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CONTENTS
Preface ... xi
Foreword / by Richard B. Norgaard ... xvi
About the Author ... xvii
About the Contributors ... xx
PART Ⅰ : ECONOMIC THEORY, CONCEPTS, AND METHODS ... 1
Chapter 1 : Compe...
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CONTENTS
Preface ... xi
Foreword / by Richard B. Norgaard ... xvi
About the Author ... xvii
About the Contributors ... xx
PART Ⅰ : ECONOMIC THEORY, CONCEPTS, AND METHODS ... 1
Chapter 1 : Competition, Monopoly, and Social Welfare ... 3
Introduction : Why Study Economics? ... 3
The Theory of Competitive Markets ... 5
Monopoly Pricing and Economic Rent ... 9
Environmental Externalities, Public Goods, and Economic Welfare ... 13
Questions for Discussion and Analysis ... 18
Appendix A : Glossary of Economic Concepts ... 19
Appendix B : Mathematical Illustration ... 21
Notes to Chapter 1 ... 23
Chapter 2 : Measuring Economic Welfare and Environmental Quality ... 25
GDP, GNP, and IPP : Is World Income Increasing? ... 25
Inflation, Real Income, and the Environmental Kuznets Curve ... 27
Environmental Accounting and the Index of Sustainable Welfare ... 31
Questions for Discussion and Analysis ... 35
Notes to Chapter 2 ... 36
References ... 37
Chapter 3 : Valuing the Environment and Benefit-Cost Analysis ... 39
Preface : One Historical Perspective ... 39
Measuring Environmental Benefits : Prospect Theory and Relative Gain ... 40
Contingent Valuation : The Economic Value of Environmental Benefits ... 42
The Travel Cost Method ... 45
Valuing Environmental Qualitys Impact on Real Estate : The Hedonic Approach ... 47
The Value of Life, Health, Risk, and Safety ... 48
Conclusion and Summary ... 52
Questions for Discussion and Analysis ... 54
Notes to Chapter 3 ... 55
Chapter 4 : Benefit-Cost Analysis and Discounting ... 57
Benefit-Cost Analysis : History and Applicability ... 57
Discounting and Interest Rates ... 58
Present Value or Annual Discounting? ... 60
The "Best" Efficient Level of Pollution Control ... 62
Social Versus Private Discounting ... 62
Eternity Discounting;Inflation and Real Interest Rates ... 66
Summary ... 66
Questions for Discussion and Analysis ... 67
Appendix : Discounting and Interest Rate Relationships ... 68
Notes to Chapter 4 ... 68
Chapter 5 : Equity, Environment, and Economics ... 71
What is, or What Ought to Be? ... 71
Economic Philosophy : Pareto and Compensation, Benefit-Cost Analysis, Rawls, and the Polluter Pays Principle ... 71
The Coase Theorem : Who Pays for Safe Water? ... 73
Environmental Justice and Economics ... 78
Summary ... 80
Questions for Discussion and Analysis ... 81
Notes to Chapter 5 ... 82
Chapter 6 : Economic Theory and Environmental Resources : An Introduction ... 85
Renewable Biological Resources : A Question of Sustainability ... 85
Finite Resources : Use and Depletion ... 93
Optimizing the Balance : Environmental Protection and Degradation ... 100
Summary ... 103
Questions for Discussion and Analysis ... 105
Notes to Chapter 6 ... 106
PART Ⅱ : RENEWABLE ENERGY ECONOMICS AND CONSERVATION ... 109
Chapter 7 : Personal and Household Energy : Economics and Environment ... 111
Introduction : Economics Has Promoted Conservation ... 111
Keeping Warm ... 112
Economics and Lighting ... 118
Economic Obstacles to Cost-Effective Conservation ... 120
Air Pollution and Home Heating ... 122
Questions for Discussion and Analysis ... 123
Appendix ... 124
Notes to Chapter 7 ... 125
Chapter 8 : Renewable Energy Economics / by Matthew Schwartz ; Duane Chapman ... 127
Solar Energy ... 128
Residential Solar Electricity ... 130
Developing Countries and Residential Solar Electricity ... 131
Large Solar and Renewable Electric Plants ... 132
Research or Development? Scale Economy, Technological Innovation, and Policy ... 133
Renewable and Alternative Transportation Fuels ... 135
Ethanol ... 136
Natural Gas ... 138
Electricity ... 138
Alternative Transportation Costs ... 138
Annual Fuel Cost ... 139
Total Annual Cost ... 139
Economic Incentives ... 140
Policies and Economics ... 142
Questions for Discussion and Analysis ... 143
Notes to Chapter 8 ... 143
PART Ⅲ : THE QUESTION OF GLOBAL RESOURCE LIMITATIONS ... 147
Chapter 9 : World Oil : A Strategic Limited Resource? ... 149
The Geologists Approach ... 151
The Economists Approach ... 153
Competition, Monopoly, or a Hybrid? ... 155
The Security Dimension, Hybrid Competition, and Came Theory ... 159
Can the Price of Oil Be Predicted? ... 162
In Conclusion : A Summary and a Very Brief Opinion-Editorial ... 164
Questions for Discussion and Analysis ... 164
Notes to Chapter 9 ... 165
Chapter 10 : The Limits to Growth Question : Industrial Resources Depletion, Recycling, and Population ... 169
The "Limits to Growth" Theory ... 170
Scarcity or Abundance : Metals and Energy Fuels ... 173
Recycling and Waste Disposal Economics ... 177
Population, Economics, and Environment ... 182
Summary and Conclusion ... 185
Questions for Discussion and Analysis ... 186
Notes to Chapter 10 ... 186
PART Ⅳ : RENEWABLE ENVIRONMENTAL RESOURCES : AIR AND WATER QUALITY, AGRICULTURE, AND FORESTRY ... 191
Chapter 11 : Air Pollution Control : Economics and Policy ... 193
A Success Story : Reduced Pollution Emissions ... 193
Concentration Levels and Health Standards ... 194
Improvement in Pollution Concentration and Exposure ... 197
Benefits and Costs of the Clean Air Act ... l99
Regulation and Marketable Permits : The Acid Rain Case ... 202
Conclusion ... 207
Questions for Discussion and Analysis ... 208
Appendix A : Complete Solutions to the Power and Copper SO₂ Reduction Problem ... 209
Notes to Chapter 11 ... 210
Chapter 12 : Water Quality Economics ... 213
Water Quality and the Environmental Kuznets Curve ... 213
Human Health ... 214
Ecosystem Protection and Wetlands ... 216
Economic Benefits of Water Quality Improvement in the Wllamette Basin and in National Water Supply ... 219
Water Quality Economics and Developing Countries ... 221
Conclusion ... 223
Questions for Discussion and Analysis ... 223
Notes to Chapter 12 ... 224
Chapter 13 : Agriculture, the Environment, and Economics(by Brent Sohngen and Duane Chapman) ... 227
Introduction ... 227
The Effect of Air Pollution on Agriculture ... 227
Environmental Impacts of Agriculture ... 228
The Hydrologic Cycle, Soil Erosion, and Nitrogen ... 228
Pesticides and Risk Assessment ... 230
Agriculture and the NIMBY Syndrome ... 233
Food Safety : A Risk Assessment of the Benefits and Costs of Meat Inspection ... 235
Reducing Agricultural Pollution : Policy Approaches in an Economic Framework ... 236
The Conservation Reserve Program ... 237
EQIP : A New Program ... 238
The Coase Theorem in Action : The Example of the New York City Water Supply ... 240
Tradable Water Pollution Permits : The Example of the Tar-Pamlico Basin in North Carolina ... 241
Sustainable Agriculture : What Is It? ... 242
Summary ... 243
Questions for Discussion and Analysis ... 244
Notes to Chapter 13 ... 245
Chapter 14 : Forestry Economics ... 247
What Is Sustainable Yield? ... 249
Profit and Forest Management ... 252
The Eastern Forest ... 256
Commercial Forestry and the Environment : Externalities, Air Pollution, and the Spotted Owl ... 258
Questions for Discussion and Analysis ... 261
Notes to Chapter 14 ... 262
PART V : THE GLOBAL ENVIRONMENT ... 265
Chapter 15 : Biodiversity and Endangered Species ... 267
Introduction ... 267
Scientific Background : The importance of Biodiversity ... 267
The Measurement of Biodiversity;the Definition of Endangered Species ... 269
Economic Assessment of Biodiversity and Protected Species ... 273
Spotted Owl Protection : Economic Dimensions ... 276
Emerging Issues and Conclusion ... 281
Questions for Discussion and Analysis ... 284
Appendix A : Biodiversity Survey : On Class Response ... 284
Notes to Chapter 15 ... 285
Chapter 16 : The Kruger National Park in a New South Africa ... 289
Introduction ... 289
The Positive Ledger : Conservation and Ecosystem Protection ... 289
Ecology and Management ... 290
Economic Problems and Opportunities : Hunting, the Poaching Problem the Ivory Ban ... 295
The Land Question, the Apartheid Legacy, and Livestock ... 299
Fees and Community Development ... 301
Contingent Valuation, Conclusion ... 303
Questions for Discussion and Analysis ... 304
Notes to Chapter 16 ... 304
Chapter 17 : Macroeconomics, Trade, and Environment ... 309
Introduction ... 309
Consumer Prices and Environmental Protection Costs ... 309
The Macroeconomic Approach to the Impact of Environmental Costs ... 312
Climate Change Policy and Macroeconomics ... 315
Trade, Pollution, and the Environmental Kuznets Curve : The Issues ... 316
Conclusion and Summary ... 323
Questions for Discussion and Analysis ... 324
Notes to Chapter 17 ... 325
Chapter 18 : Climate Change : Economics and Policy ... 329
Introduction : Economics, Science, and Uncertainty ... 329
The Nordhaus Geoeconomic Analysis ... 332
The Global Division : Income and Energy Use ... 336
Economic Policies ... 339
The Kyoto Protocol ... 340
Conclusion ... 342
Questions for Discussion and Analysis ... 344
Appendix : Understanding Solar Insolation and Climate Change ... 345
Notes to Chapter 18 ... 345
PART Ⅵ : ECOLOGICAL ECONOMICS, SUSTAINABILITY, AND ENVIRONMENT ... 349
Chapter 19 : Ecological Economics : An Emerging Alternative to Environmental Economics / by Jon Erickson ... 351
The Environment and the Economic Tradition ... 351
Environmental Economics : Running on Faith ... 353
The Evolution of Ecological Economics ... 353
Climate Change ... 356
A New Paradigm : Limits, Sustainable Development, Coevolution ... 360
Limits to Growth ... 361
Sustainable Development ... 363
Lessons from Coevoltion ... 365
Concluding Remarks : Choices and Change ... 367
Questions for Discussion and Analysis ... 368
Notes to Chapter 19 ... 368
Chapter 20 : Sustainability, Economy, and Environment / by Richard C. Bishop ; Richard T. Woodward ... 373
Sustainability in a Hardtack World ... 374
SustainabiIity in the Real World ... 379
Global Warming ... 383
Endangered Species ... 388
Sustainability and Economics : Final Thoughts ... 393
Questions for Discussion and Analysis ... 394
Notes to Chapter 20 ... 394
Appendix : An Economic Perspective on the Evolution of Environmental Legislation and Policy / by Andreo Kreiner ... 397
Index ... 403
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