Environmental Policy, Sustainability and Welfare

'This new textbook presents a detailed analysis of the theoretical insights which economics has been able to shed on the issue of pollution control in both static and dynamic models. The text will be very useful to PhD students who are interested in modelling pollution taxes and tradeable permit markets. A fascinating extension to how governments can correct market failures with respect to possible ''catastrophic'' problems brought about by investments in nuclear energy is also presented. The second part of the book extends the analysis, looking at the problem of measuring social welfare over time, and in particular how a genuine savings indicator can be produced, and then adjusted for imperfections in the economy. This links to current theoretical and policy work on ''inclusive wealth'' and natural capital, which is proving very influential within and beyond economics. The issues of commodity taxes, environmental policy within a federal system, and how best to respond to transboundary externalities such as climate change are also analysed. For those readers looking for a detailed, thoughtful and technical treatment of these subjects, this book will provide a valuable resource.' --Nick Hanley, University of St Andrews, UK

Thomas Aronsson, Professor of Economics, Kenneth Backlund, Assistant Professor of Economics and Karl-Gustaf Loefgren, Professor of Economics, Umea University, Sweden

Contents: 1. Introduction 2. A Brief History of Economics and Environmental Policy 3. Markets and Externalities 4. Welfare and the Environment: General Equilibrium Models 5. Nuclear Power and Externalities 6. Welfare Comparisons, Public Policy, and Sustainable Development 7. Heterogeneity and Redistribution 8. Efficiency, Inefficiency, and Transboundary Externalities Index