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E-raamat: Foundations of Environmental Economics

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This textbook provides a solid introduction to the theoretical and empirical aspects of environmental economics, and their links to environmental policy. It advocates drawing on the economist’s toolbox as a powerful means of finding solutions to environmental problems by addressing the conflict between the societal costs of pollution on the one hand, and the financial costs of emissions reduction on the other. The book presents the main economic theory approaches to handling environmental problems and assessing the monetary value of environmental quality; the most relevant environmental policy instruments and challenges involved in their effective real-world application; and both national and global environmental problems addressed by environmental negotiations and agreements.
Given its scope, the book offers a valuable basis of information for students, and for policymakers pursuing effective environmental policies.
1 Introduction: Economics and Environmental Degradation 1(12)
1.1 Thesis 1
3(4)
1.2 Thesis 2
7(2)
1.3 Thesis 3
9(2)
References
11(2)
2 Environmental Externalities and Their Internalization Through Voluntary Approaches 13(24)
2.1 The Socially Optimal Pollution Level in Case of a Unilateral Externality
14(2)
2.2 Ways to Internalize Externalities
16(19)
2.2.1 The Coase Theorem
16(16)
2.2.2 Other Voluntary Approaches 30 Appendix: Multilateral Externalities, Public Goods, and Mixed Goods
32(3)
References
35(2)
3 Monetary Valuation of the Environment 37(30)
3.1 Theoretical Background
38(9)
3.1.1 Price Changes
38(8)
3.1.2 Quantity Changes
46(1)
3.2 The Contingent Valuation Method: Measuring Utility by Means of Surveys
47(18)
3.2.1 The Idea
47(3)
3.2.2 The Procedure
50(1)
3.2.3 Problems with Contingent Valuation Studies
51(11)
3.2.4 Conclusions for the Design and Validity of CVM Studies
62(3)
References
65(2)
4 A Comparison of Environmental Policy Instruments 67(66)
4.1 Background
69(1)
4.2 Command and Control Instruments
70(5)
4.2.1 Types of Command and Control Instruments
70(1)
4.2.2 Advantages and Disadvantages of Command and Control Instruments
70(5)
4.3 Advantages of Environmental Taxes
75(5)
4.3.1 Cost-Effectiveness in Abating Emissions ("Static Efficiency")
75(2)
4.3.2 Stronger Incentives for Innovation ("Dynamic Efficiency")
77(3)
4.4 Problems with Environmental Taxation
80(18)
4.4.1 Differences of Environmental Impact
80(2)
4.4.2 Unknown Marginal Abatement Costs
82(4)
4.4.3 Effects of Environmental Taxation in Case of a Supplier's Monopoly
86(3)
4.4.4 The Possibility of Rising Emissions Through Environmental Taxation
89(4)
4.4.5 An Excessive Dynamic Incentive Effect
93(1)
4.4.6 Welfare Losses Due to the Double Burden of Environmental Taxes
94(4)
4.5 The Double Dividend Hypothesis: The Idea of "Greening" the Tax System
98(12)
4.5.1 The Idea of the Double Dividend
98(2)
4.5.2 The Level of the Optimal Environmental Tax When the Double Dividend Is Taken into Account
100(2)
4.5.3 Challenging the Existence of Double Dividends
102(5)
4.5.4 Conflicts of Environmental Taxes with Other Economic Objectives
107(3)
4.6 Emission Trading: An Alternative Incentive-Based Instrument of Environmental Policy
110(19)
4.6.1 The Functioning and the Prospective Advantages of Cap-and-Trade Systems
111(5)
4.6.2 Dynamic Efficiency of Permit Schemes
116(3)
4.6.3 Problems with Emission Trading
119(6)
4.6.4 Cap-and-Trade Systems in Practice
125(4)
4.7 The Limits of Emission Pricing: An Integrated View of Instrument Choice in Environmental Policy
129(2)
References
131(2)
5 International Environmental Problems 133(26)
5.1 Introduction
134(1)
5.2 A Two-Country Game with a Reciprocal Externality: Payoff Structure and Nash Equilibria
135(5)
5.2.1 The Model
135(1)
5.2.2 Payoff Rankings and Country Types
136(1)
5.2.3 Explanation of Country Types
137(1)
5.2.4 Nash Equilibria
138(2)
5.3 Transformations of the One-Shot Game
140(6)
5.3.1 Changes of Abatement Costs
140(4)
5.3.2 Extended Preferences
144(2)
5.4 Repeated Games
146(5)
5.5 Success Factors of International Environmental Cooperation: Two Examples
151(3)
References
154
Supplementary Information
Index 159
Prof. Dr. Wolfgang Buchholz studied Mathematics, Economics and Political Science at the Universities of Freiburg and Tübingen, where he got his Ph.D. in Economics in 1982 and finished his Habilitation in 1987. In 1988 he became an associate professor of economics at the University of Regensburg. After an interplay as a professor at the newly founded European University in Frankfurt (Oder) between 1992 and 1996 he returned to Regensburg now as a full professor of public and environmental economics. Since 2002, he has also been a research professor at the ifo Institute in Munich. His main fields of research are international environmental economics, the theory of public goods, intertemporal evaluation and discounting, social protection and distribution policy and the links between economics and ethics.  





Prof. Dr. Dirk T.G. Rübbelke is Professor of Economics at Technische Universität Bergakademie Freiberg. Before he joined Technische Universität Bergakademie Freiberg, he was IKERBASQUE Research Professor at the Basque Centre for Climate Change (2010-2014), Senior Research Fellow at the Center for International Climate and Environmental Research Oslo (2008-2010) and Junior Professor at Chemnitz University of Technology (2002-2008). He is also Research Associate at the Centre for European Economic Research (ZEW), Mannheim, and Fellow Member in the CESifo Research Network, Munich. Prof. Rübbelke did research and taught at internationally renowned universities and research centres, such as  Australian National University in Canberra, Hebrew University Jerusalem, Jadavpur University in Kolkata, Max Planck Institute for Tax Law and Public Finance in Munich and University of Nottingham.
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