Tietenberg Tom, Lewis Lynne. Environmental & Natural Resource Economics
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types of property regimes, 28–31
water. See Water
Resource taxonomy, depletable reources,
119–122
Retirement effect, population effects in economic
development, 569
Retiring allowances, 417
Return flows
contamination of, 473
water use and, 215
Revealed preference methods, 90
Revenue effect, pollution control, 383–384
“Right-to-know laws,” 516
Riparian rights, 212–213
Risk-averse behavior, 61
Risk evaluation, in valuing environment, 59–61
Risk-free cost of capital, 61, 64
Risk-neutrality, 61
Risk perception, environmental justice and,
524–525
Risk premium, costs of capital, 62, 64
Rivers, contamination of, 472
Roads
congestion pricing, 461–463
construction and maintenance costs, 444
perverse incentives, 446
RPS (renewable portfolio standard), 165
Safe Drinking Water Act, 483
Safe harbor agreements, 252–253
Sanctions, mobile-source air pollution, 456
Sanitation, accessibility of water and, 4
Saudi Arabia, oil reserves in, 150
Savings, capital accumulation and, 570
Scale effect, pollution levels and, 545
Scarcity
Ehrlich-Simon bet, 188
exploration and discovery and, 184–185
factors mitigating, 184
food crisis, 263
formulating global food scarcity hypothesis,
264–266
intertemporal, 106
potential for water scarcity, 205–208
societies reacting to, 2–3
substitution and, 186–187
technological progress and, 186
testing global food scarcity hypothesis,
266–267
661Subject Index
Scarcity rent
impact of price controls on, 144–146
producer surpluses and, 24
Scrap
disposal costs and scrap market, 191
old scrap vs. new scrap, 189
processing costs in recycling, 182–183
Sea level changes, climate change and, 425–426
Second Equimarginal Principle (Cost-Effectiveness
Equimarginal Principle), 67
Second law of thermodynamics, 18
Secondary standard, pollution control, 398–399
Secondary vs. primary effects, in benefit
estimation, 57–58
Self-correction
market capacity for, 593
vs. regulation, 548
Self extinction premise, 1–3
Self-sufficiency
as inefficient solution to energy needs, 153–154
the law of comparative advantage and, 283
Sending areas, TDR programs, 249
Senior claims, in water sharing rights, 223
Sewage, discharge without treatment, 4
Sierra Club, 485
The Skeptical Environmentalist (Lomborg), 11
Smog
particulate and smog controversy, 402
trading, 409–410
vehicle emission identified as key cause, 446
Social marginal cost, 25, 39, 51, 468
Social policies, inefficiencies created by, 37–38
Social security, children as traditional basis
for, 581
Socialist economies
centralized planning and pollution, 22
property rights, 22
Societies
economics tools for understanding scarcity, 6–7
road ahead, 8
scarcity and, 2–3
Soil erosion, as environmental cost, 272–274
Solar energy
active and passive, 172
photovoltaics, 171
Solid wastes, 50
South Africa
water market assessment, 222
SPR (Strategic Petroleum Reserve), 155, 156
Sprawl
inefficiencies in land use, 240–244
zoning and, 242
Stable equilibrium, wildlife populations, 321
Starting-point biases, contingent valuation, 83
Stated preference methods, 85–90
State of the World 2004 (Worldwatch Institute), 11
State-property regimes, 28
Static efficiency
in allocation of resources, 20–22
monopolies and, 33–34
Static efficient sustainable yield, 323–325
Stationary population, 567
Stationary source, air pollution, 397
Statistical significance, in population growth, 572
Statutory law
remedies, 532–534
toxic substance and, 527–528
Stern-Nordhaus debate, climate policy, 63
Stock pollutants
efficient allocations, 361–362
overview of, 360
water pollution and, 479
Strategic biases, contingent valuation, 83
Strategic Petroleum Reserve (SPR), 155, 156
Stratosphere, 428
Strict liability, in Common Law, 527
Strong form of the global scarcity hypothesis, 266
Strong sustainability, 114
Stumpable value, 303
Suboptimal allocation, 51
Subsidies
agricultural, 281–283
alternative energy, 188–189
fishery policies, 345
fuel efficient vehicles, 464
mobile-source air pollution, 444
municipal wastewater treatment, 493–494
raw materials, 191–192
U.S. energy needs and, 156
water policies, 215–216, 223–232
Substitution
renewable substitutes, 125–127, 170
resource scarcity and, 186–188
Sulfur allowance auction, 415
Sulfur allowance program, 416–418
Sulfur emissions
command-and-control approach to, 406
as regional pollutants, 411
sulfur allowance program, 416–418
662 Subject Index
Superfund Act, 528
Superfund National Priorities List, 528
Superfund site, 519, 524–525, 534
See also Hazardous waste
Surface pollutants
cost-effective allocation of, 376
many-receptor case, 381–382
single-receptor case, 376–381
Surface water
allocation of, 208–212
contamination of, 472–473
overview of, 206–207
pollution, 472
Surpluses, scarcity rent and, 24
Survey methods
contingent ranking, 88
cost estimation, 58–59
Sustainability criterion, 110–113
Sustainable development
agricultural policies encouraging, 279
agricultural practices and, 273–274
challenge of, 5
consumption and, 11
economic growth and, 595
ecotourism and, 257
efficiency and, 542–544
forest management, 306–307
intertemporal fairness and, 108–113
introduction to, 538
market forces and, 6–7
population and, 564, 567
scenarios for, 539–542
strong sustainability, 114
survival vs., 248
trade and. See Trade
trends in, 594
weak sustainability, 112–114
Sustainable forestry, 306–307
Sustainable yield, in population growth, 322
Synergism, 511
TAC (total allowable catch), 342
Take back principle, producer role in recycling, 196
Tangible benefits, in benefit estimation, 58
Tariffs, approaches to U.S. energy needs, 156
Tax credits, wind power, 175
Taxes
environmental taxes, in China, 367
fishery-related policies, 338–339
land use conversion and, 243–245
product charges as indirect environmental
tax, 388
property tax adjustments, 256
recycling policies, 195
Taxes vs allowances, uncertainity, 387–388
Taylor Grazing Act (1943), 253
TDRs (Transferable Development Rights), 249–250
Technique effect, pollution levels and, 545
Technological progress
agriculture and, 269–270
iron ore industry example, 130
mobile-source air pollution, 456–457
resource exploitation and, 129–131
resource scarcity and, 186
Theory of demographic transition, 576–578
A Theory of Justice (Rawls), 108
Thermal pollution, water pollution, 477
Third party victims, toxic substance pollution,
517–518
Tidal power, 173
Tiered pricing, 225
Timber. See Forests
TMDL program, 483
Toll roads, 463
Total allowable catch (TAC), 342
Total cost, 364, 481
Total fertility rate, 566–568
Total willingness to pay (TWP)
benefit-cost analysis and, 21
value categories in, 80
Toxic Release Inventory (TRI), 520, 529
Toxic storage and disposal facilities (TSDFs), 522
Toxic substance pollution
common-law and, 527–528
health effects, 510
international agreements, 530–532
introduction to, 508
nature of, 509
occupational hazards, 513–516
performance bonds and, 534–535
policy issues, 510–511
product safety, 516–517
Proposition 65 (Safe Drinking Water and Toxic
Enforcement Act of 1986), 530
statutory law and, 532–534
third party victims, 517–518
TRI (Toxic Release Inventory) program, 529
Toxic Substances Control Act, 527
Toxic waste. See Hazardous waste
Toxicity, 511
663Subject Index
Toxins, in fish, 478
Tradable permits, ozone depleting chemicals, 430
Trade
agricultural policies, 278
development and, 545
EKC (Environmental Kuznets Curve),
547–549
GATT and WTO and, 550–551
NAFTA (North American Free Trade
Agreement), 548
pollution havens and, 545–546
property rights and, 545
trade restrictions as environmental policy, 551
Traffic congestion, 467
See also Counterproductive policy design
Transaction costs, court regulation and, 41
Transfer costs, vs. real-resource costs, 338
Transferability, efficient property rights and, 23
Transferable Development Rights (TDRs), 249–250
Transfer coefficient, 377–378
Transfer cost, 338
Transport costs, 446
Travel-cost methods, as indirect valuation
method, 90–91
Trees. See Forests
TRI (Toxic Release Inventory), 520, 529–530
Tropical forests, valuing environment and, 48
Troposphere, 428
Tropospheric ozone depletion, 429
Trust funds, for habitat preservation, 314
TSDFs (toxic storage and disposal facilities), 522
Tsunamis
impact of environmental costs on households, 544
Two-part charges, water pricing, 225
Two-period model
efficiency of, 123
intertemporal fairness and, 103–107
TWP (total willingness to pay)
benefit-cost analysis and, 21
value categories in, 80
UEC (uniform emission charge), 490
The Ultimate Resource (Simon), 14
Unconventional oil, 157–159
U.N. Convention on International Trade in
Endangered Species (CITES)., 351
Underallocation, 145
Undervaluation bias, agriculture, 284
UNFCCC (United Nations Framework
Convention on Climate Change), 432
Uniform emission charge (UEC), 490
Uniformly mixed pollutants, 368
Uniform treatment, water pollution control, 490
United Nations Development Program
(UNDP), 558
United Nations Framework Convention
on Climate Change (UNFCCC), 432
See also Kyoto Protocol
United States Geological Society (USGS), 119
Uranium, 174–178
expense of building nuclear power plants, 159
issues regarding use as energy source, 159–160
See also Nuclear power
Urbanization
population growth and, 584–586
waste disposal and, 181
U.S.
agriculture trends, 269
dependence on oil imports, 154
Kyoto Protocol and, 432
mobile-source air pollution strategies,
446–449
population growth in, 565–568
toxic substance incidents, 508
water market assessment, 222
U.S Bureau of Economic Analysis, 555
U.S. Department of Interior, 81
User cost, 154–155
U.S. Farm Bill, 279
U.S. Mining Law, 191
Use values, resources, 79
USGS (United States Geological Society), 119
Usufructory rights, water, 213
Value of a statistical life (VSL), 91, 96, 367
Valuing the environment
accuracy and biases, 65–66
anthropocentric approach to, 47
attribute-based methods, 87–92
averting or defensive expenditures, 92
benefit estimation, 57–58
benefit transfers and, 87
contingent valuation, 82, 90
cost-effectiveness analysis, 66–68
cost estimation, 58–59
discount rates, 62–64
forest preservation and, 48
GIS (Geographic Information Systems)
for, 92–93
groundwater contamination example, 92
664 Subject Index
hedonic property and hedonic wage
approaches, 91
human life, value of, 93–97
impact analysis, 68–69
meta-analysis, 85, 87
methods for, 82
NOAA panel on contingent valuation, 85
Northern Spotted Owl example, 81
overview of, 74–75
passive use values in damage assessment, 89
pollution example, 75–79
potential biases, 83
reasons for, 75
risk evaluation, 59–61
travel-cost methods, 90
types of values, 79–81
undervaluing environmental amenities, 242–243
water value, 218
WTA (Willingness to Accept) vs. WTP
(Willingness to Pay), 83, 86
Variable cost, 24, 165, 369, 379–380
Vehicles. See Automobiles
Vertical equity, in environmental justice, 518
Volume pricing, in recycling rates, 192, 195, 225
Voters, special interest groups and, 35–37
Waste and electronic equipment (WEEE), 196
Waste disposal
costs of, 189
dealing with solid waste, 50
decision-making and, 189–191
disposal costs and scrap market, 191
pricing trash (Georgia example), 192
Water
accessibility of, 4
agricultural water pricing, 215–216
balancing instream and consumptive uses,
223–227
common property problems, 217–219
desalinization, 230
economic principles applied to water conservation
(California), 220
efficient allocations, 208
GIS and, 233
groundwater allocation, 211–212
importance of, 204
inefficiencies, 214
instream flow rights and, 217
municipal and industrial water pricing, 216–217
pricing and subsidies, 224–230
pricing methods (Canada), 229
privatization of water systems, 232–233
quality, 207
reclamation projects (Federal), 215–216
remedies for water problems, 219
riparian and prior appropriation doctrines,
212–214
scarcity potential, 205–208
surface water allocation, 208–212
transfer restrictions, 214–215, 219
transfers (Colorado), 221
valuing, 218
Water desalination, 230–231
Water pollution
ambient standards and zero-discharge goal,
485–486
atmospheric sources, 497
benefit-cost analysis, 503–504
contamination sources, 472–475
developing countries and, 499
effluent trading, 490
empirical studies, 489
European approach to, 498–499
fund pollutants, 476–477
incentives for controlling, 499
introduction to, 471
legal suits by citizens, 485, 502
legislative regulation, 480–483
municipal wastewater treatment subsidies,
493–494
national effluent standards, 486–490
nonpoint source pollution, 494–497
ocean pollution, 484–485
oil spills, 500–502
pretreatment standards, 494
Safe Drinking Water Act, 484
stock pollutants, 479
surface water and ground water
and, 472
toxins in fish and, 478
water quality trading, 490–493
Water Pollution Control Act (1948), 480
Water, pricing methods
block pricing, 227–228
flat fee, 227–228
Global Water International’s tariff
survey, 228
in Canada, 229
input and output pricing, 225
reforms, developing countries, 225
665Subject Index
traditional practice, 225
variable charge rate structures, 226
volume based structure, 226–227
World Cities and rate structures, 229
Water Quality Act (1965), 481
Water quality trading, 490–493
Watershed-based trading, 490–493
Water transfers
Colorado example, 221
reducing restrictions on, 219
restrictions on, 214–215
Water usage
block rate, increment, 227–230
Water utilities
pricing methods, 225–226
pricing policies, 216–217
Weak form of the global scarcity
hypothesis, 266
Weak sustainability, 110–113
Welfare measure, public development, 553
Wealth effects, property rules and, 40
Wealth estimates, 556
Wealth, World Bank estimates, 556
Website, companion to this book, 15
WEEE (waste and electronic equipment), 196
Welfare measure, of economic
development, 553
Welfare, sustainable levels, 540
Wet deposition, atmospheric pollution, 497
Wetlands, 243
Wetlands banking, 250–251
Wetlands Mitigation Banking, 251
Whales
ecotourism and, 349
open-access harvesting of Minke Whale, 330
preventing poaching, 349
Wilderness, loss of, 239
Wildlife
commercially valuable species. See Commercially
valuable species
habitat, 301
Zimbabwe approach to protecting, 352
Willingness to accept (WTA), 83–84
Willingness to pay (WTP)
applied to acid rain, 412
vs. WTA (willingness to accept), 83–84
Wind power
incentives for developing, 175
overview of, 171
pros/cons of promoting, 172
Women
income-generating activities as means
of fertility control, 585
increasing income earning potential of, 584
social status related to childbearing, 581
Working Assets Funding Source, 417
Workplace
occupational hazards, 513–516
susceptible populations to hazards in, 515
World Bank, 556
World Food Conference, 262
The World Heritage Convention,
310–311
World Wildlife Fund, 314
Worldwatch Institute, 11
WTA (willingness to accept), 83–84
666 Subject Index
WTO (World Trade Organization), 550–551
WTP (willingness to pay)
applied to acid rain, 412
vs. WTA (willingness to accept), 83–84
www.pearsonhighered.com/tietenberg (Companion
Website for this book), 15
Youth effect, population effects in economic
development, 569
ZEC (zoned effluent charge), 490
Zero-discharge goal, 485–486
ZEV (Zero Emission Vehicle) regulations, 452–453
Zipcars, 454
Zone of influence, pollutants, 360
Zoning, land use restrictions, 242