Read e-book online National Income and Nature: Externalities, Growth and Steady PDF

By J. J. Krabbe, W. J. M. Heijman (auth.), J. J. Krabbe, W. J. M. Heijman (eds.)

Since the 'environmental revolution' all started within the overdue Nineteen Sixties, economists have performed loads of paintings within the box of monetary theory-building at the upkeep of nature. in the meantime, environmental fiscal literature has swelled to a wide circulate of articles in journals of other signature. for this reason, a coherent monetary view of the phenomenon ofenvironmental degradation has emerged. numerous forms of 'green' public guidelines and their affects on either nature and the functionality of the economic climate were analysed. The feasibility ofspecific forms of coverage has additionally been mentioned. the purpose of the publication is to supply an perception into the methods economists examine the issues ofenvironmental pollutants and the depletion ofnatural source. To this objective a few articles were chosen. a few of them have a basic personality, others an utilized nature and are premiere, essentially orientated. The presentation of the gathering emphasizes our trust that economists may be able to convey a vital contribution to the layout of guidelines to guard nature. it truly is transparent that 'nature' and 'environment' may possibly not be considered as 'free presents' to society. fairly, they must be noticeable as scarce assets, and environmental disruption and source depletion as allocation difficulties. Ifa normal source is scarce, a cost has to be charged in response to the measure ofscarcity seeing that differently society should be faced with misallocations. during this connection there are themes that are of specific curiosity to economists.

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Extra resources for National Income and Nature: Externalities, Growth and Steady State

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Note that the use of a function also comprises the passive use of the function 'natural environment' in order to conserve the actual and potential utilities of ecosystems, now and in the future, and to retain the diversity of species of our planet. Competition between functions can take all sort of forms. However, in most cases by far it is a question of the environment being used for current production and consumption activities at the expense of other desired use or (with a certain degree of probability) of future possible uses, including production and consumption.

8 The second problem pertains to the construction of shadow prices. National income is recorded in market terms. For confrontation of environmental losses with this figure it is therefore necessary to construct shadow prices for environmental functions that are directly comparable with market prices. For this a demand curve and a supply curve have to be construed. In the period 1969-1974, the Netherlands Central Bureau of Statistics attempted to do this (CBS, 1972, 1973, 1975; Hueting, 1980), with the following results.

Total costs to meet the erosion standard Total costs for Indonesia to meet the erosion standard The necessary calculations of the costs of the measures to meet the standards for a sustainable use of environmental functions are not new. In the Netherlands, the first publications of the Department for Environmental Statistics of the Central Bureau of Statistics resulted in estimates of the costs 44 R Hueting incurred by measures for various degrees of restoration of function (the supply curve, see above) (CBS, 1972, 1973, 1975; Hueting, 1980).

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