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Utilizes basic concepts of economics and finance to explain the relationship of the economy to the ecosystem, seeing the ecosystem as imposing biophysical constraints on economic growth. Means of sustainable economic development and sustainable resource use are stressed. Background material and alternative, more efficient, problem-solving approaches are included.
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Tony Prato is professorofresource economics atrd matragcmetrt, and director of the center forAgriorln'al, Resourceand Environmental sysrems at the univercity of Mssouri-columbia He has writtcn extensiveryon îhe assessment and management of nanral resounces" @ f998 [sn 4 grnreUniversity presq Ameg Iowa 5fi)14 All rigbts reserved Authorization to photocopyitems for interoal or personaluse, or the internal or per_ sonaluseof specificclients,is grantedby Iowa starc university press, provided th*r the basefee of $'10 per copy is paid directly ,o the copyrigùt clerance center,zl CongressStreet, Salem.MA 0f970. For thoseorgaizations th*r have been granted a photocopy licenseby ccc a s€piuatesystemofpayments has becnasanged-Tbe fee codefor'se* of the TransactionalReporting ser'ice is Ggr3&293&0r9s $.10. e) Prinred on acid-freepaperin tbe United Statesof America First editiou, 1998 International Stadard Book Number Ggl3&2g3g{ Library of CongressCaraloging-itr-publicationDaa Prato,Tbny NafiEal resourceand environmentaleconomics/ Tony prato._lst.ed. pcEL Includes bibliographical rcferencesand indcrrsBN0-813&2y384 l. Naoral resorrces-€conomic aspecB.Z Envhonmeatal economics. I. Title. 'IC2LYI3 1998 33334c2L g,_*,ga3 Lastdigitistheprintnunben 9 g 7 6 5 4 3 2 | Contents Prcfiace xÍ Acknowledgments, xiii Importance of Natural Resourcesand Environnent Nature and Importance of Problems 3 Global Warming 4 Ozone Depletion 5 Acid Deposition 7 Conservation of Biological Diversity 8 Tempora[ Scientific and PolicyAspects l0 Contuiburing Factors 1l Po'pulation 11 Per Capita Resourc-eUse 13 EnvironrnentatDamages 14 Technology 15 Approaches to Resource and Environmental f,ssnes 17 RoIe of Economícs 1!) Reductionist versrrsHolistic Science 20 gnrnrnary 2l Questions for Dirscussion Xz trhrtherReadings Notes 2. 23 23 Economic and Flnancial Concepts in Resource ll{anagement Conzumption and Demand Theory 2il Utility Function and Indifference Map ZB Constraints 29 HouseholdEquilibrium 31 hoductionand SupplyTheory 33 Production Function and Isoquant Map Constraints 35 Efficientlnput Use 37 Firm's InpufDemand Curve 38 Efficient Ouput 40 Ùfarket Equilibrium 4l Ma*et Demand and Supply 4 Example of Market Equilibrium 48 34 27 vi Contents hesent Value 49 SummilY 51 Questionsfor Discussion Sz fhrtherReadings 53 Ffistorical Views of Natural and Environmental Resource Capacity Ss F,conomic Views Ss ClassicalEconomics 55 NeoclassicalEconomics 59 Conserationism 60 Contenporar5r Views T.imitsto Growth 62 OtherFactors 62 63 Indicators of Resource Capacit5r 65 Physical Measures 65 Economic Measures 67 EnvironmentalResources 6g Summ4y 6E QuestÍons for Discussion Further Readings 70 70 Notes 7l 4. Economy and Envirorunent Circular flow Economy 73 73 Material Balances 75 EcologicalEconomics 7t Sustainable Development EO SustsinableResourceUse g3 Summsr-Jr E6 Questions for Discussion FurthcrReadings t7 g7 Notes E7 5. ,^hoperty Rights and Externalities 9l Markets and Efficient propert;r Rights Markets 91 Efficient prropertyRights 93 Transaction Costs 95 IVIarket Failures 96 Conúents vu Common Property and OpenAccess Resources 9? Public Goods l0O Extemalities 100