Markets and the environment

chapter 1. Introduction

chapter 2. Economic efficiency and environmental protection

chapter 3. The benefits and costs of environmental protection

chapter 4. The efficiency of markets

chapter 5. Market failures in the environmental realm

chapter 6. Managing stocks : natural resources as capital assets

chapter 7. Stocks that grow : the economics of renewable resource management

chapter 8. Principles of market-based environmental policy

chapter 9. The case for market-based instruments in the real world

chapter 10. Market-based instruments in practice

chapter 11. Sustainability and economic growth

chapter 12. Conclusion.

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.