Environmental Markets

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Markets are increasingly central to the resolution of environmental problems. They played a critical role in implementing the 1990 Clean Air Act of the United States, which has been instrumental in reducing acid rain in a cost-effective manner. They are also central to the global strategy adopted for limiting the emissions of greenhouse gases under the 1997 Kyoto Protocol and are being used for resolving conflicts over the use of other environmental resources, particularly water.

Environmental Markets: Equity and Efficiency represents the first systematic and in-depth study of the economic issues raised by this growing use of environmental markets. Focusing on the relationship between equity and efficiency--which is central to many of the debates between industrial and developing countries--the book explores the underlying economics and the possibilities for win-win solutions that benefit all parties to the problems.

Graciela Chichilnisky and Geoffrey Heal have been instrumental in developing the economic understanding required for the operation of environmental markets and for promoting their use among policy makers leading to the Kyoto Protocol. Contributors to this volume include established experts from international organizations, nongovernmental organizations, and academia, including Raúl Estrada-Oyuela, who chaired the negotiating committee of the Framework Convention on Climate Change and the 1997 Kyoto meetings.

Columbia University Press

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Editorial Reviews

Jean-Charles Hourcade
The novelty of Environmental Markets is that it addresses the sensitive question of the use of market forces to manage a public good such as climate on the basis of a very clear and deep use of the analytical tools of public economics.
Art Small
Given the sometimes addled state of current theory on the economics of climate change, Environmental Markets is a promising, timely, and welcome step forward.
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Product Details

Meet the Author

Graciela Chichilnisky holds the UNESCO Chair in Mathematics and Economics and is professor of statistics at Columbia University, where she is the director of the Program on Information and Resources and its Center for Risk Management. She introduced and developed the concept of "basic needs" and is the author of eleven books and some 180 scientific articles.Geoffrey Heal is Garrett Professor of Public Policy and Business Responsibility and professor of economics and finance of the Graduate School of Business at Columbia University. A past president of the Association of Environmental and Resource Economists, he is the author of many scientific articles and thirteen books, including Economic Theory and Exhaustible Resources; Valuing the Future: Economic Theory and Sustainability; and Nature and the Marketplace.

Columbia University Press

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Table of Contents

Appendix: The Kyoto Protocol to the United Nations Framework Convention on Climate ChangeFourteen: A Commentary on the Kyoto Protocol, by Raul Estrada OyuelaThirteen: Knowledge and the Environment: Markets with Privately Produced Public Goods, by ChichilniskyTwelve: The Clean Development Mechanism: Unwrapping the "Kyoto Surprise", by Jacob WerksmanEleven: Equity and Efficiency in Emission Markets: The Case for an International Bank for Environmental Settlements, by ChichilniskyTen: Securitizing the Biosphere, by Chichilnisky and HealNine: Efficiency and Distribution in Computable Models of Carbon Emission Abatement, by Joaquin Oliveira and Peter StrumEight: Differentiated or Uniform International Carbon Taxes: Theoretical Evidence and Procedural Constraints, by Jean-Charles Hourcade and Laurent GilloteSeven: Who Should Abate Carbon Emissions? An International Viewpoint, by Chichilnisky and HealSix: Efficiency Properties of a Constant-Ration Mechanism for the Distribution of Tradeable Emission Permits, by A. PrattFive: Equilibrium and Efficiency; International Emission Permits Markets, by Heal and Yun LinFour: Emission Constraints, Emission Permits & Marginal Abatement Costs, by HealThree: Equity and Efficiency in Environmental Markets: Global Trade in CO2 Emissions, by Chichilnisky, Heal, and D. StarrettTwo: Markets for Tradeable CO2 Emission Quotas: Principles and Practice, by Graciela Chichilnisky & Geoffrey HealOne: Introduction, by Graciela Chichilnisky & Geoffrey Heal

Columbia University Press

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