List of Figures List of Tables
Introduction
1. The Economy and the Environment: Two Parts of a Whole
1.1. Introduction
1.2. Interlinkages between the economy and the environment
1.3. The first two laws of thermodynamics
1.4. Conclusions
Technical note: game theory
2. Market Failure
2.1. Introduction
2.2. Incomplete markets
2.3. Externalities
2.4. Non-exclusion and the commons
2.5. Non-rivalry and public goods
2.6. Non-convexities
2.7. Asymmetric information
2.8. Concluding comments 3. Economic Incentives for Environmental Protection: An Overview
3.1. Introduction
3.2. Price rationing: charges and subsidies
3.3. Liability rules: non-compliance fees, bonds, and deposit refunds
3.4. Quantity rationing: marketable permits
3.5. Evaluative criteria
3.6. Practical conditions for use of economic incentives
3.7. Concluding remarks
Technical note: mathematical programming
4. Pollution Taxes for the Efficient Control of Pollution
4.1. Introduction
4.2. Efficiency properties of a tax on emissions
4.3. Problems with pollution taxes
4.4. Conclusions
5 Tradeable Pollution Permits
5.1. Introduction
5.2. The basic theory of tradeable pollution permits
5.3. Research issues in tradeable permit markets
5.4. Conclusions
6 Transboundary Pollution Problems
6.1. Introduction
6.2. Transboundary pollution as a problem of international externalities
6.3. Transboundary pollution and game theory
6.4. Conclusions
7 An Introduction to the Economics of Natural Resource Exploitation
7.1. Introduction
7.2. Elementary capital theory
7.3. The maximum principle of optional control theory
7.4. The application of the maximum principle to specific fishery management problems
7.5. The discrete-time maximum principle and dynamic programming
7.6. Wiener processes, Ito's processes and stochastic calculus
7.6. Summary
8 Natural Resources: Types, Classification and Scarcity
8.1. Natural resource types and classification
8.2. Measuring resource scarcity
8.3. Conclusions
9 An Economic Analysis of Non-renewable Natural Resources
9.1. Introduction 227
9.2. Market structure and the exploitation of non-renewable resources 228
9.3. Production technology and extraction costs 248
9.4. Applying the theory 258
9.5. Government policy towards non-renewable resource taxation
9.6. Uncertainty and the rate of resource extraction
9.7. Summary
10 Renewable Resource Economics
10.1. Introduction
10.2. Population growth models
10.3. Static models of fishery exploitation in continuous time
10.4. Static economic models of fisheries
10.5. Comparative dynamic models of fishing
10.6. Fisheries policy
10.7. Applying the theory and the discrete-time model
10.8. Extending the theoretical model
10.9. Strategic behaviour in fishery management
10.10. Fishing under undercertainty
10.11. Summary
11 The Economics of Forestry Exploitation
11.1. Introduction
11.2. The principles of commercial forestry economics
11.3. Multi-use forestry and the socially optimal forest rotation
11.4. Forestry land use and agriculture
11.5. Forest policies
11.6. The optimal forest rotation under uncertainty
11.7. Summary
12 The Theory of Non-market Valuation
12.1. Introduction
12.2. Measures of economic value
12.3. Valuing risk and ex ante measures of value
12.4. Issues in non-market valuation
12.5. Concluding comments
13 Methods for Valuing Environmental Costs and Benefits
13.1. Introduction
13.2. Direct methods of valuation
13.3. Indirect methods of valuation
13.4. Summary
14 The Economics of Sustainable Development
14.1. Introduction
14.2. Possible sustainability rule
14.3. Indicators of sustainability
14.4. The Common-Perrings model of sustainable development
Index