Economics and the Global Environment

Cover......Page 1
Frontmatter......Page 2
Contents......Page 8
List of Tables......Page 13
List of Figures......Page 15
Preface......Page 20
Acknowledgments......Page 24
1 The Theme and Thesis......Page 26
2 Stepping Back......Page 29
3 Internationalizing Environmental Economics......Page 32
4 Plan of the Book......Page 36
5 A Cautionary Note......Page 40
Part 1 - The Basics......Page 42
Note to Part 1......Page 44
1 Introduction......Page 46
2 Linkages......Page 47
3 Trade-Offs and Complementarities......Page 52
4 Evolution Over Time......Page 59
Appendix 2.1 Derivation of Production Possibility Curves......Page 63
1 Introduction......Page 67
2 Consumer Surplus and Producer Surplus as Welfare Measures......Page 68
3 Efficiency and Equity......Page 75
4 Market and Government Failures and Environmental Degradation......Page 78
5 The Coase Theorem......Page 92
Appendix 3.1 Exact Welfare Measures: Compensating and Equivalent Variation and Surplus......Page 95
1 Introduction......Page 102
2 Discounting......Page 103
3 An Environmental Discount Rate?......Page 111
4 Examples of Discounting and Intertemporal Resource Allocation......Page 120
5 Intergenerational Efficiency, Equity, and Sustainability......Page 133
1 Introduction......Page 139
2 Optimal Environmental Protection......Page 140
3 Concepts of Environmental Value......Page 145
4 Techniques for Monetary Valuation......Page 148
5 Alternatives to Monetary Valuation......Page 161
6 Valuing Life and Health......Page 163
Appendix 5.1 Resolving WTP and WTA Discrepancies......Page 165
1 Introduction......Page 169
2 Promoting Coasian Markets......Page 170
3 Command-and-Control versus Market-Based Instruments......Page 173
4 Effluent and Emission Taxes versus Tradeable Permits......Page 180
5 Subsidies......Page 186
6 Double Dividends and the Choice of Tools in a Second-Best World......Page 187
7 The Tools in Practice......Page 188
Part 2 - Trade and Environment......Page 192
Note to Part 2......Page 194
2 Environment and Comparative Advantage......Page 197
3 Trade Theory and Environment: Early Contributions......Page 201
4 The North-South Controversy......Page 208
5 Theory of Policy and Policy Coordination......Page 214
6 Terms of Trade and Factor Mobility......Page 218
7 Strategic Behavior in Trade and Environmental Policy......Page 222
2 Summary of the Cases......Page 225
3 The Six Cases in Detail......Page 228
1 Introduction......Page 261
2 Welfare Analytics--The Basics......Page 262
3 The Murky World of the Second-Best......Page 266
4 Who Gains and Who Loses? Distribution Questions......Page 273
1 Introduction......Page 283
2 Evolution of the Issue......Page 284
3 Sorting Out Trade-Environment Policy: A Taxonomy......Page 289
2 The OECD and the Polluter Pays Principle......Page 308
3 The GATT, the WTO, and the Environment......Page 313
4 Trade and Environment in the European Union and NAFTA......Page 324
2 Competitiveness Questions......Page 332
3 Trade Effects of Product and Packaging Standards, Ecolabelling, and Multilateral Environmental Agreements......Page 348
4 Impact of Trade and Trade Liberalization on the Environment......Page 358
Part 3 - Transnational Pollution and Management of International Resources......Page 364
Note to Part 3......Page 366
1 Introduction and Classification......Page 368
2 Theoretical Illustration......Page 370
3 Policy Responses......Page 383
4 A Potpourri of Evidence......Page 386
Appendix 13.1 Negotiating MEAs......Page 403
1 Introduction......Page 410
2 Analytical Complexities and Factual Background......Page 411
3 Global Warming in a Cost-Benefit Framework......Page 424
4 The International Context......Page 428
5 Approaches and Tools......Page 437
6 Taxes and Quotas......Page 440
7 International Response......Page 450
1 Introduction......Page 455
2 Theory......Page 457
3 Enclosure......Page 468
4 Examples from Fisheries Management......Page 471
Part 4 - Sustainable Development......Page 484
Note to Part 4......Page 486
1 Introduction......Page 488
2 Changing Views on Resource Limits......Page 489
3 The Equity Roots......Page 494
4 What Is To Be Sustained?......Page 497
5 Policies for Sustainable Development......Page 504
6 The International Dimension......Page 506
1 Introduction......Page 510
2 Revising National Income Accounts: A Green NNP?......Page 512
3 Some Examples of Green Accounting......Page 526
4 An Environmental Kuznets Curve?......Page 532
Appendix 17.1 User-Cost and Net-Price Methods to Value Depletion of Natural Capital......Page 535
2 Thailand's Trade-Environment Profile......Page 539
3 Environmental Measures Affecting Thai Trade......Page 545
4 Impacts on Specific Sectors......Page 553
5 Challenges and Opportunities for Sustainable Development......Page 562
6 A Concluding Thought......Page 566
19 - Looking Back, Looking Forward......Page 568
References......Page 576
Index......Page 598