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Environmental Economics

Environmental & Natural Resource Economics, 9th Edition by Tom Tietenberg

By Tom Tietenberg

Environmental and ordinary source Economics takes a policy-oriented strategy, introducing monetary conception within the context of debates and empirical paintings from the sector. scholars go away the path with an international standpoint of either environmental and traditional source economics. For all readers attracted to environmental and ordinary source economics.

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Additional resources for Environmental & Natural Resource Economics, 9th Edition

Sample text

Ecosystems will be subjected to unaccustomed temperatures; some will adapt by migrating to new areas, but others may not be able to adapt in time. While these processes have already begun, they will intensify slowly throughout the century. Climate change also has an important moral dimension. Due to their more limited adaptation capabilities many Developing countries that have produced relatively small amounts of greenhouse gases are expected to be the hardest hit as the climate changes. Dealing with climate change will require a coordinated international response.

Most natural resource industries, however, do give rise to rent and, therefore, producer’s surplus is not eliminated by competition, even with free entry. This producer’s surplus, which persists in long-run competitive equilibrium, is called scarcity rent. David Ricardo was the first economist to recognize the existence of scarcity rent. Ricardo suggested that the price of land was determined by the least fertile marginal unit of land. Since the price had to be sufficiently high to allow the poorer land to be brought into production, other, more fertile land could be farmed at an economic profit.

2 examines the controversial question of whether or not societies are on a self-destructive path. In part, the differences between these two opposing views depend on whether human behavior is perceived as a positive or a negative feedback loop. If increasing scarcity results in a behavioral response that involves a positive feedback loop (intensifies the pressure on the environment), pessimism is justified. If, on the other hand, human responses serve to reduce those pressures or could be reformed so as to reduce those pressures, optimism may be justified.

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