understanding of sometimes difficult material, this book provides practical and working knowledge of how environmental policy analysis is conducted in the United States and, to a lesser extent, elsewhere. It details the tools required to conduct that analysis and also discusses weaknesses in the existing methods, underlining areas for future improvement. This approach allows readers to get a sense of what is known and what is not known about environmental economics.
Basic Theory: Introduction. The Economy and the Environment: Uncontrolled Case. The Economy and the Environment: The Case of Optimal Controls. Alternative Regulatory Approaches.
Physical Effects: Optimal Controls in Real-World Settings: General Considerations. The Physical Effects of the Various Residuals: Air. The Physical Effects of the Various Residuals: Water. The Physical Effects of the Various Residuals: Solid Waste and Hazardous Materials.
Valuation of the Physical Effects: Overview of Valuation Methods. Environmental Valuation: Voting and Referenda. Environmental Valuation: Constructed Markets. Environmental Valuation: The Sum of Specific Damages Approach. Environmental Valuation: The Hedonic Method. Environmental Valuation: The Travel Cost Method. Do Decision-Makers "Care" about Efficiency and Equity?
The Role of Time and Benefit-Cost Analysis: The Role of Time in Economics: Interest Rates, Compounding, and Discounting. Benefit-Cost Analysis.