Environmental external effects are evidence of the inability of market prices to reflect the interdependence of economic activities undertaken within a common environment, and are an essential feature of all market economies. This book shows how external effects are produced by the interaction of the economy with its environment, using a classical mass-balance model.
"The journal is attractively produced and contains both applied and theoretical papers and a policy forum section in each of the first year's issues....the journal deserves a place on the library shelves of universities and government ministries of planning and resources." Neil Adger, Nature
Preface; Notation guide; 1. Introduction; Part I. The Physical Economy-Environment System: 2. Closed physical systems: a model; 3. Structure and time in the physical system; 4. Technological change and the environmental constraints to physical growth; Part II. The Economic System: 5. The price system; 6. Prices, property, and the environment; 7. Economic conflict and environmental change; Part III. Environmental Strategies in an Evolutionary Economy-Environment System: 8. Time, uncertainty, and external effects; 9. The market solution; 10. The stationary state; 11. Conclusions; References; Index.