Introduction to. Professor Nick Hanley Professor of Economics, University of Stirling

Transcription

1 Introduction to Environmental Economics Professor Nick Hanley Professor of Economics, University of Stirling Professor Jason F. Shogren Stroock Professor of Natural Resource Conservation and Management, University of Wyoming Dr Ben White Professor in the School of Agricultural and Resource Economics, University of Western Australia OXFORD UNIVERSITY PRESS

2 Detailed Contents List of Boxes List of Figu res List of Tables xiii xv xvii PART I: Economic Tools forthe Environment 1 Introduction: Economics forthe Environment The Economy and the Environment Key Insights from Economics ofwhich Environmental Scientists, Environmental Managers, and Politicians Should be Aware The Rest ofthis Book: An Overview Usingthis Book forteaching and Learning 9 2 Markets and the Environment The Power of Markets Market Failure Markets forthe Environment 23 3 Valuing the Environment: Concepts What Does Economic Value Mean? In What Sense Does the Environment Have Economic Value? Why Place Economic Values on the Environment? Cost-benefit analysis Other uses of environmental valuation 55 4 Valuing the Environment: Methods An Overview of the Methods Stated-preferenceApproaches Contingent valuation The choice experiment method Revealed-preference Approaches The hedonicpricing method Travel-cost models Production-function Approaches Benefits Transfer 78

3 X 5 Environmental Risk and Behaviour z 5.1 Rational Behaviour under Risk Behavioural Economics and Risk Valuing Risks to Life and Limb RegulatingRisk 99 6 Economic Growth, the Environment, and Sustainable Development Economic Growth and Development Why do economies grow? Growth versus development Predictions from the Past Growth and the Environment: The Environmental Kuznets Curve Broadening the Issue: The Economics of Sustainable Development Definitions of sustainable devefopment Sustainability rules? Measuring 'Sustainability' Green net national product Genuinesavings Other sustainability indicators Strategie Interactions and the Environment Introduction GameTheory Basic concepts The prisoner's dilemma Common property-the fisher's dilemma Self-governance-Escaping the Tragedy of the Commons Repeated Fishing Games Co-operative Games GameTheory and Transboundary Pollution Control Introduction The acid rain game Trade and the Environment Introduction Why do Countries Gain from Trade? Extending the basic trade model to include the environment Trade and the environment Empirical Evidenceon the Trade Effects of Environmental Regulation International Trade Agreements and the Environment International trade agreements -jgr Multilateral environmental agreements and trade 167

4 xi PART II: Applying the Tools 9 The Economics of ClimateChange Introduction A Global Environmental Risk The Challenge of International Coordination The Benefits and Costs of International Co-operation Economic Issues Underlying Benefit and Cost Estimates A FlexibiIity-Stringency Trade-off Forests Introduction Local benefits National benefits Global benefits Forest Distribution and Losses Why is Rainforest Lost? Economic Theories of Deforestation Tropical Deforestation and Poverty Forestry Management How Much Natural Forest Should be Preserved? The optimal areaof natural forest foraregion Policies for Rainforest Conservation International policy The Global Environment Facility (GEF), REDD, and REDD How affective are international policies? National and local policies The Economics of Water Pollution Introduction Trends overtime The Costs of Water Pollution Control Non-pointSource Water Pollution: A Difficult Problem to Solve Measuring Water-quality Benefits Problems for Cost-benefit Analysis of Water-quality Improvements Identifying the water-quality change to bevalued Problems in pricing the environmental change, once identified Biodiversity Introduction What to Conserve? Economic insights into conservation objectives Allocatingresources between species and ecosystems 238

5 xii 12.3 Values of Biodiversity Direct values Bioprospectingfordrugs Ecosystem service values Aesthetic use and non-use values Biodiversity and Conservation Policy International policy National policies are more chailenging Non-renewable Natural Resources and Energy Natural Resource Types The Extraction ofa Non-renewable Resource The baseline case-an introduction to Hotelling's rule Resource extraction and the monopolist Model including extraction costs Measuring Resource Scarcity Resource lifetime Unitcostmeasures Real prices Economic rent Hotelling and the oil market Global Energy Demand and Supply Global Issues in Energy Policy 279 Glossary 286 Index 291