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Macroeconomic Analysis of Environmental Policy: Developments in Environmental Economics Volume 2

Out of Print

Series: Developments in Environmental Economics

By: EC Van Ierland


Hardback | Dec 1993 | #25894 | ISBN: 0444899987
Out of Print Details

About this book

This book deals with the theory of environmental economics, and provides a number of empirical applications of it. It focuses on global warming, climate change, and the economic aspects of transboundary air pollution.


Part 1 Economics and environment: economic and environmental interactions; main environmental problems; background of environmental problems - population growth, economic growth and technology; environmental studies; a stock-flow model of economic ecological interactions; measuring economic activity, income and changes in wealth; solutions of environmental problems; economic decision-making; the need for political decision-making; economic environment analysis; aim of the study; a stock-flow model for economic environmental analysis. Part 2 Economic theory of the environment: optimal allocation of production factors; the market mechanism and Pareto optimality; the failure of the market mechanism - external effects; Pareto optimality and external effects; the impact of an emission tax; intergenerational trade offs; international aspects; instruments of environmental policy; the impact of new technology; optimal policy mix and conflicting objectives; environmental benefits. Part 3 The economic impact of environmental policy: emission taxes versus direct regulation; tradeable pollution rights; pollution prevention pays; emission reduction by energy conservation and renewable energy; recycling and deposit systems; changes in the production and consumption pattern; environmental quality indicators; the impact of analysis of environmental policy in an empirical model. Part 4 A sectoral model for environmental policy analysis: input-output models; block I production; block II expenditures and imports; block III prices and wages; block IV the labour market and production capacity; block V government and social security; block VI incomes; block VII monetary aspects; block VIII environment and energy; model applications; technical and expenditure co-efficients of MEPA. Part 5 Model application - global warming and carbon dioxide emissions: global warming; the base case; sensitivity analysis; policy measures for CO2 emission reduction. Part 6 Economics of transboundary air pollution in Europe: optimal abatement strategies; structure of the optimization model; reference projection; full co-operation - abatement and damage cost minimization; the critical loads approach; a differentiated critical loads approach; an example of coalition; receptor-emittor matrix for SO2. Part 7 Conclusions: the theory of environmental economics; environmental policy instruments; economic environmental modelling; on global warming and carbon dioxide emission reduction; on acidification in Europe; on the scope of this study.

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