Economics and the Environment / Edition 4

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Overview

"Economics and the Environment 6th Edition, provides a rigorous and comprehensive presentation of the "standard analysis," including the property-rights basis of environmental problems, efficient pollution control, benefit-estimation procedures, and incentive based procedures. This book examines a broad range of topics in environmental and natural resource economics. It presents in-depth treatment of important issues at the cutting edge of environmental policy debates. The focus is on equipping readers with the tools necessary to analyze current environmental issues as an economist would. Broader topics such as the ethical foundations of environmental economics, an introduction to ecological economics, a safety-based approach to controlling pollution, the economic critique of growth, the potential for government failure, the promotion of "clean technology," and opportunities for sustainable development in poor countries are all covered throughout the text."-- Provided by publisher.

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Editorial Reviews

Booknews
This textbook introduces the issues related to environmental policy debates and explains the economist's tools for analyzing them. It pairs the standard economic analysis with ethical and ecological concerns. The book considers the determination of acceptable levels of pollution, the government's abilities and limitations, the possibilities for improvement, and the resolution of global issues. Goodstein teaches at Lewis and Clark College. Annotation c. Book News, Inc., Portland, OR (booknews.com)
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Product Details

  • ISBN-13: 9780471470540
  • Publisher: Wiley, John & Sons, Incorporated
  • Publication date: 1/28/2004
  • Edition description: Older Edition
  • Edition number: 4
  • Pages: 560
  • Product dimensions: 7.76 (w) x 9.74 (h) x 1.04 (d)

Table of Contents

Preface

Introduction 1

Chapter 1 Four Economic Questions about Global Warming 3

1.0 Introduction 3

1.1 Four Questions 4

1.2 How Much Pollution Is Too Much? 8

1.3 Is Government Up to the Job? 13

1.4 How Can We Do Better? 14

1.5 Can We Resolve Global Issues? 16

1.6 Summary 18

Part I: How Much Pollution Is Too Much? 23

Chapter 2 Ethics and Economics 25

2.0 Introduction 25

2.1 Utility and Utilitarianism 26

2.2 Social Welfare 28

2.3 Summary 31

Chapter 3 Pollution and Resource Degradation as Externalities 34

3.0 Introduction 34

3.1 The Open Access Problem 36

3.2 The Public Goods Problem 41

3.3 Summary 44

Appendix 3A: Overfishing, ITQs, and Aquaculture 48

Chapter 4 The Efficiency Standard 53

4.0 Introduction 53

4.1 Efficiency Defined 53

4.2 Efficient Pollution Levels 56

4.3 Marginals and Totals 60

4.4 The Coase Theorem Introduced 62

4.5 Air Pollution Control in Baltimore: Calculating the Efficient Standard 63

4.6 The Ethical Basis of the Efficiency Standard 64

4.7 Summary 65

Chapter 5 The Safety Standard 72

5.0 Introduction 72

5.1 Defining the Right to Safety 73

5.2 The Safety Standard: Inefficient 75

5.3 The Safety Standard: Not Cost-Effective 76

5.4 The Safety Standard: Regressive? 78

5.5 Siting Hazardous Waste Facilities: Safety versus Efficiency 80

5.6 Summary 83

Chapter 6 Sustainability: A Neoclassical View 88

6.0 Introduction 88

6.1 Measuring Sustainability: Net National Welfare 90

6.2 Natural Capital Depreciation 93

6.3 Future Benefits, Costs, and Discounting 96

6.4 An Example of Discounting: Lightbulbs 98

6.5 Choosing the "Right" Discount Rate for Pollution Control 99

6.6 Social Discounting versus Market Discounting 102

6.7 Summary 106

Appendix 6A: Nonrenewable Resource Economics 101 111

Chapter 7 Sustainability: An Ecological View 117

7.0 Introduction 117

7.1 Malthus and Ecological Economics 119

7.2 Measuring Sustainability 122

7.3 The Precautionary Principle 124

7.4 Markets, Governments, and the Environmental Impact Statement 130

7.5 The Ecological-Neoclassical Debate in Context 132

7.6 Summary 134

Appendix 7A: Game Theory and the Safe Minimum Standard 138

Chapter 8 Measuring the Benefits of Environmental Protection 142

8.0 Introduction 142

8.1 Use, Option, and Existence Value: Types of Nonmarket Benefits 143

8.2 Consumer Surplus, WTP, and WTA: Measuring Benefits 144

8.3 Risk: Assessment and Perception 147

8.4 Measuring Benefits I: Contingent Valuation 150

8.5 Measuring Benefits II: Travel Cost 154

8.6 Measuring Benefits III: Hedonic Regression 156

8.7 The Value of Human Life 156

8.8 Summary 159

Appendix 8A: WTA and WTP Redux 164

Chapter 9 Measuring the Costs of Environmental Protection 168

9.0 Introduction 168

9.1 Engineering Costs 169

9.2 Productivity Impacts of Regulation 171

9.3 Employment Impacts of Regulation 174

9.4 Monopoly Costs 180

9.5 General Equilibrium. Effects 181

9.6 Summary 186

Chapter 10 Benefit-Cost in Practice: Implementing the Efficiency Standard 191

10.0 Introduction 191

10.1 Doing Benefit-Cost: Lead Standards 193

10.2 Doing Benefit-Cost: Landfill Regulation 200

10.3 Political Influence in Benefit-Cost 203

10.4 Is Benefit-Cost Up to the Job? 205

10.5 Summary 206

Chapter 11 Is More Really Better? Consumption and Welfare 212

11.0 Introduction 212

11.1 Money and Happiness 213

11.2 Social Norms and the Rat Race 214

11.3 Positional Goods and Consumption Externalities 218

11.4 Welfare with Social Consumption 220

11.5 Controlling the Impact of Consumption 222

11.6 Summary 225

Part II: Is Government Up To The Job? 231

Chapter 12 The Political Economy of Environmental Regulation 233

12.0 Introduction 233

12.1 The Process of Environmental Regulation 234

12.2 Regulation under Imperfect Information 236

12.3 Bureaucratic Discretion and Political Influence 238

12.4 Who Wins the Influence Game? 240

12.5 Political Reform of Regulation 243

12.6 Better Information, More Democracy 245

12.7 Summary 247

Chapter 13 An Overview of Environmental Legislation 252

13.0 Introduction 252

13.1 Cleaning the Air 253

13.2 Fishable and Swimmable Waters 257

13.3 Hazardous Waste Disposal on Land 259

13.4 Chemicals and Pesticides 263

13.5 Endangered Species Protection 266

13.6 Summary 267

Chapter 14 The Regulatory Record: Achievements and Obstacles 271

14.0 Introduction 271

14.1 Accomplishments of Environmental Regulation 271

14.2 Normative Criticisms of Regulation 275

14.3 Cost-Effectiveness Criticisms of Regulation 276

14.4 Beyond Regulation? Promoting Clean Technology 278

14.5 Summary 281

Chapter 15 Monitoring and Enforcement 284

15.0 Introduction 284

15.1 The Economics of Crime 284

15.2 The Economics of Punishment 287

15.3 The Compliance Record 290

15.4 The Political Economy of Enforcement 291

15.5 Citizen Enforcement 294

15.6 Cost-Effective Enforcement 295

15.7 Summary 295

Part III: How Can We Do Better? 301

Chapter 16 Incentive-Based Regulation: Theory 303

16.0 Introduction 303

16.1 The Cost-Effectiveness Rule 304

16.2 IB Regulation and Cost-Effectiveness 308

16.3 IB Regulation and Technological Progress 311

16.4 Potential Problems with 1B Regulation 313

16.5 Summary 320

Appendix 16A: Imperfect Regulation in an Uncertain World 324

Appendix 16B: Incentive-Compatible Regulation 330

Chapter 17 Incentive-Based Regulation: Practice 336

17.0 Introduction 336

17.1 Lead and Chlorofluorocarbons 337

17.2 Trading Urban Air Pollutants 338

17.3 Marketable Permits and Acid Rain 342

17.4 Recent U.S. Cap-and-Trade Moves: Mercury and Carbon Dioxide? 346

17.5 Carbon Trading in the United States 349

17.6 The European Emissions Trading System 351

17.7 Pollution Taxes and Their Relatives 353

17.8 Summary 357

Chapter 18 Promoting Clean Technology: Theory 362

18.0 Introduction 362

18.1 Path Dependence and Clean Technology. 363

18.2 Clean Technology Defined 365

18.3 If You're So Smart, Why Aren't You Rich? 368

18.4 Picking the Winning Path 372

18.5 Promoting Early-Stage Clean Technologies 373

18.6 Promoting Late-Stage Clean Technologies 376

18.7 Clean Technology: Two Case Studies 380

18.8 Summary 384

Chapter 19 Energy Policy and the Future 391

19.0 Introduction 391

19.1 Technology Options: Electricity and Heat 392

19.2 Policy Options: Electricity and Heat 400

19.3 Technology Options: Transport 405

19.4 Policy Options: Transport 410

19.5 Slowing Global Warming at a Profit? 414

19.6 Summary 417

Part IV: Can We Resolve Global Issues? 421

Chapter 20 Poverty, Population, and the Environment 423

20.0 Introduction 423

20.1 Poverty and the Environment 425

20.2 The Population Picture in Perspective 429

20.3 An Economic Approach to Family Size 432

20.4 Controlling Population Growth 433

20.5 Consumption and the Global Environment 438

20.6 Envisioning a Sustainable Future 441

20.7 Summary 444

Chapter 21 Environmental Policy in Poor Countries 448

21.0 Introduction 448

21.1 The Political Economy of Sustainable Development 449

21.2 Ending Environmentally Damaging Subsidies 451

21.3 Establishing and Enforcing Property Rights 453

21.4 Regulatory Approaches 456

21.5 Sustainable Technology: Development and Transfer 461

21.6 Resource Conservation and Debt Relief 464

21.7 Trade and the Environment 469

21.8 Summary 474

Chapter 22 The Economics of Global Agreements 480

22.0 Introduction 480

22.1 Agreements as Public Goods 481

22.2 Monitoring and Enforcement 482

22.3 The Ozone Layer and Biodiversity 484

22.4 Stopping Global Warming: Theory 489

22.5 Stopping Global Warming: Reality 493

22.6 Summary 495

Selected Web Sites 500

Author Index 503

Subject Index 506

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