DescriptionRigorous, yet written in a way that facilitates 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.
Reviews"Environmental questions caught the attention of just a few economists in the late nineteen sixties and seventies. … The sole economics department in this mix was at the University of Chicago with George Tolley’s research group. Philip Graves, fresh out of graduate school, was there when it all started! He showed us how urban and environmental problems were linked. Then and now, with this new text, he continually demonstrates how creative use of micro economics can advance our understanding of the challenges in designing environmental policy."
—V. Kerry Smith, Arizona State University
"Phil Graves presents an integrated approach to environmental economics, covering the various multidisciplinary aspects of the subject, including the modeling of the impacts of pollutants on health and environment and the crucial subject of environmental policy and decision making. I find the book well written, with clear explanations, illustrated by examples. … Students can be inspired by this book to contribute as environmental economists towards bringing about a better environment."
—Ari Rabl, Ecole de Mines de Paris, France
"Professor Graves is an eminent environmental economist and has taken a fresh look at the state of knowledge in this very important field. … I expect the book to be of interest not only to students and researchers but to a general audience interested in what economics could bring to bear in solving the major environmental problems of the day."
—Ujjayant Chakravorty, Professor of Economics, Tufts University
"The broad philosophical perspective and parsimonious use of basic calculus to give precise focus creates a blend that students of environmental economics should find appealing and digestible. … likely to stimulate thinking and constructive discussion."
—Glenn Blomquist, University of Kentucky
Contents
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. Appendices.