shelf in California auction,” Capitol Alert , 22 August

2017, https://www.sacbee.com/news/politics-government/capitol-alert/article168702607.html

Richard Schmalensee, Robert N. Stavins, Lessons Learned from Three Decades of Experience with Cap and Trade,

Review of Environmental Economics and Policy, Volume 11, Issue 1, Winter 2017, Pages 59–79.

Information Disclosure and Decentralized Approaches

Christensen, D, “UMass researchers compile lists of 100 worst polluters,” Daily Hampshire Gazette, 2 August 2019,

https://www.gazettenet.com/UMass-researchers-list-country-s-top-water-air-greenhouse-gas-polluters-

27421770

*Tietenberg, T. (1998). “Disclosure Strategies for Pollution Control, “Environmental and Resource Economics

11(3–4): 587–602, 1998.

Kotchen , Matthew J, Voluntary- and Information-Based Approaches to Environmental Management: A Public

Economics Perspective, Review of Environmental Economics and Policy, Volume 7, Issue 2, Summer 2013,

Pages 276–295.

=============================== QUIZ 2 (IN-CLASS)=================================

B. Comparison of Instruments (2 weeks)

For environmental problems that have been addressed using multiple policies, how have these instruments

fared relative to each other? For the case of climate change, what factors need to be taken into account when

deciding between policy instruments?

*Taxes vs Subsidies vs Standards

Jaffe, A. and R.N. Stavins (1995). “Dynamic incentives of environmental regulation: The effects of alternative

policy instruments on technology diffusion.” Journal of Environmental Economics and Management, 29(3),

1995, S43-63.

Regulation versus Information (Reading lab)

Foulon, J. P. Lanoie and B. Laplante (2002). “Incentives for Pollution Control: Regulation or Information?” Journal

of Environmental Economics and Management, 44(1): 169–187.

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Taxes versus Permits (Important for Position Paper - Quiz 3):

Robert W. Hahn, “Greenhouse Gas Auctions and Taxes: Some Political Economy Considerations,” (2009)

Review of Environmental Economics and Policy, 3(2):167–188.

Metcalf, G. (2009). “Designing a Carbon Tax to Reduce U.S. Greenhouse Gas Emissions,” Review of

Environmental Economics and Policy, 3(1): 63-83.

Keohane, N. (2009). “Cap and Trade, Rehabilitated: Using Tradable Permits to Control US Greenhouse Gases,”

Review of Environmental Economics and Policy, 3(1): 42-62.

======================= QUIZ 3 (TAKE-HOME - POSITION PAPER) ======================

IV. ENVIRONMENTAL REGULATION AND INNOVATION (3 weeks)

Theory of Environmental Regulation

What factors does a regulator consider when targeting firms for regulation and enforcement? How do different

theories of regulation compare? Be able to define and differentiate the economic (positive) theory vs public

interest (normative) theory and abatement cost theory.

Dion, C, P. Lanoie and B. Laplante (1998). “Monitoring of Pollution, Do Local Conditions Matter?” Journal of

Regulat ory Economics. 13: 5-18.

Shadbegian, R. and A. Wolverton (2010), “Location Decisions of U.S. Polluting Plants: Theory, Empirical

Evidence, and Consequences,” International Review of Environmental & Resource Economics, 4(1), 1-49.

LAB #2 (Data and handouts will be provided)

Porter Hypothesis: Environmental Regulation, Competitiveness and Innovation

What is the Potter Hypothesis? How does regulation affect a firm’s innovativeness and competitiveness?

*Carraro, C., .E.De Cian, L. Nicita, E. Massetti and E Verdolini, (2010), “Environmental Policy and Technical

Change: A Survey,” International Review of Environmental and Resource Economics, 2010, 4: 163–219

Stefan Ambec, Mark A. Cohen, Stewart Elgie, Paul Lanoie, (2013) The Porter Hypothesis at 20: Can Environmental

Regulation Enhance Innovation and Competitiveness?, Review of Environmental Economics and Policy, 7(1):2–

22.

Antoine Dechezleprêtre, Misato Sato, (2017) The Impacts of Environmental Regulations on Competitiveness,

Review of Environmental Economics and Policy, 11(2): 183–206.

LAB #3 (Data and handouts will be provided)

=============================== QUIZ 4 (IN-CLASS) ================================

V. EKC: ENVIRONMENT, DEVELOPMENT AND TRADE (2 weeks)

How does pollution vary with economic growth/development? What factors influence the nature of this

relationship? What is the role of environmental policy, trade and trade policy in this relationship?

Pugel Chapter 13 [Bb]

Richard T. Carson, The Environmental Kuznets Curve: Seeking Empirical Regularity and Theoretical Structure,

(2010) Review of Environmental Economics and Policy, Volume 4, Issue 1, Pages 3–23,

Dasgupta, S. B. Laplante, H. Wang and D. Wheeler (2002) “Confronting the Environmental Kuznets Curve” The

Journal of Economic Perspectives, 16(1):147-168

Cole, M. (2004). “Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the

linkages,” Ecological Economics, 48:71-81.

LAB #4 (Data and handouts will be provided)

*List, J. and C. Gallet (1999). “The environmental Kuznets curve: Does one size fit all?” Ecological Economics,

31:409-423

============================ QUIZ 5 (TAKE-HOME) ================================

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Getting Started on your Term Paper

Where to Start Looking for Possible Topics:

Review of Environmental Economics and Policy

Example:

Tom H. Tietenberg, Reflections—Carbon Pricing in Practice, Review of Environmental Economics and

Policy, Volume 7, Issue 2, Summer 2013, Pages 313–329

International Review of Environmental & Resource Economics

Example:

Shadbegian, Ronald and Ann Wolverton, Location Decisions of U.S. Polluting Plants: Theory, Empirical

Evidence, and Consequences. International Review of Environmental & Resource Economics; 2010, Vol. 4

Issue 1, p1-49, 49p

Example of Possible Topics

Comparison of different environmental standards

Comparative analysis of empirical evidence on environmental regulations and pollution (enforcement

compliance)

Technical change and innovation relationship for different sectors or different environmental problems

Environmental regulation and different measures of economic performance

Energy efficiency gap

Decentralized approaches to environmental policy: eco-labelling, information disclosure, voluntary approaches

Comparative analysis of different tax policies across counties or for different pollutants: RGGI vs EU-ETS

Comparative analysis of different tradable permit regimes policies across counties or for different pollutants

Behavioral economics and environmental policy

Environmental policy and trade policy or environmental policy and economic growth

Environmental policy in developing countries (comparative analysis with developed countries or US)

Other Important Dates

Last day add w/o instructor permission Jan 17, F

Martin Luther King Day (no class) Jan 20, M

Last day add/drop/audit/P/F Jan 27, M

Spring recess (no class) Mar 9-13,

M-F

Last day to withdraw Mar 27, F

Last day of EC 230 class May 1, F

Paper due May 7, Th,

12 noon

Tips for Success

1. As a general rule, every hour of class time requires 2-3 hours of out-of-class reading (before and after the lecture) and doing homework and practice questions to fully understand the material.

2. Read the relevant readings (see calendar) before coming to class. The guide questions for journal articles provide you some direction on the main points. Take good notes during lectures, they supplement your

readings. Your performance in class starts on how well you take down notes. Find a go-to person for notes in

case you miss class or simply just to help compare and supplement each other’s notes.

3. Quizzes, HWs, pop quizzes and other lab/writing assignments involve a variety of skills- analysis of graphs, numerical examples and essay, you need to master all skills. Be self-aware of your strengths and weaknesses

and seek out study partners that will complement your strengths. Seek out other students for study groups;

practice numerical problems solved in class. For quizzes, try to come up with potential questions and share

them with each other. Assigned HW writing assignments questions and pop quizzes are a good set of sample

exam questions. Try to make variations of those.

4. Draw and redraw graphs for better understanding. The graphs we construct in class may be scanned and posted on Bb, but to fully understand the material, you need to learn to draw the same graphs on your own rather than

just staring and interpreting at static ones. You will be required to draw graphs for HWs and quizzes.

6

Tentative Class Calendar

Week

Module MONDAY WEDNESDAY FRIDAY

1

J

13

Intro, Market model review

[GLS 17] 15

Market Model:

Externalities, Taxes,

Subsidies, Property Rights

[GLS 17]

17 Market Model: Tale of Two

Market Failures [Jaffe et al]

2

20

MLK Day–

No Class 22

Market Model: Tale of Two

Market Failures [Jaffe et al] 24

MD-MAC Model Incentive

for Innovation

[Milliman and Prince]

3

27

MD-MAC Model Incentive

for Innovation

[Milliman and Prince]

29 MD-MAC Model

[Fullerton] 31

MD-MAC Model

[Fullerton]

4

F

3

Instrument Choice under

Uncertainty

[GLS 17, Sterner]

5 QUIZ 1 (IN CLASS) 7

LAB #1: OLS LAB /

READING LAB

5

10

Standards

[FF11; Gillingham et al] 12

Standards

[FF11; Gillingham et al] 14

Taxes

[FF 11; Rivers and Schaufele]

6

17

Presidents’ Day-

No class 19

Taxes

[FF 11; Rivers and

Schaufele]

21 Permits

[Schmalensee and Stavins]

7

24

Permits

[Schmalensee and Stavins] 26

Decentralized Approaches

[FF10; Kotchen] 28

Stds,vs Taxes vs Subsidies

[Jafe and Stavins]

8

M2

Regulation vs Information

[Foulon et al] 4 QUIZ 2 (IN CLASS) 6

Taxes vs Permits

[Review/Hahn]

9-13 March - SPRING RECESS – no class

9

16

Taxes vs Permits

[Metcalf] 18

Taxes vs Permits

[Keohane] 20

Theory of Regulation

[Dion]

10

23

Theory of Regulation

[Dion]

PROPOSAL DUE

25

LAB #2: THEORY OF

REGULATION

QUIZ 3 DUE

27 Porter Hypothesis

[Ambec et al]

11

30

Porter Hypothesis

[Ambec et al] A1

Porter Hypothesis

[Dechezleprêtre and Sato] 3

LAB #3:-PORTER

HYPOTHESIS

12

6

LAB #3:-PORTER

HYPOTHESIS 8 QUIZ 4 (IN CLASS) 10

EKC

[Pugel]

ANNOTATED BIB DUE

13

13

EKC

[Carson] 15

EKC

[Dasgupta et al] 17 LAB #4: EKC

14

20 LAB #4: EKC 22

EKC

[Cole] 24

EKC

[List and Gallet]

QUIZ 5 DUE

15

27 Paper presentations 27 Paper presentations M 1 Paper presentations

Exam

Week THURSDAY, MAY 7, 12 NOON

FINAL PAPER DUE

Grading System

90/93/97=A-/A/A+ 80/83/87=B-/B/B+ 70/73/77=C-/C/C+ 60/63/67=-/D/D+ <60=F

30% HW/LABS Written summaries of assigned readings; lab reports

30% QUIZZES In-class or take-home (see outline)

30% PAPER See policies for components

10% PART Class participation (all semester)

7

Other Important Dates

Last day add w/o instructor permission Jan 17, F

Martin Luther King Day (no class) Jan 20, M

Last day add/drop/audit/P/F Jan 27, M

Spring recess (no class) Mar 9-13, M-F

Last day to withdraw Mar 27, F

Class Policies 1. Attendance. You are allowed only 4 unexcused absences. University policy: “In the event of illness requiring

hospitalization or extended absence from classes because of a medical condition, with permission from the

student, a designated member of the Primary Care/Women’s Health staff will notify the student's Dean's Office

who will then be in touch with the student’s faculty.” I reserve the final authority to excuse other types of

absences, and final authority on deciding on missed homeworks and quizzes. No make-ups for labs, debates, all

oral presentations.

2. Class Participation. Class participation is a considerable part of your grade – you may be asked to be a presenter of an assigned reading, a discussant, and overall participation. There is no opportunity for you to be graded for

participation and you cannot make up for missed class participation due to an absence. Showing up everyday

does not guarantee you will pass (get 60%) for the class participation component. You actually have to

contribute to the intellectual discussion in class. If you routinely just sit in class, you will get 0% on overall

class participation.

3. Labs. Everybody is expected to bring his/her laptop to class for labs. You are also expected to have professional version of Excel. Check UVM bookstore for UVM student/staff discounts on MS suite of programs

(professional edition).

4. Final Paper. The final paper for this class (approx. 15-20 pages) can cover any topic you wish. The topic may or may not be directly related to any of our modules. I need to approve your topic first (see outline for due

date). I will provide suggested topics in class as we go along. See guidelines and assessment criteria.

 4% Proposal/Outline

 8% Annotated bibliography

 15% Final paper

 3% Presentation of Final paper (5 minutes each, 3-5 ppt slides)

5. Office Hours and Email. Office hours are designed to help students with difficult concepts and challenging exercises. Office hours are not designed for personal tutorial sessions for students who miss classes, come late

or leave early. I do not make a habit of explaining exams, lectures, assignments by email. If you need

something clarified, come to my office hours or you can speak with me before or after the class. Emails are for

setting appointments or for letting me know about medical-relate absences. See attendance policy above.

6. Special Considerations. I will follow University of Vermont policies regarding student athletes, special religious events, notetaking needs and learning disabilities (via SAS), proctoring needs and extra examination

time (via EPC), etc. Please be aware that there are deadlines for informing me of your special needs. Missing

the deadline would mean you will not be given any special considerations. You are responsible for scheduling

exams with EPC. You are required to set an appointment to meet with me in person if you are sending me an

SAS or EPC letter. I will not accept any request unless I meet with you in person.

8

Guidelines for Position Paper (Quiz #3)

Based from: http://www.xavier.edu/library/students/documents/position_paper.pdf

Your position paper should have the following parts:

An introduction (5 points)

The introduction should identify the issue and state your position - written in a way that catches the reader’s attention

 Identification of the issue – why taxes vs tradable permit for climate change mitigation is more suitable

 Statement of the position The body (45 points)

The body of the position paper may contain several paragraphs. Each paragraph should present an idea or main concept that

clarifies a portion of the position statement and is supported by evidence or facts (I suggest each paragraph should deal with

one criterion that compares both taxes and tradable permits and makes an argument for the position you are trying to

defend. Evidence or facts has to come from actual examples of countries/regions that have used a tax or tradable permit for

climate change. This is where the readings posted on Bb would be important. Evidence can be primary source quotations,

statistical data, interviews with experts, and indisputable dates or events (Again, based form your readings not from your

own opinion or interviews). Evidence should lead, through inductive reasoning, to the main concept or idea presented in the

paragraph. (Make sure you cite evidence that would help your assertion in that paragraph). The body may begin with some

background information and should incorporate a discussion of both sides of the issue. (This means that the body should

also contain a recognition of the similarities of both sides as well as debunking of the strengths of the other side and making

a further case for how those strengths are not as important or how your side can be revised or adapted to go around about

an apparent weakness)

 Background information

 Supporting evidence or facts

 A discussion of both sides of the issue A conclusion (10 points)

The conclusion should summarize the main concepts and ideas and reinforce, without repeating, the introduction or body of

the paper. It could include suggested courses of action and possible solutions

 Suggested courses of action (for the case of the US: why would you propose this policy?)

 Possible solutions (possible ways to implement the position you are defending considering its weaknesses and how to highlight its strengths)

Guidelines for Labs

Excel File Submission Quantitative Component

 For each of the Labs, under each Module, I will create a Lab Link on Bb were you can o Download the data and extra reference materials o Download the handout (I will distribute them in class too) o Submit your Excel spreadsheets

 I will go over these handouts in class and you are be expected to do the same thing to your Excel file.

 If you have not worked on Excel, I suggest the following links, we will have a short lab: http://www.microsoft.com/mac/excel/getting-started-with-excel

https://www.youtube.com/watch?v=B9mSM9B01o4

 The plan is to devote 2 class sessions for each lab. That should be enough time to both teach you what needs to be done and for you to complete answering the other the questions on your own.

 You are required to submit the Excel spreadsheet via Bb at the end of the last lab session. No extensions. It will be part of your quiz grade (Quiz 4, 5, 6) that is related to that lab.

Analysis and Discussion for labs

We will discuss the lab results and relate them with the papers we discuss under that module. Note also that the quizzes

following the labs may cover largely the lectures and readings for that module and will test you on your knowledge of economic

theory, the assigned paper and interpretation of results. In these quiz questions, you may be required to do any combination the

following.

o A brief discussion of the variables used in the Excel exercise and relate them to the topic at hand and the article(s) assigned/discussed in that module.

o Analysis of the results – their economic meaning and interpretation. o Discussion of the relevance of the results to economic theory and policy o Discussion of your results relative to other papers discussed in class or another new assigned article

As you can see, understanding of the readings that we will discuss before the Lab session is very important. Hence, you need to

do the readings as they are assigned so you will not cram several weeks-worth of readings in a week to do the quiz. Once you

fall behind in the readings, you cannot turn in a successful write-up.

9

Guidelines for Term Paper

You may choose any topic you wish (subject to my approval and suggestions) or make a significant empirical

extension of any of the labs. Note that you need to first submit a proposal (outline with a list of reference) and an

annotated bibliography

If you chose to do the empirical extensions the final paper should be a significantly improved and extended version

of your quantitative exercise for those labs. You are required to use extra data which you can collect on your own

or choose from the extra data I can provide. Suggestions on extensions for the final paper will be given as we finish

each Lab.

See below for detailed guidelines for the three sequential requirements. See calendar for due dates. You will also be

asked to submit peer evaluation of the outline and annotated bibliography of another student in class, It is part of

your grade. The assessment instrument is provided.

1. Term Paper Proposal/Outline

Parts of the Proposal:

Title

Abstract

Background and Statement/Description of Research Question(s)

You may have one general research question or several small but inter-related sub-research questions.

Make sure your research questions are not mere descriptions but they analyze things: Make sure you do not

only describe or identify but more importantly asses, evaluate, examine, critique, compare, estimate.

Relevance of Research Questions/Contributions to the Literature

Provide the gaps in the literature and how your study contributes to it. Provide also relevance from policy

perspective, if applicable.

Economic Theory

Describe the economic theory that you will use to analyze your research problem. This involves identifying and

describing the economic concepts that you will use.

Methodology and Analysis

Identify whether you will conduct a qualitative or quantitative analysis

If qualitative: how will you conduct your analysis? What evidence will you be looking for in the literature to

answer your research questions that asses, evaluate, examine, critique, compare?

If quantitative, provide a brief description of data sources and the type of statistical or modelling analysis you

will use.

References

2. Annotated Bibliography

An annotated bibliography is a list of citations to articles (or books) followed by a short descriptive and evaluative

paragraph (about 200 words (approx. half a page worth, doubles spaced). The annotation is meant to inform the

reader and demonstrate the relevance, accuracy, and quality of the sources you cited in relation to your research

question. Unlike abstracts, annotations are descriptive and critical.

Submit an annotated bibliography of at least 5 journal articles that will allow you to answer your research questions.

These 5 articles should be in addition to what is included in the class reading list. Type your annotated bibliography

using 12 font, double spaced.

10

Parts of the Annotated Bibliography:

1. **Attach your graded proposal. 2. Summary of research questions. It may be a revised list of research questions from your proposal. To make

it easier for you (and me) to evaluate the relevance of your references, make sure your research questions

are in bullet form.

3. Annotated bibliography of the 5 references. You may do more than 5, with no extra points. I would imagine you will need more than 5 to complete your paper. But at this stage of the paper writing process,

you are required to have read and understood 5 papers.

 Proper reference citation (parenthetical, see Foulon et al)

 Description of research question and its findings

 Clear identification of what part(s) of the paper (method, model, findings, conclusions) are relevant for your paper.

 Identification of which research question (above) the reference is answering/addressing. At least three of the five papers need to do more than provide background material for the topic, i.e., at least three

papers need to provide evidence (even qualitative ones), methods, or insights for analysis

 Identification of which of the other paper(s) cited is related to this paper and a description of how are they related (method, model, findings, conclusions).

3. Final Draft of Term Paper

The simplest rule is to look at a sample of papers in our outline as guide for the components of a good paper.

Parts of the Final Paper:

1. **Attach your graded annotated bibliography

2. Introduction: contains relevance of the paper, research objectives, hypothesis

3. Literature review: a narrative, not an annotated bibliography of the relevant literature There needs to a be clear relationship between your research objectives and literature cited

You need to identify what the literature has done, and existing gaps that you will address

4. Data: If doing an empirical paper or extension of Module 4 or 5 or any empirical paper: What data and variables you will use to answer your objectives

How each variable attempts to proxy for what exactly you want to measure

You may use variables used in class but I will be providing extra variables

Clearly, if you use new variables, that adds value to your paper, inching you closer to A!

5. Methods: discussion of what you did: empirical analysis, comparative qualitative analysis, critical review and assessment with details on criteria used for assessment, etc

6. Results: summarize results in Table (If extending labs: see the papers we used in class as model) and how tabulated results are discussed

7. Analysis: check empirical papers we discussed in class on how to discuss results and analysis

Conclusions

References

If the final paper has to be an extension and improved version of the labs, there needs to be substantial additional

content and analysis. If there is hardly any difference in the content between any of our labs and your paper, you get

a zero in the final paper.

11

ASSESSMENT FORM / CRITERIA FOR OUTLINE/PROPOSAL

General Structure (5 points)

____ My outline has all the necessary sections/components (see next page)

____ My outline is NOT matching or a copy of one section (or subsection) of one paper

from the literature.

____ My outline is typed (12 font, double spaced, max of 5 pages).

____ I have run a spell check.

Content (40 points)

____ My outline is not a chronological description of events on a particular topic.

____ I am incorporating and applying economic theory in my research and I have

identified and explained that relevant economic theory in my outline.

I have described the academic and/or policy significance of my research and I

have clearly identified how my paper contributes to the relevant literature

____ My outline emphasizes analysis rather than description.

References (15 points)

____ My outline/proposal includes a list of at least 5 references.

____ My references are peer-reviewed articles.

____ At least 2/3 of my references are economic references (from the database Econlit).

____ I have read at least the abstract of all the references provided to make sure they

are appropriate for my research. (DRH Note: An annotated bibliography due later

will ensure you read have all articles and can explain in your own words how

each contributes to your research)

Optional: Only if doing empirical/quantitative analysis (part of the Content)

____ I am incorporating description of data sources in my outline.

____ I have identified the type of quantitative analysis I will undertake (regression

analysis, or elasticity estimate, etc).

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ASSESSMENT FORM / CRITERIA FOR ANNOTATED BIBLIOGRAPHY

__________ (10 points) Attach your graded proposal.

__________ (15 points) Summary of research questions. It may be a revised list of research

questions from your proposal. To make it easier for you (and me) to evaluate the relevance of

your references, make sure your research questions are in bullet form.

__________ (30 points for each reference=150 points) Annotated bibliography of the 5

references. You may do more than 5, with no extra points. I would imagine you will need more

than 5 to complete your paper. But at this stage of the paper writing process, you are required to

have read and understood 5 papers.

Paper

1

Paper

2

Paper

3

Paper

4

Paper

5

Proper reference citation (5 points each)

Description of research question and its findings

(5 points each)

Clear identification of what part(s) of the paper

(method, model, findings, conclusions) are relevant

for your paper (10 points).

Identification of which research question (above) the

reference is answering/addressing.

At least three of the five papers need to do more than

provide background material for the topic, i.e., at

least three papers need to provide evidence (even

qualitative ones), methods, or insights for analysis (5

points each)

Identification of which of the other paper(s) cited is

related to this paper and a description of how are they

related (method, model, findings, conclusions). (5

points each each)

Total

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ASSESSEMENT INSTRUMENT FOR FINAL TERM PAPER

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ASSESSMENT FORM / CRITERIA FOR FINAL PAPER ORAL PRESENTATION

1. The relevance/motivation of the study was clearly presented.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

2. The main research question(s) was/were clear and explicitly stated.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

3. The methods used were clearly explained.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

4. The results were clearly described and were related to the research objectives.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

5. The conclusions were clearly backed by the findings of the study.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

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NAME ___________________________

POSITION ___________________________ (Tax or Permits)

ROLE ___________________________

ASSESSMENT FORM / CRITERIA FOR INDIVIDUAL DEBATE PERFORMANCE

1. The argument(s) was/were explicitly stated

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

2. The argument(s) presented was/were backed by evidence

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

3. The evidence presented were clear and appropriate

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

4. The presentation was clear and coherent

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

OTHER COMMENTS

_____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________

ASSESSMENT FORM / CRITERIA FOR DISCUSSANT

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1. The questions are clearly related to the paper. STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

2. The questions were beyond the scope of the guide questions provided.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

3. The questions were thought-provoking and generated good class discussion

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

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PEER ASSESSMENT FORM

AUTHOR ___________________________

EVALUATOR ___________________________

After reading the outline/proposal, answer the questions below. Circle the number.

1. The rationale/motivation of the topic is clear and compelling. I would like to read the final paper. STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

1 2 3 4 5

2. The paper clearly identifies the gap in the literature that it is addressing. I am convinced this is an important study. STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

1 2 3 4 5

3. The research question(s) is(are) clearly stated. I know exactly what the author will do in this paper. STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

1 2 3 4 5

4. The economic theory/concept that this study is building from is appropriate. The author has a clear understanding of the economic theory/concepts he/she will use to answer his/her research question(s).

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

5. The proposed research method is appropriate. STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

1 2 3 4 5 6. Write more suggestions and comment for improvement not addressed in any question above. This is the most valuable

part of the peer review. (You may also use the back of this sheet for more comments)

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PEER ASSESSMENT FORM / CRITERIA FOR ANNOTATED BIBLIOGRAPHY

AUTHOR ___________________________

EVALUATOR ___________________________

After reading one annotated bibliography and the research question, answer the questions below. Circle the number.

1. The summary of the article is clear STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

1 2 3 4 5 2. The connection between the article and one or multiple research questions is stated explicitly. STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

1 2 3 4 5

3. The relevance of the article in terms of how it will answer one or multiple research question(s) is clear STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

1 2 3 4 5 4. A connection between this article and another article is clearly stated and described. STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

1 2 3 4 5 5. Write more suggestions and comment for improvement not addressed in any question above. This is the most valuable

part of the peer review. (You may also use the back of this sheet for more comments)

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List of Presenters and Discussants

Date Author of Paper Presenters Discussants

*Foulon et al 2002 ALL ALL

Portney et al 2003

Feb 7 Gillingham et al 2016

Murray and Rivers 2015

Feb 12 Rivers and Schaufele 2015

Feb 17 Schmalensee and Stavins 2017

Tietenberg 1998

Feb 21 Kotchen 2013

Feb 28 *Jaffe and Stavins 1995

Mar 4 Hahn 2009

Mar 6 *Metcalf 2009 ALL ALL

Mar 16 *Keohane 2009 ALL ALL

Mar 18 Dion et al 1998

Shadbegian and Wolverton 2010

Carraro et al 2010

Mar 27 Ambec et al 2013

Apr 1 Dechezleprêtre and Sato 2017

Apr 10 Carson 2010

Apr 15 Dasgupta et al 2002

Apr 22 Cole 2004

Apr 24 List and Gallet 1999

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TERM PAPER TOPICS

Presentations: In class, 8:30-9:20, L200Lafayette

Topic Name

April 27

April 29

May 1

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EC 230 PAPER PRESENTATION AND SUBMISSION

APRIL 27, 29, MAY 1 M, W, F IN CLASS

GUIDELINES

 5 minute presentation per speaker

 About 3-5 slides

 Up to 8 presenters per day. Come prepared with your

jumpdrive before 8:30 am or send me your ppt before 8 am

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ASSESSMENT FORM / CRITERIA FOR ORAL PAPER PRESENTATION

1. The relevance/motivation of the study was clearly presented.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

2. The main research question(s) was/were clear and explicitly stated.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

3. The methods used were clearly explained.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

4. The results were clearly described and were related to the research objectives.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

5. The conclusions were clearly backed by the findings of the study.

STRONGLY DISGAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE 1 2 3 4 5

Guidelines for Oral Reporting Assigned Reporter

There will be 1-2 assigned reporters for each a paper. These students are required to

 submit the written answer/summary to the homework questions (guide questions will be provided as we go along)

 prepare a 5-7 minute MS powerpoint presentation to be submitted (printed NOT emailed) The presenter will be graded according to content (follow what we do in “Reading Lab”) and style (clarity,

cohesion). The rubric for evaluation will be provided.

Assigned Discussants

There will be two assigned discussants per paper. These two students are required to

 submit the written answer to the homework questions (guide questions will be provided as we go along) like everyone else

 prepare a 2-3 critical questions about the assigned paper submitted to me (printed NOT emailed) The discussant will be graded according to quality of discussant points / questions to lead to further discussion in

class and how those points relate to other concepts discussed in class

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