The Economics Of The Environment And Natural Resources

THE ECONOMICS OF THE ENVIRONMENT AND NATURAL RESOURCES THE ECONOMICS OF THE ENVIRONMENT AND NATURAL RESOURCES R. QUENTIN GRAFTON WIKTOR ADAMOWICZ, DIANE DUPONT HARRY NELSON, ROBERT J. HILL AND STEVEN RENZETTI © 2004 by R. Quentin Grafton, Wiktor Adamowicz, Diane Dupont, Harry Nelson, Robert J. Hill, and Steven Renzetti 350 Main Street, Malden, MA 02148-5018, USA 108 Cowley Road, Oxford OX4 1JF, UK 550 Swanston Street, Carlton, Victoria 3053, Australia The right of R. Quentin Grafton, Wiktor Adamowicz, Diane Dupont, Harry Nelson, Robert J. Hill, and Steven Renzetti to be identified as the Authors of this Work has been asserted in accordance with the UK Copyright, Designs, and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs, and Patents Act 1988, without the prior permission of the publisher. First published 2004 by Blackwell Publishing Ltd Library of Congress Cataloging-in-Publication Data The economics of the environment and natural resources/by R. Quentin Grafton … [et al.]. p. cm. Includes bibliographical references and index. ISBN 0-631-21563-8 (hardcover: alk. paper) – ISBN 0-631-21564-6 (pbk.: alk. paper) 1. Environmental economics. 2. Natural resources. 3. Environmental policy. I. Grafton, R. Quentin, 1962HC79.E5L42 2004 333.7–dc21 2003007539 A catalogue record for this title is available from the British Library. Set in 10/12 1/2 ; Book Antique by Newgen Imaging Systems (P) Ltd, Chennai, India Printed and bound in the United Kingdom By MPG Books, Bodmin, Cornwall For further information on Blackwell Publishing, visit our website: http://www.blackwellpublishing.com This book is dedicated to the special people in our lives who share both our joys and sorrows (and everything in between!): Ariana, Brecon, and Carol-Anne; Sharon, Beth, and Kate; Allie and Nicholas; Alex and Joanne; Miriam. CONTENTS List of Figures List of Tables List of Boxes Preface Acknowledgements Introduction Part I Economics of the Environment 1 Models, Systems, and Dynamics 2 Property Rights 3 Economics of Pollution Control ix xii xiii xv xvi 1 5 7 36 61 Part II Resource Economics 4 Bioeconomics of Fisheries 5 Forestry Economics 6 Water Economics 7 Economics of Non-renewable Resources 93 95 129 161 193 Part III Environmental Valuation 8 Environmental Valuation: Introduction and Theory 9 Environmental Valuation: Stated Preference Methods 10 Environmental Values Expressed Through Market Behavior 219 221 249 277 Part IV Global Environment 11 Growth and the Environment 12 Environmental Accounting 313 315 344 viii 13 14 15 16 CONTENTS Tra