ECO 435
Part Six: “Property Rights and the Environment“
Chapter 25 – Economic implications of global warming
Chapter 27 – Ethanol in gasoline
This section of the text is oriented towards the interplay
of economics and the environment — and which policies, if any, should be
implemented in order to insure the survival of the planetThe two chapters we
focus on are very controversial and have wide-ranging implicationsSomething
like 25-40% of US corn acreage is dedicated to ethanol, and something like $4-5
billion is spent on policies, production, and programs related to global
warmingOnce again we will eyewitness the tangible application of economics and
the way that politics frequently intermixes, and often dominates,
“simple” economicsYou can spend an entire semester studying all the
ins and outs of just these two closely related subjects
PART I – background
(1) Read and summarize the important points in Chapters 25
and 27, and also submit to your semester journal
(2) What is “rational ignorance?”Since this is an
important reason so many controversial laws get put into place, can you think
of any other examples in which it played a factor in creating a law or policy
that everyone else (ie those that had nothing to do with its passage) then
had to live with, but then questioned how or why it ever was enacted?It doesn’t
necessarily have to be a national policy, it could be something “micro”
like a dorm or college regulation, or a city ordinance, a store policy,
etcWhat you are looking for is some policy prescription at whatever level, in
which you wonder how did it ever come into existence?
(3) As background it is important to understand the Energy
Independence and Security Act of 2007Do a search on google and determine what
the goals and justification of the EISA were, and what the direct consequences
were, both then and into the future
(4) Look up the IPCC, which will frequently be referred to
under both issuesWhat is the organization?Who sponsors it?Who are its members?
What does it do?
PART II – Anthropogenic Global Warming (human-caused)
We are not going to directly investigate the economics of
CO2 reductionThere are any number of web videos, books, and articles that go
against the idea that human beings have caused GW, but the problem is that the
belief at some point became “politically correct“We are not going to
try to amass the many facts that question its existence, but there’s also no
sense in studying CO2-reduction policies if the underlying science doesn’t
justify itFor this component we are going to stretch the boundaries a little
bit and dig into some of the science, statistics, and politics surrounding the
issue (If you are interested in some convincing anti-GW literature, stop by and
see me)
(1)Briefly summarize the following article from The
Economist: “Who Pressed the Pause Button,” March 6, 2014 ( words)
https://wwweconomistcom/news/science-and-technology/21598610-slowdown-rising-temperatures-over-past-15-years-goes-being
(2) Briefly summarize what Wikipedia has to say about
“The Pause” (
https://enwikipediaorg/wiki/Global_warming_hiatus
(3) What is your reaction to the following, in which the
head of the Sierra Club (a major environmental organization) is confronted with
contrary evidence? (
https://wwwyoutubecom/watch?v=Sl9-tY1oZNw
(4) The following article from Forbes is a critique of the
original John Cook article that started the whole idea about the existence of a
so-called “consensus” among scientistsWhat are the author’s reasons
for doubting the “97%” statistic?
https://wwwforbescom/sites/alexepstein/2015/01/0
(5) Michael Crichton interview (debate) with PBS’s Charlie
Rose – watch all 3 parts
https://wwwbingcom/videos/search?q=michael+crichton+pbs+interview+global+warming+charlie+rose&&view=detail&mid=F94902983BABA5F8BE5CF94902983BABA5F8BE5C&&FORM=VRDGAR
To start you might want to look up the bio of Mr Crichton;
he’s a very accomplished individual as an author and director who spent a few
years studying deeply the issue of GW, and came to the politically incorrect
conclusionDo you think he was convincing in defending his position against Mr
Rose?What were his strongest points?Were there any questions you spotted from
Mr Rose in which he dodged or didn’t make his case?
PART III – ethanol cost and benefit in gasoline
(1) Ethanol effects on engines and carburetors – From the
following article find (and state) the direct quotes that reflect the point of
view of mechanics that actually work with engines on the effects of ethanol on
engine performance
http://wwwnbcnewscom/id/25936782/ns/business-con
(2) On google type in “environmental costs of
ethanol” and make a list of what you find with just a brief 1-2 sentence
explanation of each
(3) The following is a brief summary of the economic costs
and benefits of ethanol from a non-ecological perspective(a) What are the 3-4
strongest benefits, (b) What are the 3-4 greatest costs, (c) What are the
biggest uncertainties associated with the whole issue of forcing ethanol usage
in gasoline?For each question make a list and a 1-2 sentence explanation of
each will sufficeThis was the best economic summary I could find, without
being overly technical
https://publicpolicypepperdineedu/academics/rese
PART IV – extra credit (up to +2
(1) GW is a fascinating issue because there is so much
involved – economics and politics, history (ie billions of years, ice ages,
etc), and scienceFor this question you don’t even need to write an essay,
merely list the main points the presenter, a professor named Willie Soon makes,
with maybe one sentence explanation of eachThe more you list the greater the
creditIt is extra because it goes beyond the realm of just economics