Daniel J. Phaneuf - A Course in Environmental Economics: Theory, Policy, and Practice

Cambridge University Press is part of the University of Cambridge.

It furthers the Universitys mission by disseminating knowledge in the pursuit of education, learning, and research at the highest international levels of excellence.

Daniel J. Phaneuf and Till Requate 2017

This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press.

First published 2017

Printed in the United States of America by Sheridan Books, Inc

A catalogue record for this publication is available from the British Library

Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party Internet Web sites referred to in this publication and does not guarantee that any content on such Web sites is, or will remain, accurate or appropriate.

This book grew out of discussions we had more than ten years ago, when we were both teaching graduate courses in environmental economics at our respective universities in Germany and the United States. Though our interests and skills were different Requate is a theorist/experimentalist, and Phaneuf an empiricist we both had the sense that there was something missing in the textbooks notational convention; (b) included contemporary and advanced topics missing in other sources; (c) reflected the increasingly empirical nature of environmental economics; and (d) conveyed the excitement and dynamism of a growing field. This book is our attempt to meet that need.

Our vision for the book is best explained by discussing its organization. We have divided the material into four parts. e.g. emission taxes, cap and trade programs, emission subsidies are equivalent in their economic efficiency properties.

Our economics has matured beyond an application of the theory of public goods and externalities to the environment.

The last four chapters of their connection to climate change and non-renewable resource policy.

Throughout ).

and identification of topics that we believe provide important opportunities for future research.

A distinguishing feature of the book is that we have used a single notational scheme across the four parts of the book in order to connect the various topics and minimize the cost of entry into each new concept. We have also included numerous numbered examples, which we use to describe relevant empirical) houses data for the empirical exercises as well as supplemental information and errata.

Finally, we have included a further reading section at the end of each chapter. It is here that we identify the original source material our discussion has drawn on, and highlight related and in some cases recent research contributions to the area. We have used this approach for two reasons. First, we wrote using a narrative format rather than a review article format, meaning we tried to avoid breaking the flow of description with a large volume of parenthetical references. Thus our citations in the main body of the chapters are usually reserved for attribution of specific ideas, identification of classic sources, and acknowledgment when we have used published material as a model for our textbook presentation. Second, we wanted to have a specific section in each chapter that would serve as a literature-organizing vehicle, where we could classify different areas of inquiry that fit under the chapters broad themes. We emphasize that our further reading sections are designed to be illustrative rather than comprehensive, and so we have not included citations to many (or even most) of the relevant papers. That said, a book this long that unfolded over many years will undoubtedly have failed to give proper credit in many places, and so the books website will include expanded versions of our further reading sections, which will be updated periodically.