Markets and the Environment (Foundations of Contemporary Environmental Studies Series)

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 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. Sheila M. Olmstead is assistant professor of environmental economics at the Yale School of Forestry and Environmental Studies. Nathaniel Keohane is assistant professor of economics at the Yale School of Management. Title Page......Page 6 Copyright Page......Page 7 Table of Contents......Page 8 Preface......Page 10 Economics and the Environment......Page 14 Global Climate Change......Page 15 Organization and Content of This Book......Page 19 What We Hope Readers Will Take Away from This Book......Page 22 Ch. 2: Economic Efficiency and Environmental Protection......Page 24 Economic Efficiency......Page 25 Efficiency and Environmental Policy......Page 32 Equating Benefits and Costs on the Margin......Page 34 Dynamic Efficiency and Environmental Policy......Page 40 Conclusion......Page 43 Measuring Costs......Page 44 Evaluting Benefits......Page 46 Benefit-Cost Analysis......Page 56 Conclusion......Page 65 Ch. 4: The Efficiency of Markets......Page 67 Competitive Market Equilibriunm......Page 68 The Efficiency of Competitive Markets......Page 72 Conclusion......Page 76 Ch. 5: Market Failures in the Environmental Realm......Page 78 Externalities......Page 79 Public Goods......Page 83 The Tragedy of the Commons......Page 89 Conclusion......Page 95 Ch. 6: Managing Stocks: Natural Resources as Capital Assets......Page 97 Economic Scarcity......Page 98 Efficient Extraction in Two Periods......Page 100 A Closer Look at the Efficient Extraction Path......Page 103 The Critical Role of Property Rights......Page 107 Conclusion......Page 110 Economics of Forest Resources......Page 111 Fisheries......Page 123 Conclusion......Page 134 Appendix......Page 135 Ch. 8: Principles of Market-Based Environmental Policy......Page 138 The Coase Theorem......Page 139 The Array of Policy Instruments......Page 142 How Market-Based Policies Can Overcome Market Failure......Page 146 Is It Preferable to Set Prices or Quantities?......Page 156 Conclusion......Page 164 Ch. 9: The Case for Market-Based Instruments in the Real World......Page 166 Reducing Costs......Page 167 Promoting Technological Change......Page 177 Marked-Based Instruments for Managing Natural Resources......Page 181 Other Considerations......Page 186 Conclusion......Page 193 Ch. 10: Market-Based Instruments in Practice......Page 195 The U.S. Sulfur Dioxide Market......Page 196 Individual Tradable Quotas for Fishing in New Zealand......Page 203 Municipal Water Pricing......Page 208 Water Quality Trading......Page 211 Waste Management: “Pay As You Throw”......Page 212 Habitat and Land Management......Page 214 Conclusion......Page 218 Ch. 11: Sustainability and Economic Growth......Page 220 Limits to Growth?......Page 221 Sustainability, In Economic Terms......Page 227 Keeping Track: Green Accounting......Page 234 Conclusions......Page 241 What Does Economics Imply for Environmental Policy?......Page 243 The Roles of Firms, Consumers, and Governments......Page 244 Some Final Thoughts......Page 245 Discussion Questions......Page 248 References......Page 256 Further Reading......Page 272 Index......Page 280 Markets And The Environment Is An Accessible Yet Comprehensive Introduction To Environmental Economics. It Examines The Benefits And Costs Of Environmental Protection, Markets And Market Failures, And Natural Resources As Capital Assets. With Clear Explanations Of Fundamental Concepts, It Offers Students A Broad Understanding Of A Wide Range Of Environmental Issues And Policy Approaches.--jacket. Introduction -- Economics And The Environment -- Global Climate Change -- Organization And Content Of This Book -- What We Hope Readers Will Take Away From This Book -- Economic Efficiency And Environmental Protection -- Economic Efficiency -- Efficiency And Environmental Policy -- Equating Benefits And Costs On The Margin -- Dynamic Efficiency And Environmental Policy -- Conclusion -- The Benefits And Costs Of Environmental Protection -- Measuring Costs -- Evaluating The Benefits -- Benefit-cost Analysis -- Conclusion -- The Efficiency Of Markets -- Competitive Market Equilibrium -- The Efficiency Of Competitive Markets -- Conclusion -- Market Failures In The Environmental Realm -- Externalities -- Public Goods -- The Tragedy Of The Commons -- Conclusions -- Managing Stocks: Natural Resources As Capital Assets -- Economic Scarcity -- Efficient Extraction In Two Periods -- A Closer Look At The Efficient Extraction Path -- The Critical Role Of Property Rights -- Conclusion --^ Stocks That Grow: The Economics Of Renewable Resource Management -- Economics Of Forest Resources -- Fisheries -- Conclusion -- 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? -- Conclusions -- The Case For Market-based Instruments In The Real World -- Reducing Costs -- Promoting Technological Change -- Marked-based Instruments For Managing Natural Resources -- Other Considerations -- Conclusions -- 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 -- Conclusions -- Sustainability And Economic Growth -- Limits To Growth? -- Sustainability, In Economic Terms -- Keeping Track: Green Accounting -- Are Economic Growth And Sustainability Compatible? --^ Conclusions -- Conclusion -- What Does Economics Imply For Environmental Policy? -- The Role Of Firms, Consumers, And Governments -- Some Final Thoughts. Nathaniel O. Keohane, Sheila M. Olmstead. Includes Bibliographical References And Index. __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 __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. Sheila M. Olmstead is assistant professor of environmental economics at the Yale School of Forestry and Environmental Studies. Nathaniel Keohane is assistant professor of economics at the Yale School of Management. 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.