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This course provides basic principles and methods to evaluate environment and resource. Many public or private resource projects require rigorous evaluation analysis to verify their economic validity. Starting from the conventional Net Present Value method, the course covers various benefit-cost analysis methods which are widely used in evaluating resources including energy resources, and environmental resources. Partial list for covered evaluation methods includes NPV, BC ratio, real option analysis, contingent valuation method, hedonic price method and travel cost method.

1. Course objective and overview

This course provides basic principles and methods to evaluate environment and resource. Many public or private resource projects require rigorous evaluation analysis to verify their economic validity. Starting from the conventional Net Present Value method, the course covers various benefit-cost analysis methods which are widely used in evaluating resources including energy resources, and environmental resources. Partial list for covered evaluation methods includes NPV, BC ratio, real option analysis, contingent valuation method, hedonic price method and travel cost method.

 

2. Textbook and lecture materials

(1) Cost Benefit Analysis: Concepts and Practice (3rd Edition), A. Boardman, D. Greenberg, A. Vining, and D. Weimer, Pearson Education, 2006.

(2) Project Valuation using Real Options, P. Kodukula and C. Papudesu, J. Ross Publishing, Inc. 2006.

(3) Natural Resource and Environmental Economics, R. Perman et al., Pearson Education Limited, 2003.

(4) Additional lecture notes is provided (written in Korean)

 

3. Prerequisite courses

Students are strongly recommended to take Microeconomics (mandatory) and Mathematical Economics (optional) before this course.

 

4. Evaluation

Midterm (30%), Final exam (40%), Team project (20%), Participation (10%)

; one midterm and final exam will count 30% and 40%, respectively. Team project will be required to evaluate hypothetical energy or environment development and it will count 20% in determining the course grade.

 

4. Course outline

week

 

Period

 

 

content

1

 

08.31 - 09.06

 

 

Introduction

2

 

09.07 - 09.13

 

 

Public economics and Benefit-Cost analysis  

3

 

09.14 - 09.20

 

 

Benefit-Cost analysis: NPV, BC ratio and IRR

4

 

09.21 - 09.27

 

 

Issue of discount rate and WACC

5

 

09.28 - 10.04

 

 

Case study: renewable energy project

6

 

10.05 - 10.11

 

 

Benefit-Cost analysis: uncertainty and irreversibility

7

 

10.12 - 10.18

 

 

Real option valuation methods

8

 

10.19 - 10.25

 

 

Excel works and midterm exam

9

 

10.26 - 11.01

 

 

Welfare analysis basic: CV and EV

10

 

11.02 - 11.08

 

 

Evaluation of non-market goods: CVM theory

11

 

11.09 - 11.15

 

 

Evaluation of non-market goods: CVM controversial issues

12

 

11.16 - 11.22

 

 

Evaluation of non-market goods: CVM case study

13

 

11.23 - 11.29

 

 

Evaluation of non-market goods: hedonic price method

14

 

11.30 - 12.06

 

 

Evaluation of non-market goods: travel cost method

15

 

12.07 - 12.13

 

 

Supplementary classes

16

 

12.14 - 12.20

 

 

Final exam

 

 

Copyright 2009, by the Contributing Authors. Cite/attribute Resource. Park, H. J., kuocw. (2009, December 30). Syllabus. Retrieved October 23, 2014, from Korea University OpenCourseWare Web site: http://ocw.korea.edu/ocw/college-of-life-sciences-and-biotechnology/economic-evaluation-of-environment-and-natural-resource/syllabus. This work is licensed under a Creative Commons License Creative Commons License