Environmental Economics for Sustainable Growth

by Markandya, Anil; Harou, Patrice; Bellu, Lorenzo Giovanni; Cistulli, Vito

• ISBN13: 9781840648126
• ISBN10: 1840648120
• Format: Paperback
• Copyright: 2002-11-01
• Publisher: Edward Elgar Pub

Table of Contents

List of figures	ix
List of tables	xiii
List of boxes	xix
Foreword	xxi
Acknowledgements	xxiii
Introduction and structure	1	(14)
Introduction	3	(1)
Objectives of the book	4	(3)
Description of the chapters	7	(8)
PART I ECONOMY-WIDE POLICIES AND THE ENVIRONMENT
Sustainable development vision in a global context	15	(26)
The earliest definition of sustainable development	17	(1)
Economic dimension of sustainable development	18	(2)
Environmental sustainability	20	(3)
Social sustainability	23	(2)
Measures of strong and weak sustainability	25	(6)
Sustainable development vision in a political context	31	(3)
Integrating environment and development	34	(3)
Strategies and political economy	37	(4)
Macroeconomic policies and the environment	41	(68)
Introduction	43	(1)
Macroeconomic policies and the environment	44	(13)
Tools and methods of macroeconomic analysis	57	(11)
Conclusions	68	(41)
Case study 1: Structural adjustment and sustainable development in Zambia: a study of the impact of macroeconomic policies on the environment	74	(19)
Case study 2: A general equilibrium model of the Botswana economy, including the livestock sector	93	(10)
Case study 3: System of national accounts and the environment	103	(6)
Sectoral policies and the environment	109	(56)
Introduction	111	(1)
Partial or sectoral market equilibrium	111	(2)
Consumer and producer surplus	113	(3)
Market failures	116	(4)
Policy and institutional failures	120	(2)
Shadow pricing	122	(1)
Environmental management principles	123	(4)
Conclusions	127	(38)
Case study 1: Economic analysis of the beef protocol in Botswana	129	(6)
Case study 2: GAP analysis: forestry sector	135	(7)
Case study 3: Land use and sectoral policies	142	(3)
Case study 4: Energy and industry sectors	145	(20)
Policies, instruments and the environment	165	(54)
Introduction	167	(1)
Analytical tools	167	(3)
Optimality of private decisions	170	(7)
Environmental instruments	177	(20)
Instruments in practice	197	(14)
Lessons and conclusions to the chapter	211	(3)
Problem set	214	(1)
Solution to problem set	215	(4)
Laws, regulations and institutions	219	(28)
Introduction	221	(1)
Legal system for environmental protection	221	(1)
International legal instruments	222	(1)
Environmental laws	222	(9)
Environmental institutions	231	(4)
Conclusions	235	(12)
List of multilateral treaties and other agreements in the field of the environment	238	(4)
Discussion notes to check-list	242	(5)
National environmental strategies	247	(22)
Introduction	249	(1)
Past experience	249	(5)
Identifying and prioritizing problems	254	(3)
Defining priorities for action: diagnosing causes	257	(2)
Defining priorities for action: finding solutions	259	(1)
Plan implementation	260	(4)
Conclusions	264	(5)
Questions for discussion	268	(1)
Economy-wide policies and the valuation of environmental impacts	269	(22)
Introduction	271	(1)
The project cycle and environmental assessment	272	(1)
Appraisal of a project with environmental impacts	272	(3)
Step 1: EA and the with - without analysis	275	(1)
Step 2: financial and economic appraisal	276	(2)
Step 3: shadow pricing for market failures	278	(1)
Step 4: discount rate and comparison of costs and benefits	278	(8)
Step 5: decision-making with participation	286	(1)
Conclusion	286	(5)
PART II ENVIRONMENTAL VALUATION METHODS FOR POLICIES AND PROJECTS
Economic principles and overview of valuation methods	291	(40)
Introduction	293	(1)
Total economic value of an environmental asset	293	(3)
Basic concepts of valuation methods	296	(12)
Overview of valuation methods	308	(23)
Economics underlying valuation methods	320	(11)
Revealed preference: direct proxy methods	331	(32)
Introduction	333	(3)
Productivity change method (PCM)	336	(3)
Substitute cost method (SCM)	339	(24)
Case study 1: a numerical example of PCM	344	(9)
Case study 2: a numerical example of SCM	353	(7)
Technical substitutability of inputs and factors	360	(3)
Revealed preference: indirect proxy methods	363	(58)
Travel cost method	365	(6)
Hedonic price method (HPM): the conceptual framework	371	(50)
Exercise 1: Zonal travel cost method (ZTCM): a numerical example	379	(10)
Exercise 2: Individual travel cost method (ITCM): a numerical example	389	(14)
Exercise 3: Hedonic price method (HPM): a numerical example	403	(13)
The linear model for ITCM demand functions	416	(2)
Mathematical functions for HPM	418	(3)
Stated preference: contingent valuation methods	421	(68)
Contingent valuation method: the conceptual framework	423	(5)
CVM methodology	428	(61)
Contingent valuation method: bidding game (CVMBG): numerical examples	436	(16)
Contingent valuation method: dichotomous choice (CVMD)	452	(13)
Dichotomous CVM using the logit model: a numerical example	465	(19)
Dichotomous and polichotomous logit models	484	(2)
Mean and median maximum WTP in the linear utility difference model	486	(3)
Use of monetary values of environmental and natural resources for benefit-cost analysis: an application to a soil moisture conservation project in Tunisia	489	(26)
Background	491	(2)
Methodology	493	(3)
Exercise: case study of the BCA for the Tunisia soil moisture conservation project	496	(5)
Solution set	501	(12)
Discussion	513	(2)
Use of monetary values of environmental and natural resources in the framework of national accounts: an application to Costa Rica	515	(18)
Theoretical background	517	(1)
Methodology	518	(3)
Exercise: Case study of environmental accounts for Costa Rica	521	(12)
Valuing health impacts: a case study of air pollution in New Delhi, India	533	(24)
Introduction	535	(1)
Conceptual framework	535	(10)
Case study: Valuing Health impacts in Delhi	545	(12)
Index	557