Using STELLA simulation models to teach natural resource economics

Abstract

In this article, the author discusses how graphical simulation models created using STELLA software can be used to present natural resource systems in an intuitive way in undergraduate natural resource economics classes based on his experiences at a leading research university, a state university, and a leading liberal arts college in the United States. The models allow students to develop an intuitive understanding of the economic aspects of natural resource systems. The author provides a short introduction to STELLA and then presents an economic model of the fishery in detail as an example of how models can be used in a classroom. He then discusses how he incorporates STELLA into his natural resource economics course, and closes the article by comparing STELLA with alternate methods.

Keywords:

• Active learning
• natural resource economics
• natural resource systems
• simulation models
• STELLA
• teaching economics

JEL codes:

• A20
• Q20
• Q30

Acknowledgements

The author expresses his gratitude to Hayri Önal, Noelwah Netusil, Richard Brazee, and students from multiple classes at the University of Illinois, Portland State University, and Colby College. He also expresses gratitude to Joseph Moseley, Angela W. Anderson, James Siderius, Yuzhe (Harry) Geng, Meagan Hennessey, Sarah Whitney, and Jeremy Revenelle, who worked on independent STELLA projects that helped motivate this article. The author acknowledges helpful comments received from two anonymous referees, the handling editor and the editor for the Journal of Economic Education, and participants at the American Economic Association (AEA) Conference on Teaching and Research in Economic Education (CTREE) and the Agricultural and Applied Economics Association Annual Meeting (AAEA).

Notes

1. ISEE Systems, the developers of STELLA, offer multiple licensing options. More information is available on the developer's Web site at http://www.iseesystems.com/softwares/Education/ StellaSoftware.aspx.

2. The model can be obtained by contacting the author and also is included in the longer version of this article available on the author's Web site.

3. In this model, optimality is defined as having the highest stable human population.