Economics of Natural Resources

Bachelor 2023/2024

Type: Elective course (HSE/NES Programme in Economics)

Area of studies: Economics

Delivered by: Undergraduate Programmes Curriculum Support

Where: Faculty of Economic Sciences

When: 4 year, 3, 4 module

Mode of studies: offline

Open to: students of one campus

Language: English

ECTS credits: 6

Contact hours: 64

Full Syllabus

Abstract

It is hard to imagine how the global economy would have developed if mankind would not have access to natural resources. Non-renewable resources have been used as tools, weapons, jewelry and money for thousand of years. This course is designed to familiarize students with the role of natural resources in the global economy. To do that, students will initially be exposed to a historical overview of the critical role exhaustible resources played in economic development over the last centuries and potential future consequences of a continues use of such resources. In the second part of the course students will be familiarized with the main determinants of demand and supply of exhaustible resources and, thus, commodity price fluctuations. In the third part of the course students will learn about the relationship between natural resource wealth and economic development by focusing on the main issues facing resource rich economics. This will allow students to understand why some countries succeed while other countries fail to benefit from their resource wealth. Due to Russia’s role as a key player in global commodity markets and the importance of exhaustible natural resources for Russia’s economy, Russia will be employed as a case study whenever possible. The successful completion of the course will prepare students for advising firms in the private sector, international organizations and policy makers on issues such as the local impacts of industrial and artisanal mining, the difficulties related to the creation of formal contracts between resource rich economies and multinational firms, on the macro-management of resource wealth and many others.

Learning Objectives

To provide students with an understanding of the basic principles of such issues as optimal terms of resource extraction, local consequences of industrial and artisanal mining, macro-management of resource wealth, etc.

Expected Learning Outcomes

Familiarized with the main determinants of demand and supply of exhaustible resources and, thus, commodity price fluctuations
Understand the relationship between natural resource wealth and economic development
Understand the role of a historical overview of the critical role exhaustible resources played in economic development over the last centuries and potential future consequences of a continues use of such resources

Course Contents

Historical Overview
Resource Wealth and Economic Growth
Economics of Natural Resources

Assessment Elements

Presentation of an academic paper
Long essay
Presentation of an academic paper
Long essay
Final test
There will be online proctoring during the exam at ZOOM platform. The conference will be recorded. When suspicions of a violation of academic ethics arise, the administration reserves the right to review the video to decide if any action is necessary. Before the exam you need to prepare 2 devices. One device with the camera and ZOOM conference, and the second one you will use to make the test. Before entering the conference, install the device with the camera so that the camera captures you at the desk where you will be writing answers on paper, and the screen of the device from which you will be making the tasks. Common rules:  Upon entering ZOOM, please type your full name  Switch off notifications of all messengers and social networks on the device that will be used during the test. Pop-up notifications can be qualified as an attempt to communicate.  Switch on the microphone on the device used for ZOOM. Switch off all loud devices (TVs, alarm clocks etc.) and make sure there are no other noise sources in the room where you will be taking the exam.  Questions can be asked through the Google form, which will be send to you before the exam. If you have a question, raise your hand, and after the proctor’s permission you can type your question into the form. The proctor will inform you when you can see the answer. Questions and answers will be deleted after the student sees his/her answer Do not:  Use any materials except blank sheets of paper for your draft  Have outsiders in or out of the camera view  Communicate with other people, except the proctor  Leave the camera view during the exam  Switch off the camera and microphone during the exam  Have books or other documents on the desk, except for draft sheets and the final copy  Open any windows or screens on the device from which you are reading the task, except for the task itself and the Google form for questions to the proctor  Use headphones and smartwatch Proctor:  There will be a proctor in each virtual room  Before the exam you need to show to the proctor your room, desk, paper pads, and other materials, if any, that are allowed during the exam  The proctor may invite you to show your paper pad, the draft, or the screen of the device with the task at any time during the exam, calling you by the name via his/her microphone  You must open the task in my,nes only when the proctor instructs you to do so. After that you will have 60 minutes for the test.  The proctor will keep you informed of the remaining time
Final test
There will be online proctoring during the exam at ZOOM platform. The conference will be recorded. When suspicions of a violation of academic ethics arise, the administration reserves the right to review the video to decide if any action is necessary. Before the exam you need to prepare 2 devices. One device with the camera and ZOOM conference, and the second one you will use to make the test. Before entering the conference, install the device with the camera so that the camera captures you at the desk where you will be writing answers on paper, and the screen of the device from which you will be making the tasks. Common rules:  Upon entering ZOOM, please type your full name  Switch off notifications of all messengers and social networks on the device that will be used during the test. Pop-up notifications can be qualified as an attempt to communicate.  Switch on the microphone on the device used for ZOOM. Switch off all loud devices (TVs, alarm clocks etc.) and make sure there are no other noise sources in the room where you will be taking the exam.  Questions can be asked through the Google form, which will be send to you before the exam. If you have a question, raise your hand, and after the proctor’s permission you can type your question into the form. The proctor will inform you when you can see the answer. Questions and answers will be deleted after the student sees his/her answer Do not:  Use any materials except blank sheets of paper for your draft  Have outsiders in or out of the camera view  Communicate with other people, except the proctor  Leave the camera view during the exam  Switch off the camera and microphone during the exam  Have books or other documents on the desk, except for draft sheets and the final copy  Open any windows or screens on the device from which you are reading the task, except for the task itself and the Google form for questions to the proctor  Use headphones and smartwatch Proctor:  There will be a proctor in each virtual room  Before the exam you need to show to the proctor your room, desk, paper pads, and other materials, if any, that are allowed during the exam  The proctor may invite you to show your paper pad, the draft, or the screen of the device with the task at any time during the exam, calling you by the name via his/her microphone  You must open the task in my,nes only when the proctor instructs you to do so. After that you will have 60 minutes for the test.  The proctor will keep you informed of the remaining time

Interim Assessment

2023/2024 4th module
0 * Final test + 0.34 * Final test + 0.33 * Long essay + 0.33 * Presentation of an academic paper

Bibliography

Recommended Core Bibliography

Booming Sector and De-Industrialisation in a Small Open Economy. (1982). Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.74422DFB
Diamond, J. M. . (DE-588)120299410, (DE-576)163925402. (2005). Collapse : how societies choose to fail or succeed / Jared Diamond. New York: Viking. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edswao&AN=edswao.11585911X
Krautkraemer, J. A. (1998). Nonrenewable resource scarcity. Journal of Economic Literature, 36(4), 2065–2107. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=1408068

Recommended Additional Bibliography

Baumeister, C., & Kilian, L. (2016). Forty Years of Oil Price Fluctuations: Why the Price of Oil May Still Surprise Us. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.9CF3E05A
Kapstein, E. B. (1992). The Prize: The Epic Quest for Oil, Money, and Power. By Daniel Yergin. (New York: Simon & Schuster, 1991. 877 + xxxii pp. $24.95.). Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.BE565BB6
Michael L. Ross. (2013). The Oil Curse: How Petroleum Wealth Shapes the Development of Nations. Princeton University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.pup.pbooks.9686
Rabah Arezki, Valerie A. Ramey, & Liugang Sheng. (2015). News Shocks in Open Economies: Evidence from Giant Oil Discoveries. NBER Working Papers. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.nbr.nberwo.20857

Authors

Антонова Екатерина Сергеевна

Course Syllabus