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Environmental & Natural Resource Economics (2-Downloads) Environmental & Natural Resource Economics 9th Edition The Pearson Series in Economics Abel/Bernanke/Croushore Hartwick/Olewiler O’Sullivan/Sheffrin/Perez Macroeconomics* The Economics of Natural Resource Use Economics: Principles, Applications and Tools* Bade/Parkin Heilbroner/Milberg Parkin Foundations of Economics* The Making of the Economic Society Economics* Berck/Helfand Heyne/Boettke/Prychitko Perloff The Economics of the Environment The Economic Way of Thinking Microeconomics* Microeconomics: Theory Bierman/Fernandez Hoffman/Averett and Applications with Calculus* Game Theory with Economic Applications Women and the Economy: Family, Work, Perman/Common/ McGilvray/Ma Blanchard and Pay Natural Resources and Environmental Macroeconomics* Holt Economics Blau/Ferber/Winkler Markets, Games and Strategic Behavior Phelps The Economics of Women, Men and Work Hubbard/O’Brien Health Economics Boardman/Greenberg/Vining/ Economics* Money and Banking* Pindyck/Rubinfeld Weimer Cost-Benefit Analysis Hughes/Cain Microeconomics* Boyer American Economic History Riddell/Shackelford/Stamos/ Principles of Transportation Economics Husted/Melvin Schneider Economics: A Tool for Critically Branson International Economics Understanding Society Macroeconomic Theory and Policy Jehle/Reny Ritter/Silber/Udell Brock/Adams Advanced Microeconomic Theory Principles of Money, Banking & The Structure of American Industry Financial Markets* Johnson-Lans Roberts Bruce A Health Economics Primer Public Finance and the American Economy The Choice: A Fable of Free Trade Keat/Young and Protection Carlton/Perloff Managerial Economics Modern Industrial Organization Rohlf Klein Case/Fair/Oster Introduction to Economic Reasoning Mathematical Methods for Economics Principles of Economics* Ruffin/Gregory Krugman/Obstfeld/Melitz Caves/Frankel/Jones Principles of Economics International Economics: Theory & Policy* World Trade and Payments: An Introduction Sargent Chapman Laidler Rational Expectations and Inflation Environmental Economics: The Demand for Money Sawyer/Sprinkle Theory, Application, and Policy Leeds/von Allmen International Economics Cooter/Ulen The Economics of Sports Scherer Law & Economics Leeds/von Industry Structure, Strategy, and Public Downs Allmen/SchimingEconomics* Policy An Economic Theory of Democracy Lipsey/Ragan/Storer Schiller Ehrenberg/Smith Economics* The Economics of Poverty and Discrimination Modern Labor Economics Lynn Sherman Ekelund/Ressler/Tollison Economic Development: Theory and Practice Market Regulation Economics* for a Divided World Silberberg Farnham Miller Principles of Microeconomics Economics for Managers Economics Today* Stock/Watson Folland/Goodman/Stano Understanding Modern Economics Introduction to Econometrics Introduction to The Economics of Health and Health Care Miller/Benjamin Econometrics, Brief Edition Fort The Economics of Macro Issues Studenmund Sports Economics Miller/Benjamin/North Using Econometrics: A Practical Guide Froyen The Economics of Public Issues Tietenberg/Lewis Macroeconomics Mills/Hamilton Environmental and Natural Resource Fusfeld Urban Economics Economics Environmental Economics and The Age of the Economist Mishkin Policy Gerber The Economics of Money, Banking, and Todaro/Smith International Economics* Financial Economic Development Gordon Markets* Waldman Macroeconomics* The Economics of Money, Microeconomics Greene Banking, and Financial Markets, Waldman/Jensen Econometric Analysis Business School Edition* Macroeconomics: Industrial Organization: Theory and Gregory Policy and Practice* Practice Essentials of Economics Murray Weil Gregory/Stuart Econometrics: A Modern Introduction Economic Growth Russian and Soviet Economic Nafziger Williamson Performance and Structure The Economics of Developing Countries Macroeconomics * denotes titles Log onto www.myeconlab.com to learn more Environmental & Natural Resource Economics 9th Edition Tom Tietenberg Emeritus, Colby College Lynne Lewis Bates College Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor-in-Chief: Donna Battista Executive Acquisitions Editor: Adrienne D’Ambrosio Editorial Project Manager: Jill Kolongowski Executive Marketing Manager: Lori DeShazo Marketing Assistant: Kimberly Lovato Senior Managing Editor (Production): Nancy Fenton Senior Production Project Manager: Meredith Gertz Permissions Coordinator: Michael Joyce Production Manager: Renata Butera Manufacturing Buyer: Renata Butera Cover Design: Bruce Kenselaar Cover Photo: Evantravels/Shutterstock Composition: Integra Software Services Pvt. Ltd Full-Service Project Management: Mogana, Integra Software Services Pvt. Ltd Printer/Binder: Edwards Brothers Cover Printer: Lehigh Phoenix Typeface: 10/12, Janson Text Copyright © 2012, 2009 by Pearson Education, Inc., publishing as Addison-Wesley. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Library of Congress Cataloging-in-Publication Data Tietenberg, Thomas H. Environmental & natural resource economics / Tom Tietenberg, Lynne Lewis. — 9th ed. p. cm. ISBN-13: 978-0-13-139257-1 (alk. paper) ISBN-10: 0-13-139257-3 (alk. paper) 1. Environmental economics. 2. Environmental policy. 3. Natural resources— Government policy. 4. Raw materials—Government policy. I. Lewis, Lynne. II. Title. III. Title: Environmental and natural resource economics. HC79.E5T525 2011 333.7—dc23 2011017669 ISBN-10: 0-13-139257-3 ISBN-13: 987-0-13-139257-1 Contents in Brief Preface xxi 1 Visions of the Future 1 2 The Economic Approach: Property Rights, Externalities, and Environmental Problems 16 3 Evaluating Trade-Offs: Benefit–Cost Analysis and Other Decision-Making Metrics 46 4 Valuing the Environment: Methods 74 5 Dynamic Efficiency and Sustainable Development 102 6 Depletable Resource Allocation: The Role of Longer Time Horizons, Substitutes, and Extraction Cost 118 7 Energy: The Transition from Depletable to Renewable Resources 140 8 Recyclable Resources: Minerals, Paper, Bottles, and E-Waste 180 9 Replenishable but Depletable Resources: Water 204 10 A Locationally Fixed, Multipurpose Resource: Land 237 11 Reproducible Private Property Resources: Agriculture and Food Security 262 12 Storable, Renewable Resources: Forests 293 13 Common-Pool Resources: Fisheries and Other Commercially Valuable Species 320 14 Economics of Pollution Control: An Overview 359 15 Stationary-Source Local and Regional Air Pollution 397 16 Climate Change 424 17 Mobile-Source Air Pollution 442 18 Water Pollution 471 19 Toxic Substances and Environmental Justice 508 20 The Quest for Sustainable Development 538 21 Population and Development 564 22 Visions of the Future Revisited 589 Answers to Self-Test Exercises 600 Glossary 623 Name Index 635 Subject Index 642 v Contents Preface xxi 1 Visions of the Future 1 Introduction 1 The Self-Extinction Premise 1 EXAMPLE 1.1 Historical Examples of Societal Self-Extinction 2 Future Environmental Challenges 3 Climate Change 3 Water Accessibility 4 Meeting the Challenges 5 How Will Societies Respond? 6 The Role of Economics 6 DEBATE 1.1 Ecological Economics versus Environmental Economics 7 The Use of Models 8 EXAMPLE 1.2 Experimental Economics: Studying Human Behavior in a Laboratory 9 The Road Ahead 9 The Issues 10 DEBATE 1.2 What Does the Future Hold? 11 An Overview of the Book 11 Summary 13 ● Discussion Questions 14 ● Self-Test Exercise 14 ● Further Reading 14 The Economic Approach: Property Rights, 2 Externalities, and Environmental Problems 16 Introduction 16 The Human–Environment Relationship 17 The Environment as an Asset 17 The Economic Approach 19 EXAMPLE 2.1 Economic Impacts of Reducing Hazardous Pollutant Emissions from Iron and Steel Foundries 20 vi Contents vii Environmental Problems and Economic Efficiency 20 Static Efficiency 20 Property Rights 22 Property Rights and Efficient Market Allocations 22 Efficient Property Rights Structures 23 Producer’s Surplus, Scarcity Rent, and Long-Run Competitive Equilibrium 24 Externalities as a Source of Market Failure 25 The Concept Introduced 25 Types of Externalities 26 EXAMPLE 2.2 Shrimp Farming Externalities in Thailand 27 Improperly Designed Property Rights Systems 28 Other Property Rights Regimes 28 Public Goods 31 Imperfect Market Structures 33 EXAMPLE 2.3 Public Goods Privately Provided: The Nature Conservancy 34 Government Failure 35 DEBATE 2.1 How Should OPEC Price Its Oil? 36 The Pursuit of Efficiency 38 Private Resolution through Negotiation 38 The Courts: Property Rules and Liability Rules 39 Legislative and Executive Regulation 41 An Efficient Role for Government 42 Summary 43 ● Discussion Questions 43 ● Self-Test Exercises 44 ● Further Reading 45 Evaluating Trade-Offs: Benefit–Cost Analysis 3 and Other Decision-Making Metrics 46 Introduction 46 Normative Criteria for Decision Making 46 Evaluating Predefined Options: Benefit–Cost Analysis 46 EXAMPLE 3.1
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