Slides [link]

Lecture 1

Costs of Environmental Regulation

Required reading

Response questions

  1. Pages 38-39 discuss a highly influential cost curve constructed by McKinsey. Compared to the cost curves we typically draw in economics, what is unusual about this one (KO figure 3.1)?
  2. President Biden recently suspended all drilling in the Alaskan National Wildlife Reserve (NY Times). What are the costs of this ban? How would you quantify them? (one paragraph)

Additional material

Lecture 2

Incidence and Jobs


Response questions

  1. There are now many studies by academic economists on the relationship between jobs and environmental regulation. Describe on study referenced in the two readings. Do the job effects sound small or large to you? (1 paragraph)
  2. Given this, why do you think there is so political attention paid to this issue? (1 or 2 sentences)

Additional material

Key Points