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Environmental Economics

Recent Advances in Environmental Economics (New Horizons in by Aart De Zeeuw, John List

By Aart De Zeeuw, John List

During this paintings, a bunch of special students from Europe and the united states examines quite a number topical matters in environmental and source economics. utilising state-of-the-art instruments, they have a look at one of the most major overseas and family matters on the leading edge of public coverage debates. the quantity has major subject matters: environmental coverage making inside a federalist context; and valuation concerns, together with experimental layout. past this, the sixteen chapters provide an outline of advancements within the box and current vital perspectives on urgent coverage concerns. a few of the chapters provide cutting edge methods and include unique empirical or experimental facts that may have massive implications for environmental coverage. As an entire, the quantity presents the reader with a willing knowing of a few of crucial theoretical and empirical paintings in environmental federalism, valuation and several other pertinent parts.

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There is the suggestion that for environmental matters that are strictly of ‘local’ interest (that is, Benchmark Case 2), a decentralized system of setting ambient standards seems appropriate. The ‘one-size-fits-all’ approach can result in large welfare losses compared to a system in which individual jurisdictions introduce standards that are the best suited to their own circumstances. The Dinan, Cropper and Portney study (1999), as discussed earlier, indicates, for a particular contaminant, the potentially significant magnitude of these losses from uniformity.

First, a basic finding that polluting firms are responsive in their location decisions to area differentials in the stringency of environmental regulations does not in itself prove that states or localities actually use environmental measures as a competitive instrument. In fact, irrespective of the actual facts on the location decisions in polluting industries, whether or not officials use environmental regulations for competitive purposes depends largely on perceptions. If policymakers think that these regulations matter, then they may well craft environmental legislation in the light of their objectives for economic development.

As Goklany documents, there were in fact ‘broad improvements in air quality before federalization. The race, if any, seems to be in the opposite direction, particularly for those pollutants associated with . . the greatest public health risks’ (p. 150). But there is a second part to my proposed test. Following the mandates of the CAA of 1970, the US EPA introduced ambient air quality standards consisting of maximum allowable concentrations of the criteria air pollutants applicable to every area in the country.

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