Environmental Economics: In Theory and Practice / Edition 1

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Environmental Economics in Theory and Practice provides a thorough and coherent review and discussion of environmental economics. It is a guide to the most important areas of natural resource and environmental economics, including the economics of non-renewable and renewable resource extraction, the economics of pollution control, the application of cost-benefit analysis to the environment, and the economics of sustainable development. The book concentrates on key elements of economic theory, and shows how they can be applied to real-world problems. Particular emphasis is placed on analyzing recent empirical studies from all over the world along with in-depth coverage of various economic models. Each chapter develops the main theoretical results and recent analytic techniques necessary for understanding applications. Throughout the book, results are presented in words, graphs, and mathematical models; brief technical notes inform readers about optimal control theory, the Kuhn-Tucker conditions, game theory, and linear programming. Moving through the laws of thermodynamics to an analysis of market failure, the book turns to the economics of natural resources and pollution control. It concludes with an examination of environmental cost-benefit analysis and sustainable development. A comprehensive text, it is particularly suitable for use in advanced undergraduate and graduate courses in environmental and resource economics. Because of up-to-date coverage, it will also be of interest to professionals working in resource and environmental economics.

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Product Details

  • ISBN-13: 9780195212556
  • Publisher: Oxford University Press, USA
  • Publication date: 11/14/1996
  • Edition description: Older Edition
  • Edition number: 1
  • Pages: 480
  • Product dimensions: 9.19 (w) x 6.19 (h) x 1.45 (d)

Table of Contents

List of Figures
List of Tables
1. The Economy and the Environment: Two Parts of a Whole
1.1. Introduction
1.2. Interlinkages between the economy and the environment
1.3. The first two laws of thermodynamics
1.4. Conclusions
Technical note: game theory
2. Market Failure
2.1. Introduction
2.2. Incomplete markets
2.3. Externalities
2.4. Non-exclusion and the commons
2.5. Non-rivalry and public goods
2.6. Non-convexities
2.7. Asymmetric information
2.8. Concluding comments 3. Economic Incentives for Environmental Protection: An Overview
3.1. Introduction
3.2. Price rationing: charges and subsidies
3.3. Liability rules: non-compliance fees, bonds, and deposit refunds
3.4. Quantity rationing: marketable permits
3.5. Evaluative criteria
3.6. Practical conditions for use of economic incentives
3.7. Concluding remarks
Technical note: mathematical programming
4. Pollution Taxes for the Efficient Control of Pollution
4.1. Introduction
4.2. Efficiency properties of a tax on emissions
4.3. Problems with pollution taxes
4.4. Conclusions
5 Tradeable Pollution Permits
5.1. Introduction
5.2. The basic theory of tradeable pollution permits
5.3. Research issues in tradeable permit markets
5.4. Conclusions
6 Transboundary Pollution Problems
6.1. Introduction
6.2. Transboundary pollution as a problem of international externalities
6.3. Transboundary pollution and game theory
6.4. Conclusions
7 An Introduction to the Economics of Natural Resource Exploitation
7.1. Introduction
7.2. Elementary capital theory
7.3. The maximum principle of optional control theory
7.4. The application of the maximum principle to specific fishery management problems
7.5. The discrete-time maximum principle and dynamic programming
7.6. Wiener processes, Ito's processes and stochastic calculus
7.6. Summary
8 Natural Resources: Types, Classification and Scarcity
8.1. Natural resource types and classification
8.2. Measuring resource scarcity
8.3. Conclusions
9 An Economic Analysis of Non-renewable Natural Resources
9.1. Introduction 227
9.2. Market structure and the exploitation of non-renewable resources 228
9.3. Production technology and extraction costs 248
9.4. Applying the theory 258
9.5. Government policy towards non-renewable resource taxation
9.6. Uncertainty and the rate of resource extraction
9.7. Summary
10 Renewable Resource Economics
10.1. Introduction
10.2. Population growth models
10.3. Static models of fishery exploitation in continuous time
10.4. Static economic models of fisheries
10.5. Comparative dynamic models of fishing
10.6. Fisheries policy
10.7. Applying the theory and the discrete-time model
10.8. Extending the theoretical model
10.9. Strategic behaviour in fishery management
10.10. Fishing under undercertainty
10.11. Summary
11 The Economics of Forestry Exploitation
11.1. Introduction
11.2. The principles of commercial forestry economics
11.3. Multi-use forestry and the socially optimal forest rotation
11.4. Forestry land use and agriculture
11.5. Forest policies
11.6. The optimal forest rotation under uncertainty
11.7. Summary
12 The Theory of Non-market Valuation
12.1. Introduction
12.2. Measures of economic value
12.3. Valuing risk and ex ante measures of value
12.4. Issues in non-market valuation
12.5. Concluding comments
13 Methods for Valuing Environmental Costs and Benefits
13.1. Introduction
13.2. Direct methods of valuation
13.3. Indirect methods of valuation
13.4. Summary
14 The Economics of Sustainable Development
14.1. Introduction
14.2. Possible sustainability rule
14.3. Indicators of sustainability
14.4. The Common-Perrings model of sustainable development

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