Markets and the Environment is a concise yet comprehensive introduction to a topic of central importance in understanding a wide range of environmental issues and policy approaches. It offers a clear overview of the fundamentals of environmental economics that will enable students and professionals to quickly grasp important concepts and to apply those concepts to real-world environmental problems. In addition, the book integrates normative, policy, and institutional issues at a principles level. Chapters examine: the benefits and costs of environmental protection, markets and market failure, natural resources as capital assets, and sustainability and economic development.
Markets and the Environment is the second volume in the Foundations of Contemporary Environmental Studies Series, edited by James Gustave Speth. The series presents concise guides to essential subjects in the environmental curriculum, incorporating a problem-based approach to teaching and learning.
Economics and the environment
Global climate change
Organization and content of this book
What we hope readers will take away from this book
2. Economic Efficiency and Environmental Protection
Efficiency and environmental policy
Equating benefits and costs on the margin
Dynamic efficiency and environmental policy
3. The Benefits and Costs of Environmental Protection
Evaluating the benefits
4. The Efficiency of Markets
Competitive market equilibrium
The efficiency of competitive markets
5. Market Failures in the Environmental Realm
The tragedy of the commons
6. Managing Stocks: Natural Resources as Capital Assets
Efficient extraction in two periods
A closer look at the efficient extraction path
The critical role of property rights
7. Stocks that Grow: The Economics of Renewable Resource Management
Economics of Forest Resources
8. Principles of Market-based Environmental Policy
Array of policy instruments
Market-based policies can overcome market failure
Is it preferable to set prices or quantities?
9. The Case for Market-Based Instruments in the Real World
Promoting technological change
Marked-based instruments for managing natural resources
10. Market Based Instruments in Practice
The U.S. sulfur dioxide market
Individual tradable quotas for fishing in New Zealand
Municipal water pricing
Water quality trading
Waste management: "Pay as you throw"
Habitat and land management
11. Sustainability and Economic Growth
Limits to Growth?
Sustainability, in Economic Terms
Keeping Track: Green Accounting
Are Economic Growth and Sustainability Compatible?
What does economics imply for environmental policy?
The role of firms, consumers, and governments
Some final thoughts