COURSE OUTLINE

We consider some of the main issues regarding the exploitation of natural resources in the world today. The main objective is to gain a better understanding as to why agents take decisions that lead to sub-optimal uses of natural resources. We also consider when and how governments can intervene to improve on the situation. Sometimes, though to a lesser extent, we will consider some political-economic aspects related to natural resource exploitation. The course is intended to be relevant to both rich and poor countries. We first consider static models of resource use. This provides a simple framework to analyze basic institutional arrangements and some policy implications. Dynamic models of natural-resource use are considered in the second part. We consider explicitly the cases of fisheries, forests, and non-renewable resources, such as mineral and oil deposits. Extensions to other resources, such as water, game, or pastures, will come naturally. Some policy measures are discussed. In the final part of the course, we analyze in more details the role of institutions in affecting agents ’ decisions to use resources. Three basic classes of institutions are explicitly considered: exclusive property, free access, and common property