Description
Book SynopsisThis lucid, up-to-date book takes a fresh look at the application of cost-benefit analysis (CBA) to environmental problems ranging from wildlife protection to global warming.
Cost-Benefit Analysis and the Environment is structured into two parts. Part one provides a critical up-to-date account of the theory and practice of CBA as applied to the environment. Part two focuses on a number of specific case studies, in particular ozone damage to agricultural crops, wilderness land use, recreation and nitrate pollution. The application of CBA to the greenhouse effect is used to illustrate the limitations of the method. The book summarizes the major problems CBA faces in environmental application.
This book will be highly relevant for the growing number of undergraduate and post-graduate courses in environmental economics and management, as well as being of interest both to academics researching in these areas, and to other professionals concerned with project appraisal and the environment.
Trade Review'. . . a rewarding reference and an invaluable teaching text, and one which should capture students' imaginations and interests in environmental economics.'Table of ContentsPart 1: introduction - about this book, a short history of cost-benefit analysis, the structure of a cost-benefit analysis, a preview of major problem areas, Appendix 1.1 example of a CBA; the welfare foundations of CBA - consumer welfare theory, producer welfare theory, conclusions; valuing environmental goods (1) - the contingent valuation method - introduction, theoretical basis, the application of CVM, problem areas in CVM, CVM and non-use values, conclusions, Appendix 3.1 - the contingent ranking method; valuing environmental goods (2) - the hedonic pricing method - introduction, the characteristics theory of value, how the method works, problems with the HP method, conclusions; valuing environmental goods (3) - the travel cost method - introduction, the basic method, problems with the travel cost method, the hedonic travel cost model, conclusions, Appendix 5.1 - travel cost data; valuing environmental goods (4) - production function approaches - introduction, the avoided cost approach, dose-response functions, conclusions; how good are our valuation methods? - introduction, repeatability, validity, what do our value measures measure?, conclusions, Appendix 7.1 - reference operating conditions; discounting and the environment - introduction, the choice of discount rate, intergenerational transfers - equity and ethics, political choice of the social discount rate, conclusions, Appendix 8.1 - risk and the discount rate; irreversibility, ecosystem complexity, institutional capture, and sustainable development - introduction, irreversibility, ecosystem complexity, institutional capture, cost-benefit analysis and sustainable development, conclusions. Part 2: tropospheric ozone damage to agricultural crops - introduction, tropospheric ozone pollution, defining dose, deriving dose-response functions from crops, response functions in economic assessments, regional economic assessments of crop losses, economically important aspects of response functions, conclusions; costs and benefits of controlling nitrate pollution - introduction, controlling nitrate pollution - costing the policy options, the benefits of reducing nitrate pollution, conclusions.
