FARE 2700 Final: Key Concepts to Review for Final

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 2700
• Professor: Maneesh Sharma

Document Summary

September 13th: environment as a composite asset, closed system, laws of thermodynamics, normative vs. positive economics, static and dynamic efficiency, review of intro econ concepts, consumer surplus, producer surplus, total surplus, etc. Intro to cost-benefit analysis: anthropocentric perspective, importance of opportunity costs, defining optimal" and fair" allocations, first equimarginal principle, pareto optimality. Intro to present value: present value criterion, discounting, present value formula, two examples of present value calculations: single value, and stream of values. Pan canadian framework on clean growth and climate change". Intrinsic and instrumental value: how to we value environmental resources, measuring willingness to pay (wtp) through non-market valuation, total wtp = use value + option value + non-use value, ex. valuing a plot of land. 2005: challenges to environmental valuation, aggregation, partial values, review: value of life method (discussed in freeman) September 29th: definition of property rights (from your text, key characteristics: exclusivity, transferability, enforceability, bison example.