If environmental protection is costly, how much
should we spend on pollution control? Is it worth
reducing pollution to zero, or should we accept some
level of pollution because of the economic benefits
associated with it? How can we assess the benefits that
people get from a less-polluted atmosphere? In broad
terms, environmental economics looks at how economic
activity and policy affect the environment in which we
live. Some production generates pollution, such as power
station emissions causing acid rain and contributing to
global warming, but household consumption decisions also
affect the environment, where more consumption can mean
more waste sent to polluting incinerators. However,
pollution is not an inevitable consequence of economic
activity - environmental policies can require polluting
firms to clean up their emissions, and can encourage
people to change their behaviour, through environmental
taxes on polluting goods, for example. Generally,
though, these measures will involve some costs, such as
installing pollution control equipment. So there's a
trade-off: a cleaner environment, but economic costs.In
recent years, many economists have argued for greater
use of incentive in the form of pollution charges and
emissions trading rather than more traditional direct
regulation of polluters. In this Very Short
Introduction, Stephen Smith discusses environmental
issues including pollution control, reducing
environmental damage, and global climate change
policies, answering questions about how we should
balance environmental and economic considerations, and
what form government policies should take. Including
many illustrative case studies and examples he shows
that this is an exciting field of economics, and one
that is at the heart of many public debates and
controversies. |
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