Environmental and Natural Resource Economics

by Tietenberg, Thomas H.

• ISBN13: 9780321031280
• ISBN10: 0321031288
• Edition: 5th
• Format: Hardcover
• Copyright: 1999-07-01
• Publisher: Taylor & Francis

Summary

The Fifth Edition of this best-selling text continues to thoroughly introduce students to the study of environmental and natural resource economics. In continuing the trend toward a more international focus, Tietenberg increases attention paid to environmental problems and policies in Eastern and Western Europe, China, and developing nations. In addition, an explicit integration of research and policy within each chapter connects actual examples to economic theory, providing students with the context in which to understand the material.

Table of Contents

Preface	xxi
Vision of the Future	1	(15)
Introduction	1	(3)
The Self-Extinction Premise	1	(2)
The Use of Models	3	(1)
Thinking about the Future	3	(1)
Example 1.1 The Dangers of Prognostication	4	(1)
The Basic Pessimist Model	4	(4)
Conclusions of Pessimist Model	5	(1)
The Nature of the Model	6	(2)
The Basic Optimist Model	8	(2)
Conclusions of the Optimist Model	8	(1)
The Nature of the Model	8	(2)
The Road Ahead	10	(3)
The Issues	10	(1)
An Overview of the Book	11	(2)
Summary	13	(3)
Further Reading	14	(1)
Additional Readings	14	(1)
Discussion Questions	15	(1)
Valuing the Environment: Concepts	16	(18)
Introduction	16	(1)
The Human Environment Relationship	17	(2)
The Environment as an Asset	17	(2)
The Economic Approach	19	(1)
Normative Criteria for Decision-Making	19	(7)
Evaluating Predefined Options	19	(2)
Example 2.1 Nature Knows Best	21	(5)
Finding the Optimal Outcome	26	(2)
Static Efficiency	27	(1)
Dynamic Efficiency	28	(1)
Applying the Concepts	28	(2)
Pollution Control	28	(1)
Example 2.2 Does Reducing Pollution Make Economic Sense?	29	(1)
Preservation versus Development	30	(1)
Summary	30	(3)
Example 2.3 Chossing between Preservation and Development In Australia	31	(1)
Further Reading	32	(1)
Additional References	32	(1)
Discussion Question	32	(1)
Problem	32	(1)
Appendix	33	(1)
The Simple Mathematics of Dynamic Efficiency	33	(1)
Valuing the Environment: Methods	34	(27)
Introduction	34	(1)
Valuing Benefits	35	(19)
Types of Values	37	(1)
Example 3.1 Valuing the Northern Spotted Owl	38	(1)
Classifying Valuation Methods	38	(4)
Valuing Human Life	42	(1)
Example 3.2 Valuing Damage From Groundwater Contamination Using Averting Expenditures	43	(1)
Example 3.3 Valuing Diesel Odor Reduction by contingent Ranking	44	(1)
Issues in Benefit Estimation	44	(1)
Primary versus Secondary Effects	44	(1)
Example 3.4 The Value of Wildlife Viewing	45	(2)
Tangible versus Intangible Benefits	47	(1)
Approaches to Cost Estimation	47	(1)
The Survey Approach	48	(1)
The Engineering Approach	48	(1)
The Combined Approach	48	(1)
The Treatment of Risk	48	(3)
Chosing the Discount Rate	51	(1)
A Critical Appraisal	51	(1)
Example 3.5 The Importance of the Discount Rate	52	(2)
Cost-Effectiveness Analysis	54	(1)
Impact Analysis	55	(2)
Example 3.6 NO2 Control in Chicago: An example of Cost-Effectiveness Analysis	56	(1)
Summary	57	(4)
Further Reading	58	(1)
Additional References	59	(1)
Discussion questions	60	(1)
Problems	60	(1)
Property Rights, Externalities, and Environmental Problems	61	(25)
Introduction	61	(1)
Property Rights	62	(3)
Property Rights and Efficient Market Allocations	62	(1)
Efficient Property Right Structures	62	(1)
Example 4.1 Pollution in Centrally Planned Economies	63	(2)
Externalities as a Source of Market Failure	65	(4)
The concept Introduced	65	(3)
Types of Externalities	68	(1)
Improperly Designed Property Rights Systems	69	(4)
Other Property Rights Regimes	69	(2)
Public Goods	71	(2)
Imperfect Market Structures	73	(1)
Example 4.2 Public Goods Privately Provided: The Nature Conservancy	74	(1)
Divergence of Social and Private Discount Rates	74	(2)
Government Failure	76	(2)
Example 4.3 Religion as the Source of Environmental Problems	77	(1)
The Pursuit of Efficiency	78	(3)
Private Resolution Through Negotiation	78	(1)
The Courts: Property Rules and Liability Rules	79	(2)
Legislative and Executive Regulation	81	(1)
An Efficient Role for Government	82	(1)
Summary	82	(4)
Further Reading	83	(1)
Additional References	83	(1)
Discussion Questions	84	(1)
Problems	84	(2)
Sustainable Development: Defining the Concept	86	(14)
Introduction	86	(1)
A Two-Period Model	87	(4)
Defining Intertemporal Fairness	91	(1)
Are Efficient Allocations Fair?	92	(1)
Applying The Sustainability Criterion	93	(2)
Implications for environmental Policy	95	(1)
Summary	95	(3)
Further Reading	97	(1)
Additional References	97	(1)
Discussion Questions	98	(1)
Problems	98	(1)
Appendix	98	(2)
The Mathematics of the Two-Period Model	98	(2)
The Population Problem	100	(25)
Introduction	100	(1)
Historical Perspective	101	(3)
World Population Growth	101	(1)
Population Growth in the United States	102	(2)
Effects of Population Growth on Economic Development	104	(6)
Effects of Economic Development on Population Growth	110	(3)
The Economic Approach to Population control	113	(8)
Example 6.1 The Value of an Averted Birth	114	(4)
Example 6.2 Fertility Decline in Korea: A Case Study	118	(2)
Example 6.3 Income-Generating Activities as Fertility control: Bangladesh	120	(1)
Summary	121	(4)
Further Reading	122	(1)
Additional References	122	(1)
Discussion questions	123	(1)
Problems	124	(1)
The Allocation of Depletable and Renewable Resources: An Overview	125	(24)
Introduction	125	(1)
A Resource Taxonomy	126	(5)
Example 7.1 The Pitfalls in Missing Reserve Data	129	(2)
Efficient Intertemporal Allocations	131	(7)
The Two-Period Model Revisited	131	(1)
The N-Period Constant-Cost Case	132	(1)
Transition to a Renewable Substitute	132	(4)
Increasing Marginal Extraction Cost	136	(1)
Exploration and Technological Progress	137	(1)
Market Allocations	138	(4)
Appropriate Property Right Structures	138	(1)
Example 7.2 Technological Progress in the Iron Ore Industry	139	(1)
Environmental costs	140	(2)
Summary	142	(2)
Further Reading	143	(1)
Additional References	143	(1)
Problems	143	(1)
Appendix	144	(5)
Extensions of the Basic Depletable Resource Model	144	(1)
The N-Period, Constant-Cost, No-Substitute Case	144	(1)
Constant Marginal cost with an Abundant Renewable Substitute	145	(2)
Increasing Marginal Cost Case	147	(1)
Including Environmental cost	148	(1)
Depletable, Nonrecyclable Energy Resources: Oil, Gas, Coal, and Uranium	149	(30)
Introduction	149	(1)
Natural Gas: Price Controls	150	(6)
Example 8.1 Price Controls and Substitution Bias	154	(2)
Oil: The Cartel Problem	156	(6)
Price Elasticity of Demand	157	(1)
Example 8.2 Optimal OPEC Pricing	158	(1)
Example 8.3 Are Soft Energy Paths Doomed?	159	(1)
Income elasticity of Demand	159	(1)
Non-Opec suppliers	160	(1)
Compatibility of Member Interests	161	(1)
Oil: National Security Problem	162	(4)
Transition Fuels: Environmental Problems	166	(4)
Electricity	170	(3)
The Long Run	173	(2)
Summary	175	(4)
Further Reading	176	(1)
Additional References	176	(1)
Discussion Questions	177	(1)
Problems	178	(1)
Recyclable Resources: Minerals, Paper, Glass, Etc.	179	(28)
Introduction	179	(1)
An Efficient Allocation of Recyclable Resources	180	(4)
Extraction and Disposal Cost	181	(1)
Example 9.1 Population Density and Recycling: The Japanese Experience	181	(1)
Example 9.2 New Markets for Trash: Tires	182	(1)
Recycling: A Closer Look	182	(1)
Recycling and Virgin Ore Depletion	183	(1)
The Strategic-Material Problem Revisited	184	(4)
General Principles	184	(1)
Example 9.3 Lead Recycling	184	(1)
government Response	185	(1)
Cobalt: A Case Study	186	(1)
Substitution and Vulnerability	186	(2)
Waste Disposal and Pollution Damage	188	(9)
Disposal Cost and Efficiency	188	(1)
The Disposal Decision	188	(2)
Disposal Costs and the Scrap Market	190	(1)
Public Policies	190	(5)
Pollution Damage	195	(1)
Example 9.4 Implementing the ``Take-Back'' Principle	196	(1)
Tax Treatment of Minerals	197	(2)
Product Durability	199	(4)
Functional Obsolescence	200	(1)
Fashion Obsolescence	200	(1)
Durability Obsolescence	200	(3)
Summary	203	(4)
Further Reading	203	(1)
Additional References	204	(1)
Discussion Questions	205	(1)
Problems	205	(2)
Replenishable but Depletable Resources: Water	207	(22)
Introduction	207	(1)
The Potential for Water Scarcity	208	(2)
The Efficient allocation of Scarce Water	210	(3)
Surface Water	210	(2)
Groundwater	212	(1)
The Current Allocation System	213	(5)
Riparian and Prior Appropriation Doctrines	213	(1)
Sources of Inefficiency	214	(1)
Restrictions of Transfers	215	(1)
Federal Reclamation Projects	216	(1)
Water Pricing	217	(1)
Common Property Problems	217	(1)
Potential Remedies	218	(6)
Example 10.1 Using Economic Principles to Conserve Water In California	219	(1)
Example 10.2 Protecting Instream Uses Through Acquiring Water Rights	220	(4)
Summary	224	(5)
Example 10.3 Politics and the Pricing of Scarce Water	225	(1)
Further Reading	226	(1)
Additional References	226	(1)
Discussion Questions	227	(1)
Problems	228	(1)
Reproducible Private-Property Resources: Agriculture	229	(25)
Introduction	229	(1)
Global Scarcity	230	(1)
Formulating the Global Scarcity Hypothesis	231	(2)
Testing the Hypothesis	233	(5)
Outlook for the Future	234	(1)
Technological Progress	234	(1)
Allocation of Agricultural land	235	(1)
Energy Costs	236	(1)
Environmental Costs	236	(2)
The Role of Agricultural Policies	238	(1)
A Summing Up	239	(1)
Distribution of Food Resources	239	(7)
Difining the Problem	240	(1)
Domestic Production in LDCs	240	(2)
The Undervaluation Bias	242	(1)
Example 11.1 The Price Responsiveness of Supply: Thailand	243	(1)
Feeding the Poor	244	(1)
Example 11.2 Perverse Government Intervention: The Case of Colombia	245	(1)
Feast and Famine Cycles	246	(3)
Summary	249	(5)
Further Reading	250	(1)
Additional References	251	(1)
Discussion questions	252	(1)
Problems	253	(1)
Storables, Renewable Resources: Forests	254	(25)
Introduction	254	(2)
Defining Efficient Management	256	(7)
The Biological Dimension	256	(1)
The Economics of Forest Harvesting	257	(4)
Extending the Basic Model	261	(2)
Sources of Inefficiency	263	(5)
Global Inefficiencies	263	(1)
Biodiversity	263	(1)
Global Warming	263	(1)
Poverty and Debt	264	(1)
Perverse Incentives	265	(2)
Example 12.1 Externalities in Forest Management: Waldsterben	267	(1)
Implementing Efficient Management	268	(5)
Debt-Nature Swaps	270	(1)
Extractive Reserves	271	(1)
Establishing Conservation Easements	271	(1)
Example 12.2 Success Stories in Conserving Tropical Forests	272	(1)
Summary	273	(4)
Example 12.3 The International Tropical Timber Agreement	273	(1)
Example 12.4 Trust Funds for Habitat Preservation	274	(1)
Further Reading	275	(1)
Additional Reference	276	(1)
Discussion Questions	277	(1)
Problems	277	(1)
Appendix	277	(2)
The Harvesting Decision: Forests	277	(2)
Renewable Common-Property Resources: Fisheries and Other Species	279	(31)
Introduction	279	(1)
Efficient Allocation	280	(6)
The Biological Dimension	280	(2)
Static Efficient Sustainable Yield	282	(2)
Dynamic Efficient Sustainable Yield	284	(2)
Appropriability And Market Solutions	286	(6)
Example 13.1 Property Rights and Fisheries: Oysters	289	(1)
Example 13.2 Free-Access Harvesting of the Minke whale	290	(1)
Example 13.3 Harbor Gangs of Maine	291	(1)
Public Policy Toward Fisheries	292	(11)
Aquaculture	292	(1)
Raising the Real Cost of Fishing	293	(2)
Taxes	295	(1)
Individual Transferable Quotas (ITQs)	296	(1)
Example 13.4 Efficient Versus Market Exploitation of Lobsters	297	(3)
The 200-Mile Limit	300	(1)
The Economics of Enforcement	301	(1)
Extension to Other Species	302	(1)
Summary	302	(1)
Example 13.5 Local Approaches to Wildlife Protection: Zimbabwe	303	(4)
Further Reading	304	(1)
Additional References	304	(2)
Discussion Questions	306	(1)
Problems	306	(1)
Appendix	307	(3)
The Harvesting Decision: Fisheries	307	(3)
Generalized Resource Scarcity	310	(24)
Introduciton	310	(1)
Factors Mitigating Resource Scarcity	311	(2)
Exploration and Discovery	311	(1)
Technological Progress	312	(1)
Substitution	312	(1)
Detecting Resource Scarcity	313	(6)
Example 14.1 Resource Scarcity in Historical Perspective: Timber	314	(1)
Cirteria for an Ideal Scarcity Indicator	315	(1)
Applying the Criteria	315	(1)
The Physical Indicators	315	(1)
Resource Prices	316	(1)
Scarcity Rent	317	(1)
Marginal Discovery cost	318	(1)
Marginal Extraction Cost	318	(1)
Evidence On Resource Scarcity	319	(12)
Physical Indicators	319	(5)
Economic Indicators	324	(1)
Extraction Cost	324	(2)
Example 14.2 Geochemically Scarce Metals: How Would the Economy React?	326	(2)
Studies of Resource Price Trends	328	(1)
Example 14.3 The Bet	329	(1)
Discovery Cost	330	(1)
Juxtaposing Alternative Measures	330	(1)
Summary	331	(3)
Further Reading	331	(1)
Additonal References	332	(2)
Economics of Pollution Control: An Overview	334	(29)
Introduction	334	(1)
Pollutant Taxonomy	335	(1)
Defining the Efficient Allocation of Pollution	336	(4)
Stock Pollutants	336	(2)
Fund Pollutants	338	(2)
Market Allocations	340	(1)
Efficient Policy Responses	341	(2)
Example 15.1 Environmental Taxation in China	342	(1)
Cost-Effective Policies for Uniformly Mixed Find Pollutants	343	(6)
Defining A Cost-Effective Allocation	343	(1)
Cost-Effective Pollution Control Policies	344	(1)
Emission Standards	345	(1)
Emission Charges	345	(3)
Transferable Emission Permits	348	(1)
Cost-Effective Policies for Nonuniformly Mixed Surface Pollutants	349	(6)
The Single-Receptor Case	349	(3)
Policy Approaches	352	(2)
The Many-Receptors Case	354	(1)
Other Policy Dimensions	355	(2)
Example 15.2 Energy-Demand Uncertainty and the Cost of Being Wrong: Permits Versus Charges	357	(1)
Summary	357	(4)
Further Reading	359	(1)
Additional References	359	(1)
Discussion Questions	360	(1)
Problems	360	(1)
Appendix	361	(2)
The Simple Mathematics of Cost-Effective Pollution Control	361	(1)
Policy Instruments	362	(1)
Stationary-Source Local Air Pollution	363	(25)
Introduction	363	(1)
Conventional Pollutants	364	(10)
The Command-and-Control Policy Framework	364	(4)
The Efficiency of the Command-and-Control Approach	368	(1)
The Threshold Concept	368	(1)
The Level of the Ambient Standard	368	(1)
Uniformity	369	(1)
Timing of Emission Flows
Example 16.1 Net Benefit Analysis of the Particulate Ambient Standard	370	(1)
Concentration versus Exposure	371	(1)
Cost-Effectiveness of the Command-and-Control Approach	371	(2)
Air Quality	373	(1)
Innovative Approaches	374	(8)
The Emissions Trading Program	374	(1)
The Emission Reduction Credit	374	(1)
The Offset Policy	374	(1)
The Bubble Policy	374	(1)
Netting	375	(1)
Example 16.2 The Bubble and Offset Policies in Action	376	(1)
Banking	376	(1)
The Effectiveness of Emissions Trading	376	(3)
Smog Trading	379	(1)
Hazardous Pollutants	380	(2)
Summary	382	(6)
Example 16.3 Efficient Regulation of Hazardous Pollutants: The Benzene Case	384	(1)
Further Reading	385	(1)
Additional References	386	(1)
Discussion Questions	387	(1)
Problems	387	(1)
Regional and Global Air Pollutants: Acid Rain and Atmospheric Modification	388	(27)
Introduction	388	(1)
Regional Pollutants	389	(9)
Acid Rain	389	(2)
Example 17.1 Adirondack Acidification	391	(5)
Example 17.2 The Sulfur Allowance Program	396	(1)
Example 17.3 Why and How do Environmentalists But Pollution?	397	(1)
Global Pollutants	398	(12)
Ozone Depletion	398	(3)
Global Warming	401	(2)
Example 17.4 Tradable Permits for Ozone-Depleting Chemicals	403	(2)
Example 17.5 Ethics, Risk Aversion, and the Greenhouse Effect	405	(5)
Summary	410	(5)
Further Reading	412	(1)
Additional References	412	(2)
Problems	414	(1)
Mobile-Source Air Pollution	415	(24)
Introduction	415	(4)
Economies of Mobile-Source Pollution	417	(1)
Implicit Subsidies	417	(1)
Externalities	417	(1)
Consequences	418	(1)
Policy Toward Mobile Sources	419	(4)
History	419	(1)
Structure of the U.S. Approach	420	(1)
Certification Program	420	(1)
Associated Enforcement Programs	421	(1)
Lead	421	(1)
Local Responsibilities	422	(1)
Alternative Fuels and Vehicles	422	(1)
European Approaches	423	(1)
An Economic and Political Assessment	423	(9)
Example 18.1 Car Sharing: Better Use of Automotive Capital?	424	(1)
Technology Forcing and Sanctions	425	(1)
Differentiated Regulation	425	(1)
Uniformity of Control	426	(1)
Example 18.2 Setting the National Automobile Emissions Standards	427	(1)
The Deterioration of New-Car Emission Rates	428	(1)
Inspection and Maintenance Programs	428	(1)
Other Local Strategies	428	(2)
Lead Phaseout Program	430	(1)
Alternative Fuels	430	(1)
Example 18.3 Getting the Lead Out: The Lead Phaseout Program	431	(1)
Air Quality	431	(1)
Ozone	431	(1)
Carbon Monoxide	432	(1)
Possible Reforms	432	(3)
Example 18.4 Innovative Mobile Pollution-Control Strategies: Singapore and Hong Kong	434	(1)
Summary	435	(4)
Example 18.5 Counterproductive Policy Design	436	(1)
Further Reading	437	(1)
Additional References	437	(1)
Discussion Questions	438	(1)
Pollution	439	(29)
Indroduction	439	(1)
Nature of Water Pollution Problems	440	(5)
Types of Waste-Receiving Water	440	(1)
Sources of Contamination	440	(1)
Rivers and Lakes	440	(1)
Example 19.1 Incidents of Groundwater Pollution	441	(1)
Ocean Pollution	442	(1)
Type of Pollutants	442	(2)
Fund Pollutants	444	(1)
Traditional Water Pollution Control Policy	445	(4)
Early Legislation	445	(1)
Subsequent Legislation	446	(1)
Point Sources	446	(1)
Nonpoint Sources	447	(1)
The Safe Drinking Water Act	448	(1)
Ocean Pollution	449
Oil Spills	448	(1)
Ocean Dumping	449	(1)
Citizen Suits	449	(1)
Efficiency and Cost-Effectiveness	449	(14)
Ambient Standards and the Zero-Discharge Goal	449	(1)
National Effluent Standards	450	(1)
Enforcement Problems	451	(1)
Allocating Control Responsibility	451	(3)
Thee European Experience	454	(1)
Municipal Waster Treatment Subsidies	455	(1)
The Allocation of Funds	455	(1)
Example 19.2 Marketable Emission Permits on the Fox River	456	(1)
Operation and Maintenance	456	(1)
Capital of Costs	457	(1)
Pretreatment Standards	457	(1)
Nonpoint Pollution	457	(1)
Costs	457	(1)
Example 19.3 Cost-Effective Pretreatment Standards	458	(1)
Oil Spills	458	(2)
Example 19.4 Anatomy of an Oil Spill Suit: Amoca Cadiz	460	(1)
Citizen Suits	461	(1)
An Overall Assessment	462	(1)
Summary	463	(5)
Further Reading	464	(1)
Additional References	465	(2)
Discussion Questions	467	(1)
Problem	467	(1)
Toxic Substances	468	(29)
Introduction	468	(5)
Nature of Toxic Substance Pollution	469	(1)
Health Effects	470	(1)
Cancer	470	(1)
Reproductive Effects	470	(1)
Policy Issues	470	(1)
Number of Substances	470	(1)
Latency	471	(1)
Uncertainty	472	(1)
Markt Allocations and Toxic Substances	473	(5)
Occupational Hazard	473	(3)
Example 20.1 Susceptible Population in the Hazardous Workplace	476	(1)
Product Safety	476	(1)
Third Parties	477	(1)
Current Policy	478	(1)
Common Law	478	(1)
Negligence	478	(1)
Strict Liability	479	(1)
Criminal Law	479	(6)
Statutory Law	480	(1)
Example 202 Judicial Remedies Toxic Substance Control: The Kepone Case	481	(1)
Federal Food, Drug, and Cosmetic Act	481	(1)
Occcupational Safety and Health Act	482	(1)
Federal Environmental Pesticide Control Act	482	(1)
Resource Conservation and Recovery Act	483	(1)
Toxic Substances Control Act	483	(1)
Comprehensive Environmental Response, Compensation, and Liability Act	483	(1)
International Agreements	484	(1)
An Assessment of The Legal Remedies	485	(8)
The Common Law	485	(1)
Judicial-Legislative Complementarily	485	(1)
Limitations of Judicial Remedies	486	(2)
Joint and Several Liability Doctrine	488	(1)
The Statutory Law	489	(1)
Balancing the Costs	489	(1)
Example 20.3 Weighing the Risks: Saccharin	490	(1)
Degree and Form of Intervention	491	(1)
Scale	492	(1)
Assurance Bonds: An Innovative Proposal	492	(1)
Example 20.4 Performance Bonds for Brominated Flame Retardant	493	(1)
Summary	493	(4)
Further Reading	494	(1)
Additional References	495	(1)
Discussion Questions	496	(1)
Environmental Justice	497	(23)
Introduction	497	(1)
The Incidence of Hazardous Waster Siting Decisions	498	(3)
The Economics of Site Location	499	(1)
The Policy Response	500	(1)
The Incidence of Pollution Control Costs: Individual Industries	501	(6)
A Competitive Industry	501	(1)
Incidence	501	(2)
Scale Effects	503	(1)
New-Source Bias	504	(1)
Example 21.1 The Effects of Environmental controls on the Tissue Industry	505	(1)
Monopoly	506	(1)
The Generation of Pollutants	507	(1)
The Incidence of Households	508	(5)
Air Pollution	508	(1)
Automobile Control	508	(1)
Stationary Source control	509	(1)
A Combined Assessment	510	(1)
Water Pollution	511	(1)
Point Sources	512	(1)
Nonpoint Sources	512	(1)
Implications for Policy	513	(3)
Example 21.2 Distributional Impacts of RECLAIM	515	(1)
Summary	516	(4)
Further Reading	517	(1)
Additional References	517	(2)
Discussion Questions	519	(1)
Development, Poverty, and the environment	520	(28)
Introduction	520	(2)
The Growth Process	522	(8)
The Nature of the Process	522	(1)
Increases in Inputs	522	(1)
Technological Progress	522	(1)
Example 22.1 The Generalized Cobb-Douglas Production Function	523	(1)
Potential Sources of Reduced Growth	523	(1)
Reduced Input Flows	524	(2)
Limits on Technological Progress	526	(1)
Environmental Policy	526	(2)
Energy	528	(1)
Example 22.2 Jobs Versus the Environment: What is the Evidence?	529	(1)
Outlook for the Near Future	530	(2)
Population Impacts	530	(1)
The Information Economy	531	(1)
The growth-Development Relationship	532	(4)
conventional Measures	532	(2)
Alternative Measures	534	(2)
Growth and Poverty: The Industrialized Nations	536	(1)
The Effects on Income Inequality	537	(1)
Poverty in the Less Industrialized Nations	537	(6)
Example 22.3 Does Money Buy Happiness?	538	(1)
Appropriateness of the Traditional Model	539	(1)
Scale	539	(1)
Forms of Development	539	(1)
Barriers to Development	540	(1)
Population Growth	540	(1)
Land Ownership Patterns	540	(1)
Trade Policies	541	(1)
Debt	542	(1)
Summary	543	(5)
Futher Reading	544	(1)
Additioal References	544	(2)
Discussion Questions	546	(2)
The Quest for Sustainable Development	548	(29)
Introduction	548	(1)
Sustainability of Growth	548	(8)
Market Allocations	550	(1)
Efficiency and Sustainability	551	(2)
Example 23.1 Resource Depletion and Economic Sustainability: Malaysia	553	(2)
Trade and the Environment	555	(1)
A Menu of Opportunities	556	(3)
Agriculture	556	(1)
Energy	557	(1)
Waste Reduction	558	(1)
Managing the Transition	559	(2)
Example 23.2 Sustainable Development: Three Success Stories	560	(1)
Prospects for International Cooperation	561	(8)
Example 23.3 Controlling Land Development with TDRs	562	(1)
Opportunities for Cooperation	562	(1)
Restructuring Incentives	563	(1)
The Full-Cost Principle	564	(2)
The Cost-Effectiveness Principle	566	(1)
The Property Rights Principle	567	(1)
The Sustainability Principle	568	(1)
The Information Principle	569	(1)
Forced Transition	569	(3)
Difining the Target	570	(1)
Institutional Structure	570	(1)
Population Stabilization	571	(1)
Example 23.4 Reputational Strategies for Pollution Control in Indonesia	571	(1)
Stock and Throughput Stabilization	571	(1)
Ensuring Distributiional Fairness	572	(1)
Administration	572	(1)
Summary	572	(5)
Further Reading	573	(1)
Additional References	574	(2)
Discussion Questions	576	(1)
Visions of the Future Revisited	577	(10)
Addressing the Issues	577	(10)
Conceptualizing the problem	577	(2)
Institutional Responses	579	(3)
Sustainable development	582	(3)
A concluding comment	585	(2)
Problem Set Answers	587	(10)
Glossary	597	(12)
Name Index	609	(4)
Subject Index	613