91568 - MINERAL RESOURCE ECONOMICS AND MANAGEMENT

Learning outcomes

The course aims at providing students with the tools to understand issues related to the economics and management of raw materials and its relationship with economic and environmental sustainability. To achieve this goal the course is organized into two distinct yet interrelated modules. In the first module the students will learn how to use and interpret models of resource extraction and harvesting and their implications in terms of pricing of raw materials, environmental pollution and sustainability of economic systems. In the second module, students will acquire a methodological toolkit to autonomously design, understand, and evaluate the economic costs of any venture or governmental initiative related to sustainable materials and their use. The course argues that sustainable business related to materials at its very heart is a matter of innovation because if businesses want to develop sustainable products, service, strategies and solutions they need to be good at innovating their products, services, business models, etc.

Course contents

The course aims at providing students with the tools to understand the economics and management of raw materials and its relationship with economic and environmental sustainability with particular reference to Climate Change threats, challenges and business opportunites. To achieve this goal the course is organized into two interrelated modules. In the first module the students will acquire the basic concepts and tools used in evaluating economic initiatives with specific reference to sustainability and impact investment. In this context business ethics issues will also be discussed. In the second module the students will acquire a methodological toolkit to autonomously understand, design, and evaluate the economic and environmental costs of any venture or governmental initiative related to the sustainable use of raw materials. The course argues that raw material economic efficiency must take into account the environmental imperative posed by the climate change and sustanability transition.

At the end of the course, students will be able to:

• Correctly build and quantitatively estimate the sustainable strategic positioning of a business or governmental initiative related to material and energy use.
• Critically evaluate and comment on Companies or Government sustainable claims.
• Design and evaluate with creativity and innovation business models of new ventures related to efficient use of raw materials

Readings/Bibliography

• Reading package
• Case study package
• Humphreys, D., The Remaking of the Mining Industry. Palgrave Macmillan, 2015, 250 pages.
• Allwood, J.M., and Cullen, J., Sustainable Materials - with both Eyes Open, Cambridge, 2012, Cambridge. Part I, II and III. Available also at http://www.withbotheyesopen.com/
• McKay, D. J., Sustainable Energy - without the Hot Air, UIT, Cambridge, 2008. Available also at http://www.withouthotair.com/. Part I, III and IV.
• Tirole, J., Economics for the Common Good, translated by Steven Rendall, Princeton University Press, Princeton, 2018. Chapters 2, 4 and 8.

Teaching methods

The course attempts to reach its learning objectives by offering a balanced menu of theory and business cases, internal discussions and guest speakers. The course will encompass the following elements: lectures by the instructor; group and individual case studies and assignments; interactive guest lectures; plenary discussions on selected sets of readings and in-class presentations by students.

Assessment methods

The individual performance is evaluated through individual assignments, the final written test and class participation.

The group’s performance is evaluated through a group assignment that will consist in the analysis of the mining company financial reports in the light of the UN 17 Global Goals for Sustainable Development. The students of the course are expected to bring business ideas related to efficient raw materials use and Global change mitigation that will be at the core of the business idea pitch that will be presented to a qualified panel during the course “Entrepreneurship and business models.” 

The grades in the Italian university system are expressed out of thirty. The passing grade is 18/30. In case of full grade (30/30) the Professor(s) may also decide to award honours (lode).

 

ASSESSMENT METHOD

WEIGHT ON FINAL GRADE

Class participation: 10%

Group assignment: 20%

Individual written outputs: essays, position papers, case studies: 40%

Written final test: 30%

Teaching tools

Case studies

Assignements

Guest speakers from industry

Office hours

See the website of Alessandro Pastore