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It is the Lecture Slides of Environmental Economics which includes Introduction, Environmental Policy, Economics Of Environmental Quality, Economics of Environmental Policy etc. Key important points are: Introduction, Water Pollution, Air Pollution, Solid Municipal Waste, Hazardous Wastes, Global Warming, Endangered Species, Emission Taxes, Command And Control, Tradable Discharge Permits
Typology: Slides
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Air pollution
Hazardous wastes
Cost-benefit analysis
Abatement costs
Water pollution
Optimal pollution
Global warming
Endangered species
Solid municipal waste
Tradable discharge permits
Command and control
Emission taxes
Appeals to moral behavior
Recognizes that people respond to incentives
ļ” Households: āgive a hoot, donāt polluteā ļ” Firms: emission standards
Why do people behave in ways that
harm the environment?
Bootleggers & Baptists?
Julian Simon
Economy and Environment
Economy
Nature
Natural Resource Economics Environmental Economics
resources residuals
Assume a concave production possibility curve. Suppose that society decides to increase the production of market goods by 10,000 units, and that as a result environmental quality falls by 10 units. If a further increase of 10,000 units of market goods is sought, we can expect that environmental quality will:
a) fall by 10 units.
b) fall by less than 10 units.
c) fall by more than 10 units.
d) increase by less than 10 units.
1 2 3 4 5
a) b) c) d)
Producers
Consumers
Residuals: R (^) p Discharged: (^) dR (^) p
Residuals: R (^) c Discharged: (^) dR (^) c
Recycled: (^) r R (^) c
Goods: G
Recycled: (^) r R (^) p
Raw Materials M
Fundamental Balance
Radioactive waste, plastics, many chemicals Noise
Noise, visual SO 2 CO 2 , CFCs
Smoke stacks, waste treatment plants Agricultural runoff
Factories Cars, planes, boats
Power plants, factories, waste treatment plants Oil and chemical spills
U.S. Census Bureau,Pollution Abatement Costs and Expenditures: 2005, MA200(05), U.S. Government Printing Office, Washington, DC, 2008. Online: http://www.census.gov/prod/2008pubs/ma200-05.pdf
Supply
Demand
quantity
Price
P*
Normative
Positive
Demand
(^5) quantity
$
Price Buyerās Marginal Benefit or WTP
$
1
Consumer Surplus
Total Expenditure
Market price
Q
Supply
Demand
quantity
Price
Q*
P* PS
Deadweight Loss
