Business and the Environment ï Dr. Tom Moerenhout
1
Business and the Environment
NYU Stern, Spring 2022
Course Syllabus
Professor
E-mail
Credit Value
Dr. Tom Moerenhout
[email protected]
3
Class
ECON-UB-225.001
Day/time
Monday & Wednesday 2:00 pm – 3.15pm
Location
Washington Square
Office hours
Appointment via zoom
A. COURSE OVERVIEW
Environmental problems typically arise from “market failures.” This course examines several
environmental issues at local, national, and international levels, with a particular focus this
year on the COVID-19 economic recovery and energy and climate change. The course
explores the key fault lines between business and the environment and some of the potential
remedies, including government regulation as well as potential related business opportunities.
The schedule will also include guest lectures by relevant experts and industry representatives.
B. COURSE OBJECTIVES
The course exposes the students to the many nuances that characterize the interaction
between the business world, the environment, and environmental policy. Most business
activity impacts directly or indirectly the environment, by consuming non-reproducible
resources, polluting water, air, and grounds, and contributing to climate change. There is both
a risk to the environment from business practices, and also risks to businesses from
environmental problems, including rising temperatures and sea levels, invasive species,
freshwater shortages, overexploitation and extinctions, and global pandemics. Because of
externalities, the market system is bound to produce more pollution than efficiency. This is
the normative rationale for environmental policies whose goal is to reduce pollution-
producing business activities. While economic science has often stark recipes for optimal
regulatory instruments, in practice environmental policy is the outcome of a complex political
process that mediates the desires of the citizenry, expressed via voting and interest groups,
and those of the businesses themselves, which are channeled via the lobbying process.
Upon completion of this course, students will be able to:
● Understand the core challenges related to the business-environment intersection
● Participate in debates on the COVID-19 economic recovery and the energy transition
● Get a sense of how different businesses react differently to integrating sustainability
into their business model and value chains
Business and the Environment ï Dr. Tom Moerenhout
2
● Understand what businesses and sectors might be facing difficult times as a result of
environmental policies, and which ones might have new opportunities to grow
● Have a deeper understanding of the challenge of the deep impacts of the energy
transition on existing sectors and businesses
C. TEACHING AND LEARNING PHILOSOPHY
Healthy balance of theory and practice; focus on real-world sectors and problems; guest
lectures to share expertise; case-based teaching; active student involvement.
D. ASSESSMENT
Assessment components
You are expected to attend class in person or remote synchronously. Failure to submit or
fulfill any required component may result in failure of the class, regardless of grades
achieved in other assignments.
• Class Participation (30%): You are expected to attend class in person or remote
synchronously. Your active participation in class and attendance will be reflected in
this part of the course requirements. For some classes, there will be short assignments
to prepare the class. I also value questions and comments, and students are also
encouraged to bring up a topic from the media and news themselves for critical
discussion. I will also ask you to prepare questions ahead of the guest lectures (based
on readings) and send them to me.
• Midterm Exam (20%): Before Spring Break, students will be given a midterm exam
to assess their understanding of the theoretical and knowledge foundation portion of
the course. This midterm will take place in class and will consist of multiple-choice
questions as well as essay questions. The midterm will be closed book.
• Research Note (30%): Each student is required to prepare a research note of about 10
pages (excluding figures & tables) – Font 12, Times New Roman, 1.15 spacing. This
research note needs to address a company and evaluate how the company relates to
the environment. Students will receive an outline of what will be expected in terms of
content. The note will have a data component and an analytical component. The data
component will require the student to do research on primary sources such as
government data, trade data, company sustainability reports, etc.
• Presentation & final (20%): Students will be invited to shortly present their research
note. They will also draw one question to debate a topic from the second half of the
course (i.e., after the midterm). This will take place in class and last about 15 minutes
per student.
Late submissions
Work submitted late receives a penalty of 2 points on the 100-point scale for each day it is
late (including weekends and public holidays), unless an extension has been approved (with a
Business and the Environment ï Dr. Tom Moerenhout
3
doctor's note or by approval of NYU-DC site staff), in which case the 2 points per day
deductions start counting from the day the extended deadline has passed. Without an
approved extension, written work submitted more than 5 days (including weekends and
public holidays) following the submission date receives an F. Assignments due during finals
week that are submitted more than 3 days late (including weekends and public holidays)
without previously arranged extensions will not be accepted and will receive a zero. Any
exceptions or extensions for work during finals week must be discussed with the Washington,
DC Site Director. Students who are late for a written exam have no automatic right to take
extra time or to write the exam on another day. Please remember that university computers do
not keep your essays - you must save them elsewhere. Having lost parts of your essay on the
university computer is no excuse for a late submission.
Grade conversion
Your lecturer may use one of the following scales of numerical equivalents to letter grades:
• A = 94-100; A- = 90-93
• B+ = 87-89; B = 83-86; B- = 80-82
• C+ = 77-79; C = 73-76; C- = 70-72
• D+ = 67-69; D = 63-66; D- = 60-62
• F = below 65
At NYU Stern, we strive to create courses that challenge students intellectually and that meet
the Stern standards of academic excellence. To ensure fairness and clarity of grading, the
Stern faculty have adopted a grading guideline for core courses with enrollments of more
than 25 students in which approximately 35% of students will receive an “A” or “A-” grade.
In core classes of less than 25 students, the instructor is at liberty to give whatever grades
they think the students deserve, while maintaining rigorous academic standards.]
E. PLAGIARISM AND ACADEMIC HONESTY
Academic integrity means that the work you submit is original. Obviously, bringing answers
into an examination or copying all or part of a paper straight from a book, the Internet, or a
fellow student is a violation of this principle. But there are other forms of cheating or
plagiarizing which are just as serious — for example, presenting an oral report drawn without
attribution from other sources (oral or written); writing a sentence or paragraph which, despite
being in different words, expresses someone else’s idea(s) without a reference to the source of
the idea(s); or submitting essentially the same paper in two different courses (unless both
instructors have given their permission in advance). Receiving or giving help on a take-home
paper, examination, or quiz is also cheating, unless expressly permitted by the instructor (as in
collaborative projects).
F. BASIC RESPECT AND APPROPRIATE CLASS BEHAVIOR
While generally an easygoing teacher, I am very picky about basic respect and appropriate
class behavior. A failure to respect this will affect your participation grade.
Business and the Environment ï Dr. Tom Moerenhout
4
• I check attendance. If you cannot attend a lecture, you need to tell me before class and
state a good reason.
• Classes on zoom are always with cameras on. I check during class and the recordings
after.
• Please keep in mind we can see each other over zoom. Do not chat or laugh with
people in the background, or do anything else that can take attention away from class.
• This is a class, not a walk in the park. If we meet on zoom, please do so in a calm
environment.
• Make sure to let your classmates finish speaking before you provide feedback or
speak yourself.
• When in class and as long as the pandemic requires it, you are required to wear a
mask over your mouth and nose. One mistake is allowed. Two can lead to a failing
grade. Wearing a mask well isn’t rocket science. If you have a problem with this,
don’t take my class.
• When in class, you are not allowed to eat (unless you are in dire need of sugar due to
health reasons).
G. COURSE MATERIAL & DATA SOURCES
Readings will be made available before class via Brightspace. Slide packs will be uploaded
immediately after every course.
For their papers and for students that are interested in doing more in-depth research on global
energy and environmental policies, I recommend looking into the following academic journals:
• Business Strategy and the Environment
• Global Environmental Politics
• International Environmental Agreements
• Nature Energy
• Organization and Environment
• Corporate Social Responsibility and Environmental Management
• International Journal of Corporate Social Responsibility
• Journal of Industrial Ecology
• Clean Technologies and Environmental Policy
• Climate Policy
• Sustainable Development
• Sustainable Environment
• Environment, Development and Sustainability
• Journal of Environmental Management
• Management of Environmental Quality
• Energy Economics
• Energy for Sustainable Development
• Energy Policy
Business and the Environment ï Dr. Tom Moerenhout
5
• Renewable Energy
• Resource and Energy Economics
• Comparative Political Studies
• International Organization
• International Studies Quarterly
• Journal of Politics
• Political Studies
Given our focus on energy and climate change, students should make a habit out of following
international energy news and trends. We will try to discuss global energy news during class.
Students are welcome to introduce a topic themselves. Some source to consult:
• Financial Times Energy
• Bloomberg Energy
• Oil Price
• Reuters Energy
• Renewable Energy World
• Business Green Energy
• IEEE Spectrum
• Green Tech Media
• The Barrel (Platts blog)
If students have a deeper interest, they are encouraged to dig into data to get a better
understanding of the topic. Good sources include:
• IEA Energy Statistics
• OECD Energy data
• World Bank Energy
• World Bank’s ESMAP
• World Development Indicators
• Enerdata
• Energydata.info
The following institutes provide some of the more critical assessments of problems in global
energy and climate policy, and will come in handy during the preparation of cases:
• Columbia University’s CGEP
• International Institute for Sustainable Development Energy Program
• IISD Global Subsidies Initiative
• SAIS Initiative for Sustainable Energy Policy
• Oxford Institute of Energy Studies
• ODI Climate & Energy Program
H. DISABILITY DISCLOSURE STATEMENT
Business and the Environment ï Dr. Tom Moerenhout
6
Academic accommodations are available for students with disabilities. The Moses Center
website is www.nyu.edu/csd. Please contact the Moses Center for Student Accessibility (212-
998-4980 or [email protected]) for further information. Students who are requesting
academic accommodations are advised to reach out to the Moses Center as early as possible in
the semester for assistance.
I. STUDENT WELLNESS
In a large, complex community like NYU, it's vital to reach out to others, particularly those
who are isolated or engaged in self-destructive activities. Student wellness
(https://cas.nyu.edu/content/nyu-as/cas/academic-programs/student-wellness.html) is the
responsibility of all of us.
The NYU Wellness Exchange is the constellation of NYU’s programs and services designed
to address the overall health and mental health needs of its students. Students can access this
service 24 hours a day, seven days a week - [email protected]; (212) 443-9999.
Students can call the Wellness Exchange hotline (212-443-9999) or the NYU Counseling
Service (212-998-4780) to make an appointment for Single Session, Short-term, or Group
counseling sessions.
J. DETAILED COURSE OUTLINE
Please note that I will provide students with the most up-to-date readings and
audiovisual material via Brightspace. The list below is a preliminary list of readings.
Each week, I will send out an e-mail highlighting what readings (or sections thereof)
are required to prepare next week’s class. I will also upload audio-visual material to
support the preparation of class.
Class
Readings & student tasks
1A. Introduction to
course; globalization;
the Anthropocene
/
1B. Environmental
Challenges; types of
goods & managing the
environment
Readings:
- UNEP (2021) Making peace with nature: Key
messages & Executive Summary
- Bary (2018) Public goods, sustainable
development and business accountability.
2A. Tragedy and
management of
commons
Readings:
- Hardin (1968) Tragedy of the Commons
- Ostrom (1990) Governing the Commons: Chapter
1
- Frischman (2019) Retrospectives: Tragedy of the
Commons after 50 years
Task:
- Send in 1 page essay of a good and the challenge
of environmental protection by engaging with the
readings (by Sunday evening)
Business and the Environment ï Dr. Tom Moerenhout
7
2B. Multilateralism and
the environment:
Montreal, Kyoto and
Paris
Readings:
- Cumberlege (2020) Multilateral environmental
agreements
- Pfluger (2010) Why Montreal is not a template
- NRDC (2021) Paris Climate Agreement:
https://www.nrdc.org/stories/paris-climate-
agreement-everything-you-need-know
3A. Core concepts in
Business & the
Environment - part 1
Task:
- Prepare definition of concept and how it relates to
the environment in shared slide deck (by Sunday
evening)
- Go through the reversals of environmental rules
by the Trump Administration (found here) and be
ready to talk about one you found particularly
impactful.
3B. Guest speaker:
Irene Martinetti, World
Business Council for
Sustainable
Development
Readings:
- Ellen MacArthur Foundation (2020) The circular
economy: Until p21 + go through 10 opportunities
- WBCSD (2021) Driving the transition to circular
economy
- Ekins et al. (2019) The Circular Economy: Part 1
Task:
- Send 2 questions for guest speaker (by Tuesday
evening)
4A. Core concepts in
Business & the
Environment - part 2
Task:
- Prepare definition of concept and how it relates to
the environment in shared slide deck (by Sunday
evening)
4B. Guest speaker:
Justin Meier, Forest
Stewardship Council
Readings:
- ITC (2020) Sustainability standards: Chapter 2
and 3
- Rafols and Brander (2005) The stewardship
council model
Task:
- Based on the readings, share 2 questions for the
guest speaker (by Tuesday evening)
No class – President’s
Day
Task:
- Communicate chosen company for research note
5. Guest speaker: Luz
Cervantes, World
Wildlife Fund
Readings:
- Go through https://sciencebasedtargets.org/
- WRI (2021) https://www.wri.org/insights/ways-
companies-credible-net-zero-targets
Business and the Environment ï Dr. Tom Moerenhout
8
- MSCI (2021) Breaking down corporate climate
targets
- Read the sustainability strategy and report, as well
as the annual report of the company you chose for
your research note.
Task:
- Based on the readings, share 2 questions for the
guest speaker (by Tuesday evening)
6A. Intro to Energy:
High Carbon (oil, coal,
natural gas)
Readings:
- IEA (2021) Coal: Executive Summary
- IEA (2021) Oil: Executive Summary
- IEA (2020) Gas: Executive Summary
6B. Intro to Energy:
Low Carbon (hydro,
wind, solar, nuclear)
Readings:
- IEA (2021) Electricity Market Report: Executive
Summary
- IRENA (2021) Renewable power generation costs
in 2020: Executive Summary
- IEA (2021) Renewables 2021 – analysis and
forecasts to 2026: Executive Summary
7. Intro to Energy:
Trends & future
scenarios
Readings:
- IEA (2021) World Energy Review
- IEA (2021) Net zero by 2050 – Executive
Summary
MIDTERM
/
No class – Spring
Break
/
No class – Spring
Break
/
8A. History of oil &
gas firms; standard oil,
international oil
companies, national oil
companies, petrostates,
shale
Readings:
- OIEA (2020) A comparative history of oil and gas
markets
- History of oil: https://ektinteractive.com/history-
of-oil/
Task:
- Submit bibliography list of sources to be used for
research note (by Monday evening)
8B. Guest Speaker:
Milo McBride (NYU)
on US shale
Readings:
- Maugeri (2013) The shale oil boom: Introduction,
part 7 and part 8
- Scholl (2019) The future of shale
Business and the Environment ï Dr. Tom Moerenhout
9
Task:
- Based on the readings, share 2 questions for the
guest speaker (by Tuesday evening)
9A. Fossil fuel
subsidies: definition,
target
(consumers/producters),
estimates, types
Readings:
- Moerenhout (2022) Energy subsidies draft
- Check http://fossilfuelsubsidytracker.org
- IMF (2021) Still not getting energy prices right:
executive summary
- OECD, IEA and G20 (2021) G20 fossil fuel
subsidies update: Executive summary &
preliminary findings on trends in fossil fuel
subsidies in 2020
9B. Guest Speaker:
Arjun Murti (Conoco
Phillips) on oil
companies and the
energy transition
Readings:
- IRENA (2021) Oil companies and energy
transition
- IEA (2021) The oil and gas industry in energy
transitions: Section III & Section 4
Task:
- Based on the readings, share 2 questions for the
guest speaker (by Tuesday evening)
10A. Renewable energy
subsidies: definition,
target, estimates, types
Readings:
- Moerenhout (2022) Energy subsidies draft
- REN21 (2021) Renewable energy status report: 02
Policy landscape Power & Systems integration of
variable renewable energy
10B. Guest Speaker:
TBC (Equinor) on oil
companies, renewable
energy, and the energy
transition
Readings:
- IRENA (2021) Oil companies and energy
transition
- UNESCWA (2021) Guidebook RE project
development: parts 3 and 4
Task:
- Based on the readings, share 2 questions for the
guest speaker (by Tuesday evening)
11A. Industrial policy
& local content;
international trade &
investment law
Readings:
- Kuntze and Moerenhout 2013) Local content
requirements: P1-19
- Johnstone et al (2021) Industrial policy
11B. Panel debate on
Development &
Sustainability in sub-
Saharan Africa
Readings:
- TBC
Task:
Business and the Environment ï Dr. Tom Moerenhout
10
- Based on the readings, share 2 questions for the
guest speaker (by Tuesday evening)
12A. Transport sector
decarbonization:
biofuels, electric
vehicles, batteries
Readings:
- ICCT (2018) Sustainability biofuels
- IEA (2021) Global EV Outlook: Executive
summary and Trends and developments in electric
light-duty vehicles
12B. Guest Speaker:
Albert Gore (Tesla) on
electric vehicles and
innovative business
models
Readings:
- IEA (2021) Global EV Outlook: Policies to
promote electric vehicle deployment
Task:
- Based on the readings, share 2 questions for the
guest speaker (by Tuesday evening)
13A. COVID 19
recovery; Innovation in
the energy transition;
Readings
- Check: http://energypolicytracker.org
- TBC
13B. Guest Speaker:
Vicente Loyola (World
Bank) on green
hydrogen
Readings:
- TBC
Task:
- Based on the readings, share 2 questions for the
guest speaker (by Tuesday evening)
14A. Energy transition
debate
/
14B. Conclusions &
B&E quiz
Task:
- Final deadline to submit research note (by
Wednesday evening)
FINAL
/