Models and Frameworks

Abstract

I discuss theoretical and empirical models used in environmental economics in a basic manner. I discuss constrained optimization models with an example of a non-renewable resource that is depleted over two periods. I then briefly look at models that use game theory and differential equations. In the discussion of regression models, I use the idea of a causal graph to help distinguish between association and causality. I then briefly set out the institutions and development framework of Elinor Ostrom. I conclude with a framework for thinking about diverse models—both theoretical and statistical.