Environmental Economics: An Integrated Approach - Rilegato

"The style and coverage of the book make it perfect as a set text on an undergraduate course in environment economics. It can also function as a practical guide to the application of environmental evaluation. The expert analysis of the limitations of evaluation tools will also make it of interest and value to more experienced readers. Very highly recommended."
―Gareth Myles, University of Exeter

"The textbook offers many interesting examples and cases that conceptualize the environmental economics issue and its connotations. I recommend reading the book for those who are interested in the topic and want to study in modern and interactive way."
―Ondrej Vojacek, University of Economics, Prague

"Environmental questions caught the attention of just a few economists in the late nineteen sixties and seventies. ... The sole economics department in this mix was at the University of Chicago with George Tolley’s research group. Philip Graves, fresh out of graduate school, was there when it all started! He showed us how urban and environmental problems were linked. Then and now, with this new text, he continually demonstrates how creative use of micro economics can advance our understanding of the challenges in designing environmental policy."
―V. Kerry Smith, Arizona State University

"Phil Graves presents an integrated approach to environmental economics, covering the various multidisciplinary aspects of the subject, including the modeling of the impacts of pollutants on health and environment and the crucial subject of environmental policy and decision making. I find the book well written, with clear explanations, illustrated by examples. ... Students can be inspired by this book to contribute as environmental economists towards bringing about a better environment."
―Ari Rabl, Ecole de Mines de Paris, France

"Professor Graves is an eminent environmental economist and has taken a fresh look at the state of knowledge in this very important field. ... I expect the book to be of interest not only to students and researchers but to a general audience interested in what economics could bring to bear in solving the major environmental problems of the day."
―Ujjayant Chakravorty, Professor of Economics, Tufts University

"The broad philosophical perspective and parsimonious use of basic calculus to give precise focus creates a blend that students of environmental economics should find appealing and digestible. ... likely to stimulate thinking and constructive discussion."
―Glenn Blomquist, University of Kentucky

Section 1 Environmental Policy with Perfect Information: The Basic Theory Introduction
Introduction
A Taxonomy of Types of Goods
The Externalities, Public Goods, and Property Rights Connection
Market Failure or Missing Markets?
Alternative Regulatory Approaches
Summary and Looking Forward
References
Appendix

The Economy and the Environment: Uncontrolled Case (Pre-Institution)
Introduction
The Polluting Household
The Polluting Firm
The Aggregate Economy
The Aggregate Environment
Summary and Looking Forward
Reference

The Economy and the Environment: The Case of Optimal Controls (Post-Institution)
Introduction
The Household with Optimal Pollution Controls
The Firm with Optimal Pollution Controls
The Optimal Aggregate Economy
The Optimal Aggregate Environment
Summary and Looking Forward

The Provision of Public Goods (Pre- and Post-Institution)
Introduction
The Lighthouse Example and Vertical Demand Aggregation
Financing and Issues of Equity
Summary and Looking Forward
Reference

The Role of Time in Economics: Interest Rates, Compounding, and Discounting
Introduction
The Interest Rate as the Opportunity Cost of Current Consumption
Constant Value, Appreciating Value, and Depreciating Value Assets
Summary and Looking Forward

Benefit-Cost Analysis with Perfect Information
Introduction
A Representative Project and the Net Present Value Decision Criterion
B/C Ratios and Internal Rate of Return Criteria May Mis-RankProjects
Summary and Looking Forward

Section 2 Environmental Policy with Imperfect Information7. Information Difficulties: The Individual Household and theBenefits of Environmental Policies
Introduction
The Difficulty of Knowing Marginal Damages from Residuals
The Crucial Nature of Environmental Quality Perceptions
Summary and Looking Forward
Reference

Information Difficulties: The Individual Firm and the Costs ofEnvironmental Policies
Introduction
Types of Environmental Policy Costs
The Economic Incentive Approach
Summary and Looking Forward

Information Difficulties: The Policy Maker
Introduction
The Well-Known “Demand Revelation” Problem out ofa Given Income
A Less Well-Known “Input Market Demand Revelation” Problem
A False and a True Dynamic Scenario
Much Ado about Nothing?
Summary and Looking Forward
References

Section 3 Valuation—Acquiring Information about Environmental Benefits10. Environmental Valuation: Overview
Introduction
Referenda
Constructed Markets: Surveys, Interviews, and Experiments
Sum of Specific Damages
The Hedonic Method
The Travel Cost Method
Overview of Valuation Problems with the Methodologies in Use
Summary and Looking Forward

Environmental Valuation: Voting on Environmental Referenda
Introduction
Voting Does Not Reflect Intensity of Wants
Voting Paradoxes: Intransitivities
Other Problems with Voting
Summary and Looking Forward

Environmental Valuation: Constructed Markets
Introduction
The Conduct of a Constructed Market Study
Problems in Interpretation of Constructed Market Valuations
Summary and Looking Forward
References

Environmental Valuation: The Sum of Specific Damages Approach
Introduction
Problems with the Sum of Specific Damages Approach
Summary and Looking Forward
Reference

Environmental Valuation: The Hedonic Method
Introduction
Value of Statistical Life
Hedonic Valuation of Environmental Quality
Wage Compensation for Environmental Amenities
Property Value Compensation for Environmental Amenities
Wage and Property Value Hedonics Are Not Alternatives: The Multimarket Hedonic Method
What if Single-Market Hedonic Analyses Are Employed Rather Than Multimarket Analyses?
Summary and Looking Forward
References

Environmental Valuation: The Travel Cost Method
Introduction
Problems with the Travel Cost Method
Summary and Looking Forward
References

Do Decision Makers "Care" about Efficiency and Equity?
Introduction
Political Incentives to Undervalue the Environment
Jurisdictional Incentives to Undervalue the Environment
Summary and Looking Forward
References

The Impact of Concerns about Equity on Environmental Policy
Introduction
Equity at a Point in Time
Equity over Time: Intergenerational Considerations
Summary and Looking Forward
Reference

An Interdisciplinary Environmental Policy AnalysisMethodology
Introduction
The 5-Box Diagram
Summary and Looking Forward
References

Section 4 Epilogue1
An Overall Assessment of the State of Environmental Policy Making
Introduction
Policy Costs
Policy Benefits
Summary and Looking Forward
Reference

The Past and the Future
Introduction
The Doomsters
The Boomsters
Balancing the Disparate Views
The Porter Hypothesis
The Environment as an Asset in a Broader Portfolio Context
Summary and Looking Backward
References
Index