Environmental Policy and the Economy

This volume focuses on issues of vital interest in environmental policy making. Knowledge is needed about the impacts of economic processes on the environment and vice versa; people's preferences regarding the environmental quality (including the availability of (non)renewable natural resources) must be known; and knowledge concerning the effectiveness and efficiency of the available policy instruments is essential. These issues are dealt with in various contributions on environmental-economic modelling, valuation of the environment, the design of environmental policies and the economic consequences of environmental policy.

1;Front Cover;1 2;Environmental Policy and the Economy;4 3;Copyright Page;5 4;Table of Contents;14 5;Preface;8 6;List of Contributors;10 7;Chapter 1. Environmental Policy and the Economy: An Introduction;16 7.1;1 Increasing Concern for Environmental Quality;16 7.2;2 Outline of the Volume;18 7.3;3 Issues for Further Research;29 7.4;References;31 8;PART I: ENVIRONMENTAL-ECONOMIC MODELLING;32 8.1;CHAPTER 2. THREE DECADES OF ENVIRONMENTAL-ECONOMICMODELLING: ECONOMIC MODELS OF POLLUTANT EMISSIONS;34 8.1.1;1 Introduction;34 8.1.2;2 Economy-Environment: A Systems Description 1;36 8.1.3;3 Economy-Emissions Models Based onInput-Output Analysis;38 8.1.4;4 Economy-Emissions Models Based on Materials Balances;44 8.1.5;5 Economy-Emissions Models Based on KLEM Production Functions;46 8.1.6;6 Integrative Economy-Emissions Models 2;47 8.1.7;7 Conclusions;56 8.2;CHAPTER 3. OPTIMAL GROWTH WITH STOCK POLLUTION;62 8.2.1;1 Introduction;62 8.2.2;2 The Model;64 8.2.3;3 The Existence and Uniqueness of the Steady State;66 8.2.4;4 Dynamic Properties of the Steady State;69 8.2.5;5 Summary and Conclusions;71 8.2.6;References;74 8.3;CHAPTER 4. AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF PLANET EARTH;76 8.3.1;1 Introduction;76 8.3.2;2 The Model 1;77 8.3.3;3 Brundtland Sustainability;82 8.3.4;4 Conclusions;84 8.3.5;References;88 9;PART II: VALUATION OF THE ENVIRONMENT;90 9.1;CHAPTER 5. PREFERENCE LEARNING AND CONTINGENT VALUATION METHODS;92 9.1.1;1 Introduction;92 9.1.2;2 Preference Learning;94 9.1.3;3 Experimental Design and Procedures;98 9.1.4;4 Experimental Results;101 9.1.5;5 Summary and Conclusions;104 9.1.6;References;106 9.2;CHAPTER 6. THE ECONOMIC VALUE OF WILDERNESS AREAS: AN APPLICATION TO THE KRUTILLA-FISHER MODEL TO SCOTLAND'S 'FLOW COUNTRY;110 9.2.1;1 Introduction;110 9.2.2;2 The Krutilla-Fisher Model;111 9.2.3;3 The Ecology of the Flow Country and the Problems of Afforestation;113 9.2.4;4 The Institutional Setting;118 9.2.5;5 The Contingent Valuation Survey;120 9.2.6;6 Ap
plying the Krutilla-Fisher Model;127 9.2.7;7 Conclusions;129 9.2.8;References;130 9.3;CHAPTER 7. ECOLOGICAL PERCEPTION AND DISTRIBUTIONAL CONFLICTS : A HISTORICAL VIEW;132 9.3.1;1 Some Limits of Ecological Rationality;132 9.3.2;2 Energy and the Economy: A Historical View;134 9.3.3;3 Raubwirtschaft, a Concept of Ecological Geography;138 9.3.4;4 Incommensurable Externalities;139 9.3.5;5 Ecological Economics and Marxism: A Post Mortem?;142 9.3.6;6 Positional Goods and Fordism in the Periphery;147 9.3.7;7 A Political Conclusion;149 9.3.8;References;150 10;PART III: ENVIRONMENTAL POLICY;154 10.1;CHAPTER 8. POLITICAL ECONOMY ASPECTS OF ENVIRONMENTAL POLICY INSTRUMENTS;156 10.1.1;1 Introduction;156 10.1.2;2 Environmental Policy as Economic Policy;157 10.1.3;3 The Playground Environmental Policy;159 10.1.4;4 Rent Seeking in the Framework of Environmental Policy;160 10.1.5;5 Conclusions;164 10.1.6;References;164 10.2;CHAPTER 9. LEGAL ASPECTS OF MARKETABLE POLLUTION PERMITS;166 10.2.1;1 Introduction;166 10.2.2;2 Objectives of this Paper;168 10.2.3;3 The Concept of a Permit Market;169 10.2.4;4 Juridical Principles for Regulation;170 10.2.5;5 Some Important Legal Aspects with Regard to the Design of a Permit Market;171 10.2.6;6 Provisions to Make the Market Work;177 10.2.7;7 Conclusions;178 10.2.8;References;179 10.3;CHAPTER 10. THE FIRM AS AN ACTOR IN AN ECOLOGICAL ECONOMY;182 10.3.1;1 Introduction;182 10.3.2;2 The Firm as a Maximising Machine in a Closed System: The Neoclassical View;183 10.3.3;3 The Firm as an Organisation in an Ecological Economy: An Evolutionary Approach;189 10.3.4;4 The Firm as an Element of Evolutionary Internalisation;198 10.3.5;5 Conclusions;208 10.3.6;References;208 11;PART IV: ECONOMIC CONSEQUENCES OF ENVIRONMENTAL POLICY;210 11.1;CHAPTER 11. CARBON TAXES AND THE UK MANUFACTURING SECTOR;212 11.1.1;1 Introduction;212 11.1.2;2 Background Literature;214 11.1.3;3 The Model;216 11.1.4;4 Description of Simulations;224 11.1.5;5 Conclusions;248 11.1.6;Refere
nces;253 11.2;CHAPTER 12. CONSEQUENCES OF AMMONIA EMISSION ABATEMENT POLICIES FOR AGRICULTURAL PRACTICE IN THE NETHERLANDS;256 11.2.1;1 Introduction;256 11.2.2;2 Nitrogen Flows and Policy Proposals;259 11.2.3;3 The Economic Model;269 11.2.4;4 Simulation Results;285 11.2.5;5 Final Remarks and Conclusions;293 11.2.6;References;293 11.3;CHAPTER 13. INNOVATION AND ENVIRONMENTAL QUALITY: THE CASE OF EC AND US AGRICULTURE;296 11.3.1;1 Introduction;296 11.3.2;2 The Model;298 11.3.3;3 Parameter Values and Data Sources;303 11.3.4;4 Effects of Technical Change;305 11.3.5;5 Conclusions;311 11.3.6;References;312 11.4;CHAPTER 14. ENVIRONMENTAL POLICY INSINGLE-PRODUCT AND JOINT PRODUCTION INPUT-OUTPUT MODELS;314 11.4.1;1 Introduction;314 11.4.2;2 Leontief's Extended System;315 11.4.3;3 A New System;323 11.4.4;4 The Commodity-By-Industry Accounts;330 11.4.5;5 A New Commodity-By-Industry System;337 11.4.6;6 Summary;340 12;INDEX;344