SAM20 The Economics of Resource Rich Countries

• Topics

  The course covers five main topics:

  1. Global oil, gas and mineral markets
  2. Firms and resources: The behaviour of firms in the resource industries such as producers of minerals, precious metals and oil
  3. Climate risks: The consequences of climate change and associated policies for firms and countries involved in the production of hydrocarbons
  4. How to handle climate change: Design of international climate policies, adaptation to climate change and the green paradox  
  5. Investments in resources: The roles of institutions and taxation for exploration and production
  6. The resource curse: associated macroeconomic policy challenges, including saving versus spending of resource revenues, the phasing-in of resource revenues and the so-called Dutch disease

• Learning outcome

  Students will understand the economics of abundance of natural resources such as oil and gas and be familiar with policies that let countries make the most out of such resources. On completion of the course, the student will have:

  - obtained  knowledge :

  • have a broad understanding of firm behaviour in the resource industries, macroeconomic aspects of natural resource extraction, environmental aspects of the use of natural resources and how to prepare for various types of climate-related risks
  • be familiar with the central academic literature on these topics
  • know about the analytical approaches typically applied to answer questions within these areas, including both theory and empirics
  • know about popular policies within these areas

  -trained their  skills:  

  • be able to explain relationships between natural resources, economic development and the environment in a stringent and academic manner
  • be able to read academic literature
  • be able to write up and present an academic analysis as part of a team

  - and developed their  general competence:

  • know where to seek out for further information on relevant topics, including data sources and international organizations
  • participate actively in an international environment
  • applying insights from economics on real world challenges
  • be aware of different interests and trade-offs across groups, sectors and countries   

• Teaching

  Lectures, term paper and student presentations. Students are expected to attend the presentations of other groups.

• Recommended prerequisites

  Basic courses in microeconomics, such as SAM1 and SAM2 at NHH.

• Credit reduction due to overlap

  Overlap with VOA051.

• Requirements for course approval

  A term paper has to be handed in before the student presentations.

  The course approval in this course is linked to the oral presentation and the course approval is only valid in the semester it is submitted.

• Assessment

  The exam has two elements: 30 % of the grade: Oral presentation of the term paper, 70 % of the grade: three hours school exam, written in Norwegian or English.

  For re-take of the oral presentation, students have to obtain new course approval (new term paper). For re-take of the written school exam, new course approval is not necessary.

• Grading Scale

  Grading scale: A - F.

• Literature

  Bhattacharyya, S. (2011). Energy Economics. Springer.

  Humphreys, M., J.D. Sachs and J.E. Stiglitz eds. (2007), Escaping the Resource Curse, Columbia University Press.

  Note: Other literature may be added during the course.