Thursday, February 14, 2008
Back from Orlando
Sorry for the lag in posting - I've been in Orlando Florida at the World Aquaculture Society Annual Meeting. Today we will begin our discussion of Macroeconomics and the Environment. Most Environmental Economists are applied Micro types, but there is much for Macro to teach us as well. I think the fundamental question here is whether or not the Economy and Environmental Policy are complements or substitutes. The typical story is that environmental policy will hurt the economy. That is, there is a trade-off between growing the economy and protecting the environment. The first thing we will do in class today is develop a simple model to look at how the environment and the economy interact. Then we will talk about the Porter Hypothesis, The Environmental Kuznet's curve, and sustainability. I would like to finish the day with an introduction to the revenue neutral gas tax.