The impact of globalization on the natural environment is an important and politically charged question. This course will examine the mechanisms through which the economic (e.g. trade and foreign investment) and institutional (e.g. international trade and investment agreements) aspects of globalization impact the natural environment both locally and globally. Primarily using an economic approach, the course will present theory and statistical evidence, as well as examine case-studies. A range of arguments from proponents and critics of globalization will be presented, and students will be encouraged to develop their own position on controversial issues such as balancing environmental protection with market-access for low-income producers, and the environmental impacts of a global market for biofuels. The course aims to provide students with the knowledge and conceptual tools necessary to contribute to the ongoing policy debate on the economic aspects of globalization and the environment.

On completion of the course students should be able to:

• List and briefly explain several important issues related to economic globalization and the environment.
• State some broadly accepted facts about the relationship between economic globalization and the environment and identify several points of contention in the academic literature.
• Define and explain key concepts from international economics and environmental economics and apply them to questions about globalization and the environment.
• Demonstrate knowledge and understanding of the way in which national and international institutions shape the relationship between economic globalization and the environment.
• Demonstrate understanding of the way in which diverse circumstances can lead to widely differing perspectives and preferences on matters related to economic globalization and the environment.
• Identify, motivate and clearly formulate important questions related to economic globalization and the environment.
• Explain the benefits and limitations of applying an economic disciplinary approach to a given question on economic globalization and the environment.
• Apply a combination of independent research skills, communication skills and economic analysis to provide policy advice on issues related to economic globalization and the environment.

1. Biofuel Standards Paper

In this task you assume the role first of a political advisor in France and second of one in Indonesia. The French and Indonesian advisors must make the arguments respectively for and against the EU Biofuel Sustainability Standards. Each advisor has an equal number (i.e. 750) words to make their case. The advisor should assume that their arguments will not be heard outside of their own government (i.e. it is safe to make arguments which you would not want the other side to hear.) Make sure to apply course content, conceptual or empirical, to argue your cases.

Further information, including background to the dispute can be found under Assessments on the course Wattle site.

Length: Max 1,500 words

Value: 35% of course grade

Submission: to Turnitin and the course Wattle site no later than 11am Wednesday 1^st September.

2. Policy Paper

In this task you are required to choose a government policy or position (or something that you think there should be a policy on) relevant to globalization and the environment. You may choose the government of your choice, national or sub-national level.

The Policy Paper task is comprised of three sub-components:

1. Short Paragraph: policy question, country, motivation, and relevance to course.
2. An Annotated Bibliography of papers you intend to refer to in writing your final paper.
3. Final Policy Paper.

Task 2.a. Short Paragraph

Compose a short paragraph stating your proposed policy question and country, along with a brief statement of how you think this question relates to the course material. Be sure to motivate the question – explain why you think it is an interesting or important question. Note it will most likely make it easier for you to write a good paper if you formulate your question in a way which has a “yes/no” type answer.

Length: Max 300 words

Value: 10% of course grade

Submission: to Turnitin and the course Wattle site no later than 11am Wednesday 8^th September.

Task 2.b. Annotated Bibliography

The Annotated Bibliography should contain a list of key papers (including full bibliographic information) which you intend to refer to in your Final Policy Paper. Under each item you should include:

Summary: What are the main arguments? What is the point of this book or article? What topics are covered? If someone asked what this article/book is about, what would you say?

• Assessment: Is it a useful source? How does it compare with other sources in your bibliography? Is the information reliable? Is this source biased or objective? What is the goal of this source? and
• Reflection: Once you've summarized and assessed a source, you need to ask how it fits into your research. Was this source helpful to you? How does it help you shape your argument? How can you use this source in your research project? Has it changed how you think about your topic?

You should spend more space explaining important papers and less explaining minor papers.

Length: Max 2,000 words

Value: 20% of course grade

Submission: To Turnitin and the course Wattle site no later than 11am Wednesday 29^th September.

Task 2.c. Final Policy Paper

Your Final Policy Paper should consider the following questions:

• In simple terms, what is the policy question you are addressing?
• What is the government trying to achieve and why is it an important issue for your chosen government?
• What is the current government policy/negotiating position (if any)?
• What do the theories and/or empirical evidence covered in the course suggest might be an “optimal” policy solution? Explain.
• Is there any other academic or other research relevant to your policy question? Is there a clear preferred policy suggested by the existing literature?
• What other factors (e.g. political, legal) affect the setting of policy in this area and how?
• Do you think the government should change its current policy: why or why not?
  • If so, what is your recommended policy/negotiating position?

Example topics include:

Investment Promotion and Protection Agreements and Government Right to Regulate

Bio-safety and agricultural import restrictions

The precautionary principle and trade rules

Carbon trading and the WTO

Length: Max 3,000 words

Value: 35% of course grade

Submission: To Turnitin and the course Wattle site no later than 11am Wednesday 27^th October.

2.5 hrs per week lecture time, 1-2 hr per week assigned readings, 5 hrs per week assessment tasks.

Course reader available from Crawford School

Week 1

UNEP (2000) Environment and trade: a handbook, UNEP & IISD, Chapter 1.

Aisbett, Emma CRWF8001: Lecture Notes: Week1.

Week 2

Crampton, Eric. (2007) “Market failure.” In David Clark, ed. Encyclopedia of Law and Society: American and Global Perspectives. Sage Publications.

Zilberman, David EEP101: Lecture Notes: Chapter 2 “When is a Market Socially Optimal?”

Zilberman, David EEP101: Lecture Notes: Chapter 4 “Negative Externalities and Policy”

Week 3

Krugman, Paul & Obstfeld, Maurice (2003) International Economics: theory and policy, 6^th Edition, Addison Wesley, Boston, p1-26.

Blinder, Alan S. (2008) "Free Trade." In The Concise Encyclopedia of Economics.  Library of Economics and Liberty. http://www.econlib.org/library/Enc/FreeTrade.html

Karp, Larry Lecture Notes: “Theorem of the Second Best and Principle of Targeting”,

Week 4

Ostrom, Elinor et al. (1999) “Revisiting the Commons: Local Lessons, Global Challenges” Science 284 (5412), 278

Chichilnisky, Graciela (1994) “North-South Trade and the Global Environment”, AER, Vol. 84, No. 4, Section 0-I, pp. 851-855.

Copeland, Brian R. and M. Scott Taylor. (2009) "Trade, Tragedy, and the Commons." AER, Vol. 99, No.3, Introduction.

Week 5

Earley, J. (2008) Biofuels: Food versus Fuel Revisited, Bridges, 12(2) March 2008, p.12-13.

Johnson, F. (2008) Tropical Biomass and the Global Biofuels Market, Bridges, 12(2) March 2008, p.14-16.

EurActiv (2009) “Biofuels, Trade and Sustainability”, July 2009

EurActiv (2010) “EU biofuels target borderline sustainable, report finds”, April 2010

None required, but internet access advisable.

Online/distance participation possible subject to approval from course co-ordinator.