The Theory of Environmental Policy

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Cambridge University Press, Feb 26, 1988 - Business & Economics - 299 pages
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In this book, Professors Baumol and Oates provide a rigorous and comprehensive analysis of the economic theory of environmental policy. They present a formal, theoretical treatment of those factors infuencing the quality of life. By covering both the theory of externalities and its application to environmental policy, the authors have retained the basic structure and organization of the first edition, which has become a standard reference in the field. In this edition, however, they have updated their analysis to incorporate recent research in enviromental economics.

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Introduction economics and environmental policy
On the theory of externalities
Relevance and the theory of externalities
Externalities definition significant types and optimalpricing conditions
Externalities formal analysis
Uncertainty and the choice of policy instruments price or quantity controls?
Market imperfections and the number of participants
Are competitive outputs with detrimental externalities necessarily excessive?
Introduction to Part II
Efficiency without optimality the charges and standards approach
Marketable emission permits for protection of the environment
Stochastic influences direct controls and taxes
Taxes versus subsidies a partial analysis
Environmental protection and the distribution of income
International environmental issues
National or local standards for environmental quality?

Detrimental externalities and nonconvexities in the production set
On optimal pricing of exhaustible resources
On the design of environmental policy

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About the author (1988)

William Jack Baumol was born in the South Bronx, New York on February 22, 1922. He served in the Army during World War II and got a job at the Agriculture Department, where he worked on allocating grain supplies to starving countries. He graduated from City College and enrolled in the London School of Economics in 1947, after initially being rejected. Less than six weeks after school started, he was hired to become a member of the faculty. He taught at Princeton University from 1949 until 1970 and then taught at New York University from 1971 until his retirement in 2014. As an economist, he identified Baumol's cost disease, which explains why the cost of services, like haircuts and college educations, rises faster than the cost of goods, like T-shirts. He published dozens of books, hundreds of papers, and several congressional testimonies on entrepreneurs, environmental policy, corporate finance, stock sales, the economics of Broadway theaters, inflation, and competition and monopolies. He died on May 4, 2017 at the age of 95.

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