Proect Engleza

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 policy considerations. This book is primary a theoretical expose of environmental and resource economics. To catch the student’s imagination and attention as well as to reinforce understanding of basic theoretical principles ,case studies and exhibits are incorporated into 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 policies and 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 natural world. 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 economist’s vision of the economy and 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 the general 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 the ecological 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 of ecology. 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 expounds two 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 of resource 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

– 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 of environmental 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 environmental damage; 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 to exciting 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 wellbeing 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 the achievement of this worthwhile objective. In these chapters, deliberate efforts are taken to evaluate the various standard valuation 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 between biophysical 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 three alternative 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 growth is 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 growth what 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

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 in fostering 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 have either 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 . poor sanitation 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 immediate attention 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 well organized 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. It’s distinguishing element is its explicit 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 environmental economics.