8/14/2019 Proect Engleza

1/3

Principles of environmental economics

Ahmed Hussen

The primary objective of this book is to present the economic and ecological

principles essential for a clear understanding of complex environmental issues and policyconsiderations. This book is primary a theoretical expose of environmental and resource

economics. To catch the students imagination and attention as well as to reinforce

understanding of basic theoretical principles ,case studies and exhibits are incorporatedinto most of the chapters.

The book consists of fourteen chapters ,which are grouped into five parts: Part 1

The conceptual starting points of economics and ecological studies of environmental

resources and their scarcities; Part 2 and 3 Environmental economics, theories policiesand valuation methods; Part 4 The economy and the environment : in search of the

optimal scale of an economy and Part 5 population poverty and the environment.

Over the years there has been a pronounced dispute between the standard view of

economists and that of ecologists concerning humans` ability to coexist with the naturalworld. Part 1 of the book which consists of two chapters , Chapter 1 and 2 examines the

economic and the ecological perspectives on environmental resources and their

implications for the economic and the natural world.

Chapter 1 examines what could be called the economists vision of the economyand its relationship with the natural world. What can be observed from the discussion in

this chapter is the treatment of the natural environment as one of the many important

assets that can be used to satisfy human needs. In this regard the emphasis is on thegeneral problems of resource scarcity . This being the case the roles of consumers`

preferences , efficiency , markets and technology are stressed.Chapter 2 is intended to provide the assumptions vital to understanding theecological perspective on natural resources ( elements crucial to the sustenance of human

economy) . More specifically in this chapter economics students are asked to venture

beyond the realm of their discipline to study some basic concepts and principles ofecology. The primary objective is to familiarize students with carefully selected

ecological concepts and principles so that they will have by the end of the chapter a clear

understanding of ecologists` perspectives on the natural world and its relationship with

human economy.

Part 2 comprises five chapters , Chapters 3-7. These chapters cover topics

normally included in standard texts on environmental economics. Chapter 3 expoundstwo key elements of environmental economics: first the key ecological and technological

factors that are essential to understanding the trade-off between increased economic

activity and environmental degradation , and second the reasons why a system ofresource allocation that is based on and guided by individual self-interest (hence , private

markets) fails to account for the social costs of environmental damage market failure.

Chapter 4 develops theoretical models and economic conditions that can be used

as a guide to control environmental pollution . In chapters 5 and 6 a number of pollution

8/14/2019 Proect Engleza

2/3

control policy instruments are discussed and evaluated. Finally , chapter 7 focuses on

pollution problems more specifically : acid rain , the depletion of ozone and global

warming.

Part 3 consists of two Chapters 8 and 9 . These deal with economic valuation ofenvironmental services. Some of the key concepts and issues addressed in these chapters

include : the issues of imputing values to environmental resources : the various standard

techniques used by economists to measure the monetary values in case of environmentaldamage; cost- benefit analysis and the ethics of discounting the future.

The valuation of the environment is one of the most important topics in

environmental economics as economists have been making significant advances in this

area over the past two decades. This area of environmental economics , could lead toexciting learning experience for the curious mind. Furthermore it constitutes the most

fertile ground for future mental resources . People are more likely to care about the well-

being of the natural environment once its value becomes more apparent to them . The two

chapters in Part 3 explore the efforts the economists have been making towards theachievement of this worthwhile objective.

In these chapters, deliberate efforts are taken to evaluate the various standardvaluation techniques through an ecological lens. Furthermore attempts are made to offer

alternatives to traditional cost-benefit analysis . These alternatives include cost

effectiveness, the precautionary principle and environmental impact analysis. Part 3 also

discusses at some length risk assessment and management .

In the academic world the nature and the extent of the relationship betweenbiophysical limits and economic growth has been a subject of controversy for well over a

century. In Part 4 of this book , which consists of four chapters ( chapters 10-13) the

essence of this controversy is systematically examined. In chapters 10, 11 and 12 threealternative perspectives on biophysical limits to economic growth are explored namely

the Malthusian , the neoclassical and that of ecological economics . In chapter 13 the

economics of sustainable development is examined.The issue of scale is given a very inadequate treatment in most standard textbooks

on environmental and resource economics. In general topics that relate to this issue are

placed toward the end of the text and tend to be discussed in a rather matter-of-fact style.

In this book the idea that there could be ecologically imposed limits to economic growthis taken seriously . The main questions addressed in part 4 are as follows. Can we

expect unlimited economic growth in a world endowed with finite resources ? If

ecological limits are important factors in determining future trends of economic growthwhat steps or precautions should be taken to avoid transgressing these biophysical

limits ? Clearly the key issue here is scale the size of the human economy relative to the

natural environment . To that extent the focus is not on efficiency but on sustainability .

Part five consists of one chapter , Chapter 14 which investigates the complex

interrelationships between population , poverty and environmental degradation in the

8/14/2019 Proect Engleza

3/3

developing countries of the world. The chapter starts with a detailed analysis of the

population problem both globally and with a particular focus on the developing countries.

This is followed by an exploration of the situation that a link exists between poverty ,population and environmental degradation. The analysis of this situation to its fullest

extent constitutes a large part of the material presented in part five.

Some of the major issues addressed in this chapter include the following :1 A close look at the difficult nature of the poverty that is so prevalent in the

developing countries and how this economic condition contributes to population growth

and environmental degradation.

2 The significance of gender equality more specifically improvement in the

economic status of women as an important social variable in the amelioration of

environmental degradation and population control.

3 Strategies to empower the poor in such a way that they will be motivated to take

action that is not only consistent with their economic security but also causes least

amount of damage to their environmental assets.

4 The changes in governance structures that are considered to be crucial infostering the development and implementation of institutional programs or policies to

protect the environment while meeting the basic needs of the poor.

5 The extent to which international development aid programs and trades haveeither been benefiting or hurting the economic development aspirations and ecological

integrity of developing countries.

This chapter deals with real problems facing about three fourths of the world

population. These problems are real in a sense that they constitute visible incidences of

malnutrition and indeed hunger in a significant percentage of the world population . poorsanitation facilities that expose people to high levels of health risk ; large-scale land

degradation and critical water shortage that continue to contribute significantly to loss in

agricultural productivity .These are serious problems and they demand the immediateattention of the global community to work together for causes that are intended to achieve

a sustainable development on a global scale.

The second edition builds on the strengths of the first It is well written wellorganized and provides a broad survey of environmental economics from a range of

perspectives. It is a well researched and comprehensive text that offers and alternative

and refreshing perspective on environmental economics. Its distinguishing element is itsexplicit consideration of ecology , ecological economics and sustainable development.

With international case studies and examples this book will provide an excellent

choice for introducing both students and other academics to the world of environmentaleconomics.