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North Castle Books

Environmental and Natural Resources Economics: Theory, Policy, and the Sustainable Society, Fourth Edition
Authored by: Steven C. Hackett

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Cloth ISBN: Not Available Paper ISBN: 978-0-7656-2494-9
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Information: 496pp. Tables, figures, boxes, marginal definitions, end-of-chapter questions and problems, end-of-chapter references, end-of-chapter web links, index, glossary, and online instructor's materials for instructors adopting the text
Publication Date: December 2010.  


Description: This new edition of Environmental and Natural Resources Economics presents an accessible yet rigorous treatment of environmental and natural resources economics, including climate change and the economics of sustainability. Completely revised and updated, the fourth edition now includes new diagrams and tables, margin materials to assist the reader, and updated policy information. The chapter on global climate change has been substantially rewritten to incorporate new scientific information and evolving public policy. This innovative textbook integrates economics with science and public policy in a balanced and accessible way that will be appreciated by students from disciplines ranging from economics and natural resource management to environmental studies and energy policy. Online instructor's materials are also available to adopters.

Selected Contents:

List of Tables and Figures
Foreword by Michal C. Moore

Part I. Theory and Fundamentals

1. Introduction
Fundamental Concepts
Some Reasons for Optimism and Some Reasons for Concern
Reasons for Optimism
Reasons for Concern
Review Questions and Problems
Internet Links
References and Further Reading

2. Values
Deontological Ethics
Teleological Ethics
A Closer Look at Utilitarianism
Self-Interest, the Common Good, and Social Order
Private Property
Locke and the Liberal Society
Rousseau and the Civil Society
On Positive and Normative Economics
Economic Questions That All Societies Must Answer
Review Questions and Problems
Internet Links
References and Further Reading

3. Markets
Market Capitalism
Conditions Required for a Well-Functioning Competitive Market
Market Demand and Supply
Market Demand
Market Supply
Market Equilibrium and Efficiency
Market Equilibrium
Efficient Resource Allocation
Market Failure
Monopoly, Cartels, and Market Power
Common-Pool Resources and Public Goods: Collectively Produced and/or Consumed Goods
Imperfect Information
Distributive Justice
Perspectives on Market Failures and Government Intervention
Review Questions and Problems
Internet Links
References and Further Reading
Appendix: A Calculus-based Derivation of Supply Curves

4. Externalities
Positive Externalities
Negative Externalities
Property Rights and Negative Externalities
Social Cost as the Sum of Private and External Cost
Competitive Markets Are Inefficient When There Are Negative Externalities
Pigouvian Taxes: The Theory of Policy Interventions for Negative Externalities
Some Damage Cost Estimates
Review Questions and Problems
Internet Links
References and Further Reading

5. Natural Resource Economics Part I: Theory and Concepts
Introduction and Overview
Allocating Nonrenewable Resources
The Industrial Organization of Energy Delivery in the United States
The Theory of Dynamically Efficient Nonrenewable Resource Pricing
Present Value Analysis
Dynamic Efficiency
Allocating Recyclable Resources
Allocating Renewable Resources
Allocating Common-Pool Resources
Ecosystem Services and Natural Capital
Resources for the Future: Factors Affecting Future Resource Scarcity
Review Questions and Problems
Internet Links
References and Further Reading
Appendix: The Prisoner's Dilemma and the Tragedy of the Commons

Part II. Policy

6. Natural Resource Economics Part II: Marine Capture Fisheries
World Trends
Bioeconomic Model of a Fishery
Fishery Management
Catch Shares
Review Questions and Problems
Internet Links
References and Further Reading

7. An Introduction to Benefit/Cost Analysis
Elements of Benefit/Cost Analysis
Present Value
Maximizing Total Net Benefits
Operationalizing Benefit/Cost Analysis in U.S. Environmental Policy
Topics in Benefits Measurement
Quantitative Risk Assessment (QRA) and the Value of a Statistical Life (VSL)
Estimating Nonmarketed Environmental Benefits: Use Values; Nonuse Values
The Contingent Valuation Method (CVM): Examples of CVM Studies
The Travel Cost Method (TCM)
The Hedonic Regression Method (HRM)
Other Valuation Approaches
Shortcomings and Limitations of Benefit/Cost Analysis
The Coase Theorem
Review Questions and Problems
Internet Links
References and Further Reading

8. Political Economy
Introduction: What Is Political Economy?
Economic Models of Political Economy and the Regulatory Process
The Political Market for Regulation
The Political Economy of Environmental Regulation: A Selective Survey
The Political Economy of Locally Self-Governed Common-Pool Resources
The Political Economy of International Environmental Accords: The Case of the Montreal Protocol
Theoretical Foundation
Case Study: The International Political Economy of CFC Control
Review Questions and Problems
Internet Links
References and Further Reading

9. Compliance and Deterrence
The Economics of Crime
The Economics of Deterrence
Criminal Penalties and Incarceration versus Fines and Monetary Damages
Market-based Reputational Deterrence and Voluntary Overcompliance
Private Auditing
Incentive Enforcement Systems
EPA Enforcement
Selected Civil and Criminal Case Summaries from the Department of Justice
California Enforcement
Citizen Suits
Review Questions and Problems
Internet Links
References and Further Reading

10. Incentive Regulation
Market-Based Regulation
Two Examples of Market-Based Regulation: Transferable Development Rights and Wetlands Mitigation Banking
Cap and Trade
An Illustration of the Cost-Savings Potential from a Cap-and-Trade Program
Case 1: Traditional Uniform Performance Standard and No Tradable Allowances
Case 2: Cap and Trade
Case 3: Limited Allowance Trading
Advantages of Tradable Allowance Systems
Disadvantages of Tradable Allowance Systems
Cap and Trade and the Clean Air Act (CAA) Amendments of 1990: The Acid Rain Program
Renewable Portfolio Standard (RPS)
Emissions Trading
Other Experiments with Tradable Allowances
Pollution Taxes
Pollution Taxes in the United States
Pollution Taxes Around the World
Which is Better: Cap and Trade or a Pollution Tax?
Theoretical Equivalence of a Pollution Tax and Cap and Trade
The Policy Debate
Review Questions and Problems
Internet Links
References and Further Reading

11. Global Climate Change: Science, Economics, and Policy
Greenhouse Gas Emissions and Global Climate Change
Modeling Carbon Dioxide Emissions
Trends and Predictions
The Evidence Regarding Global Climate Change
Benefit/Cost Analysis
Economic Policy Instruments
Policy Implementation: Kyoto and Beyond
The Kyoto Protocol
Carbon Markets
Emerging Regulatory Programs
Review Questions and Problems
Internet Links
References and Further Reading

Part III. Topics on the Economics of Sustainability

12. Introduction to the Concept of Sustainability
Sustainable Development
Conservation-based Development
A Working Definition of Sustainability
Review Questions and Problems
Internet Links
References and Further Reading

13. Recognizing Interdependencies and Thinking Long Term
Recognizing Interdependencies
Technological Advance, the Agrarian Transition, and Human Migration
Income, Poverty, and Economic Growth
Education, Empowerment, and Justice
International Trade
The Argument for Free International Trade
The Argument against Free International Trade
Population: The Demographic Transition Model; Population Forecasts
Taxes and Incentives
Thinking Long Term: Discounting and Policy Making
The Effect of Discount Rates on Environmentally Friendly Investments and Sustainability: An Illustrative Example
The Opportunity Cost of Capital and the Social Rate of Time Preference: The Opportunity Cost of Capital; The
Social Rate of Time Preference
Are the Discount Rates Associated with Competitive Financial Markets Consistent with Those Required for Sustainability?
Review Questions and Problems
Internet Links
References and Further Reading

14. Sustainable Economic Development
Conventional Economic Development Strategies
Conventional Economic Development Assistance Programs
Case Studies
Envisioning Sustainable Development: The Brundtland Commission Report, the Earth Summit, the Millennium
Development Goals, and Beyond
Theories of Sustainability
Weak Sustainability
Strong Sustainability
Practical Policy Implications
Sustainability Indicators
Indicators of Weak Sustainability
Indicators of Strong Sustainability
Case Studies in Measuring Sustainable Economic Development
United States
Sub-Saharan Africa, Latin America, and the Caribbean
Review Questions and Problems
Internet Links
References and Further Reading

15. Issues in Sustainable Production and Consumption
More Sustainable Energy Resources, Technologies, and Processes
Selected Renewable Energy Resources and Technologies
Industrial Ecology
Policies Promoting Sustainable Production and Consumption
Extended Producer Responsibility
Ecolabels: Factors Relating to the Success of Ecolabel Programs; Three Examples of Ecolabeled Goods
Taxes, Subsidies, and Ecological Tax Reform
Government Research and Development Funding
International Environmental Certification
Consumer Preferences and Sustainable Consumption
Review Questions and Problems
Internet Links
References and Further Reading

16. Issues in the Economics of Sustainable Local Communities
Sustainable Local Self-Governance of CPR Systems
Examples of Sustainable Local Communities and the Systems They Use for Governing CPRs
Torbel, Switzerland
Japanese Village Commons
Spanish Irrigation Commons
Localized Self-Governance of Fisheries
Fodder and Fuelwood Use in Panchayat Community Forests
Ostrom's Design Principles Associated with Sustainable Local Self-Governance of Common-Pool Resources
Retrospective on CPRs and Local Self-Governance
Integrating Sustainability into Local Economic Development
A Model of the Local Economy
Different Approaches to Economic Development
Case Studies: Arcata; The Cogtong Bay Mangrove Management Project; Sustainable Local Economic Devel-opment in South Africa; Moving Toward Sustainable Urban Planning in Curitiba, Brazil
Review Questions and Problems
Internet Links
References and Further Reading

About the Author

Comment(s): "This book is perfect for students who are studying economics within the broader context of a program in natural resources and environment. Unlike most textbooks in environmental economics, Hackett puts philosophical issues front and center, making sure to point out the ethical underpinnings of neoclassical economics. He also provides extensive coverage of sustainability, a topic of growing importance that has been ignored by many mainstream texts. This new edition is updated, easier to read, and includes helpful margin notes. I have used the book with master's degree students, and have been very happy with it. Highly recommended." -- Thomas P. Lyon, Director, Erb Institute for Global Sustainable Enterprise, University of Michigan

"The new 4th edition of Professor Hackett's textbook offers students wide-ranging and even handed exposure to the foundations of environmental and natural resource economics, and also does an outstanding job of explaining and illustrating how economic tools can be used to address the kinds of increasingly complex and interrelated environmental problems the future has waiting for students. It's a clearly written and versatile text with the right balance of intellectual and practical content and valuable links to advanced topics. The book clearly benefited from Professor Hackett's years of testing material out in the classroom and listening to students with and without economics backgrounds." -- Dennis M. King, University of Maryland

"Thirty-five years ago the field of environmental economics was a small specialty topic. It has since grown, along with awareness of environmental issues, to encompass the most important, challenging and interesting ideas in economics. Professor Hackett has done a tremendous job providing the history of economic ideas and mapping their relevance to the social and environmental concerns of the future." -- Dallas Burtraw, Senior Fellow, Resources for the Future

" Environmental and Natural Resources Economics is an excellent text for environmental natural and social science students new to economics. Economic fundamentals are clearly and concisely presented, with an appropriate focus on fundamental economic concepts such as scarcity and opportunity cost. The text also does an excellent job of covering the economics of natural resource allocation, including both non-renewable and common-pool resources. Finally, the text covers important contemporary topics in environmental and resource economics, including tradable permits and the political economy of environmental regulation, again, using a fairly non-technical, but still solidly theoretically grounded approach. The accompanying lecture slides and excel spreadsheets are also a useful resource for instructors." -- Dawn Parker, University of Waterloo, Ontario Canada

"Hackett provides a comprehensive coverage written in a clear and engaging style. All the tools (e.g., theory, valuation, and benefit-cost analysis) are presented within the framework of environmental and resource economics rather than as a 'box of tools,' the more usual approach. The policy discussions are balanced and current with strong interdisciplinary focus. The chapter on fisheries is a gem." -- Michael McKee, Program Director, Experimental Economics, Center for Economic Research & Policy Analysis, Appalachian State University

"Hackett's new edition stands out in a crowded field of textbooks. It is difficult to present the key concepts from both environmental and natural resource economics in a single text. Hackett explains the conceptual cores of both fields with wisdom, clarity, and enthusiasm, illustrating with abundant interesting and relevant examples drawn from current policy debates. The coverage spans foundational concepts in environmental and resource economics found in other texts but also less-commonly covered material on ethics, self-governance, political economy, compliance, market power, environmental justice, sustainability, and green markets. The text is packed with visually appealing figures, tables, side-bars, references and other pedagogical devices, combined with fact-filled and balanced discussions of contemporary policy issues. Overall this is an excellent text that should prove stimulating and informative to students." -- James Wilen, University of California, Davis

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