Wiley.com
Print this page Share
Textbook

Economics and the Environment, 8th Edition

September 2017, ©2018
Economics and the Environment, 8th Edition (EHEP003709) cover image

Description

TRY (FREE for 14 days), OR RENT this title: www.wileystudentchoice.com

Climate change has morphed from an environmental problem into a challenge to civilization itself. As CO2 levels have continued to rise, the 8th Edition of this book is now more relevant than ever. Retaining the approach of the original edition, the newest iteration features global warming as the framing example for a comprehensive look at environmental economics. Pedagogical clarity is ensured by the book’s central focus on four highly-focused questions: How much pollution is too much? Is the government up to the job? How can we do better? How can we resolve global issues? The text also continues with a strong focus on natural resources economics and ecosystem services. Updates to the book are included to address the very latest concerns, standards, and legislation related to environmental issues, providing students with a comprehensive look at this important topic while maintaining an accessible approach that makes the material engaging and highly relevant.
See More

Table of Contents

Preface xi

INTRODUCTION 1

Chapter 1 Four Economic Questions About Climate Change 2

1.0 Introduction 2

1.1 Four Questions 3

1.2 How Much Pollution Is Too Much? 6

1.3 Is Government Up to the Job? 10

1.4 How Can We Do Better? 11

1.5 Can We Resolve Global Issues? 13

1.6 Summary 15

PART I: HOW MUCH POLLUTION IS TOO MUCH? 19

Chapter 2 Ethics and Economics 20

2.0 Introduction 20

2.1 Utility and Utilitarianism 21

2.2 Social Welfare 23

2.3 Summary 25

Chapter 3 Pollution and Resource Degradation as Externalities 28

3.0 Introduction 28

3.1 The Open Access Problem 30

3.2 The Public Goods Problem 34

3.3 Is Sustainable Business a Solution? 37

3.4 Summary 38

Chapter 4 The Efficiency Standard 42

4.0 Introduction 42

4.1 Efficiency Defined 42

4.2 Efficient Pollution Levels 45

4.3 Marginals and Totals 48

4.4 The Coase Theorem Introduced 50

4.5 Air Pollution Control in Baltimore: Calculating the Efficient Standard 51

4.6 The Ethical Basis of the Efficiency Standard 52

4.7 Real-World Benefit–Cost Analysis 53

4.8 Summary 56

Chapter 5 Measuring the Benefits of Environmental Protection 66

5.0 Introduction 66

5.1 Use, Option, and Existence Value: Types of Nonmarket Benefits 67

5.2 Consumer Surplus, WTP, and WTA: Measuring Benefits 67

5.3 Risk: Assessment and Perception 70

5.4 Measuring Benefits I: Contingent Valuation 73

5.5 Measuring Benefits II: Travel Cost 76

5.6 Measuring Benefits III: Hedonic Regression 78

5.7 The Value of Human Life 78

5.8 Summary 80

Appendix 5A: WTA and WTP Redux 86

5A.1: An Indifference Curve Analysis 86

5A.2: Prospect Theory or Substitutability? 88

Chapter 6 Measuring the Costs of Environmental Protection 90

6.0 Introduction 90

6.1 Engineering Costs 91

6.2 Productivity Impacts of Regulation 93

6.3 Employment Impacts of Regulation 95

6.4 General Equilibrium Effects and the Double Dividend 100

6.5 A Final Look at Benefit–Cost Analysis 101

6.6 Summary 104

Chapter 7 The Safety Standard 109

7.0 Introduction 109

7.1 Defining the Right to Safety 109

7.2 The Safety Standard: Inefficient 112

7.3 The Safety Standard: Not Cost-Effective 113

7.4 The Safety Standard: Environmental Justice or Regressive Impact? 114

7.5 Siting Hazardous Waste Facilities: Safety versus Efficiency 116

7.6 Summary 119

Chapter 8 The Sustainability Standard 124

8.0 Introduction 124

8.1 Sustainability: Neoclassical and Ecological Approaches 125

8.2 Future Benefits, Costs, and Discounting 128

8.3 An Example of Discounting: Light Bulbs 130

8.4 Savings, Investment, and Market Interest Rates 131

8.5 The Social Discount Rate and Dynamic Efficiency 132

8.6 Discounting Climate Change 135

8.7 Ecological Economics, Strong Sustainability, and the Precautionary Principle 136

8.8 Strong Sustainability in Practice: Endangered Species, EIS, and Reach 138

8.9 Summary 139

Chapter 9 Measuring Sustainability 145

9.0 Introduction 145

9.1 Malthus and Ecological Economics 146

9.2 Modern Debates: Limits to Growth and Planetary Boundaries 148

9.3 Measuring Strong Sustainability: Impacts and Footprints 150

9.4 Measuring Weak Sustainability: Net National Welfare and Inclusive Wealth 154

9.5 Natural Capital Depreciation 158

9.6 Are We Achieving Sustainability? 161

9.7 Discounting, Sustainability, and Investing for the Future 165

9.8 The Ecological–Neoclassical Debate in Context 166

9.9 Summary 168

Chapter 10 Natural Resources and Ecosystem Services 175

10.0 Introduction 175

10.1 Nonrenewable Resources and the Hotelling Model 176

10.2 Testing the Nonrenewable Resource Model 182

10.3 The Roller Coaster Ride of Oil Prices 183

10.4 Peak Oil? 184

10.5 Renewable Resources 187

10.6 Renewable Resource Policy: Fisheries and Endangered Species 192

10.7 Ecosystem Services and Natural Capital 195

10.8 Summary 198

Chapter 11 Is More Really Better? Consumption, Welfare, and Behavior 205

11.0 Introduction 205

11.1 Money and Happiness 206

11.2 Social Norms and the Rat Race 207

11.3 Positional Goods and Consumption Externalities 210

11.4 Welfare with Social Consumption 212

11.5 Overconsumption Policy Solutions 213

11.6 Behavioral Economics and Behavior Change 216

11.7 Summary 217

PART II: IS GOVERNMENT UP TO THE JOB? 221

Chapter 12 The Political Economy of Environmental Regulation 223

12.0 Introduction 223

12.1 The Process of Environmental Regulation 224

12.2 Regulation under Imperfect Information 226

12.3 Bureaucratic Discretion and Political Influence 227

12.4 Who Wins the Influence Game? 229

12.5 Political Reform of Regulation 231

12.6 Better Information, More Democracy 233

12.7 Summary 235

Chapter 13 An Overview of Environmental Legislation 239

13.0 Introduction 239

13.1 Cleaning the Air 240

13.2 The Clean Air Act and Climate Change 243

13.3 Fishable and Swimmable Waters 245

13.4 Hazardous Waste Disposal on Land 247

13.5 Chemicals and Pesticides 250

13.6 Endangered Species Protection 252

13.7 Summary 254

Chapter 14 The Regulatory Record: Achievements and Obstacles 258

14.0 Introduction 258

14.1 Accomplishments of Environmental Regulation 258

14.2 Monitoring and Enforcement: Political Constraints 262

14.3 The Appeal of Incentive-Based Regulation 265

14.4 Beyond Regulation? Promoting Clean Technology 267

14.5 Summary 269

PART III: HOW CAN WE DO BETTER? 273

Chapter 15 Incentive-Based Regulation: Theory 274

15.0 Introduction 274

15.1 The Cost-Effectiveness Rule 275

15.2 IB Regulation and Cost-Effectiveness 278

15.3 IB Regulation and Technological Progress 281

15.4 Potential Problems with IB Regulation 282

15.5 Summary 288

Appendix 15A: Imperfect Regulation in an Uncertain World 291

15A.0: Minimizing the Costs of Being Wrong 292

15A.1: An Application to Greenhouse Gas Emissions 294

15A.2: Summary 295

Appendix 15B: Incentive-Compatible Regulation 296

15B.0: Incentives to Lie 297

15B.1: Incentives to Tell the Truth 298

15B.2: Summary 300

Chapter 16 Incentive-Based Regulation: Practice 302

16.0 Introduction 302

16.1 Lead and Chlorofluorocarbons 303

16.2 Trading Urban Air Pollutants 303

16.3 Marketable Permits and Acid Rain 307

16.4 Carbon Trading in the Northeast and California 310

16.5 Two Failed U.S. Efforts: Mercury and Carbon 313

16.6 The European Emissions Trading System 315

16.7 Pollution Taxes and Their Relatives 316

16.8 Summary 320

Chapter 17 Promoting Clean Technology: Theory 325

17.0 Introduction 325

17.1 Path Dependence and Clean Technology 326

17.2 Clean Technology Defined 327

17.3 If You’re So Smart, Why Aren’t You Rich? 330

17.4 Picking the Winning Path 333

17.5 Promoting Early-Stage Clean Technologies 335

17.6 Promoting Late-Stage Clean Technologies 337

17.7 Clean Technology: Two Case Studies 340

17.8 Summary 344

Chapter 18 Energy Policy and the Future 350

18.0 Introduction 350

18.1 Technology Options: Electricity and Heat 351

18.2 Policy Options: Electricity and Heat 357

18.3 Technology Options: Transport 361

18.4 Policy Options: Transport 366

18.5 Summary 369

PART IV: HOW CAN WE SOLVE GLOBAL CHALLENGES? 373

Chapter 19 Poverty, Population, and the Environment 374

19.0 Introduction 374

19.1 Poverty and the Environment 376

19.2 The Population Picture in Perspective 379

19.3 An Economic Approach to Family Size 381

19.4 Controlling Population Growth 382

19.5 Consumption and the Global Environment 386

19.6 Envisioning a Sustainable Future 388

19.7 Summary 390

Chapter 20 Environmental Policy in Low-Income Countries 394

20.0 Introduction 394

20.1 The Political Economy of Sustainable Development 394

20.2 Ending Environmentally Damaging Subsidies 397

20.3 Establishing and Enforcing Property Rights 399

20.4 Regulatory Approaches 401

20.5 Sustainable Technology: Development and Transfer 405

20.6 Resource Conservation and Debt Relief 408

20.7 Trade and the Environment 412

20.8 Summary 417

Chapter 21 The Economics of Global Agreements 421

21.0 Introduction 421

21.1 Agreements as Public Goods 422

21.2 Monitoring and Enforcement 423

21.3 The Ozone Layer and Biodiversity 424

21.4 Stopping Global Warming: Theory 428

21.5 Stopping Global Warming: Reality 431

21.6 Summary 433

Selected Web Sites for Environmental and Natural Resource Economists 438

Author Index 439

Subject Index

See More

New To This Edition

New to this Edition:
  • Includes a new section on behavioral economics, along with insights for policy changes within organizations
  • Features a look at the "Climate Club" model recently developed by William Nordhaus
  • Offers a look at the Flint, Michigan case in the discussion of environmental justice
  • Provides an updated discussion of California's CO2 emission trading and the EU ETS
See More

The Wiley Advantage

Wiley Advantage:
  • Features a rigorous, comprehensive presentation of efficient pollution control, benefit-estimation procedures, and incentive-based regulation
  • Provides pedagogical clarity centered on clearly focused questions
  • Offers a broad overview of the subject matter, as well as timely, well-integrated examples
  • Fills a major void by exploring whether governments are up to the challenge of addressing climate and pollution challenges
  • An online instructor's manual provides chapter-by-chapter suggestions for teaching from the book
See More
Instructors Resources
Wiley Instructor Companion Site
Request a print evaluation copy
Contact us
Contact your Wiley Representative
Find Your Rep
See More
See Less
Purchase Options
Wiley E-Text   
Economics and the Environment, 8th Edition
ISBN : 978-1-119-39774-8
468 pages
September 2017, ©2018
$64.00   BUY

Paperback   
Economics and the Environment, 8th Edition
ISBN : 978-1-119-36986-8
464 pages
September 2017, ©2018
$128.95   BUY

Related Titles

Back to Top