Environmental Policy and the Economy PDF
Preview Environmental Policy and the Economy
CONTRIBUTIONS TO ECONOMIC ANALYSIS 206 Honorary Editor: J. TINBERGEN Editors: D. W. JORGENSON J. WAELBROECK NORTH-HOLLAND AMSTERDAM · LONDON · NEW YORK · TOKYO ENVIRONMENTAL POLICY AND THE ECONOMY Edited by: Frank J. DIETZ Department of Public Administration Erasmus University Rotterdam The Netherlands Frederick van der PLOEG CentERfor Economic Research Tilburg University The Netherlands Jan van der STRAATEN Department of Social Economics Tilburg University The Netherlands 1991 NORTH-HOLLAND AMSTERDAM · LONDON · NEW YORK · TOKYO ELSEVIER SCIENCE PUBLISHERS B.V. Sara Burgerhartstraat 25 P.O. Box 211, 1000 AE Amsterdam, The Netherlands Distributors for the United States and Canada: ELSEVIER SCIENCE PUBLISHING COMPANY INC. 655 Avenue of the Americas New York, N.Y. 10010, U.S.A. ISBN: 0 444 88975 2 © 1991 ELSEVIER SCIENCE PUBLISHERS B.V. 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, without the prior written permission of the publisher, Elsevier Science Publishers B.V, Permissions Department, P.O. Box 521, 1000 AM Amsterdam, The Netherlands. Special regulations for readers in the U.S.A. - This publication has been registered with the Copyright Clearance Center Inc. (CCC), Salem, Massachusetts. Information can be obtained from the CCC about conditions under which photocopies of parts of this publication may be made in the U.S.A. All other copyright questions, including photocopying outside of the U.S.A., should be referred to the copyright owner, Elsevier Science Publishers B.V. unless otherwise specified. No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. pp. 241-280: Copyright not transferred. PRINTED IN THE NETHERLANDS INTRODUCTION TO THE SERIES This series consists of a number of hitherto unpublished studies, which are intro- duced by the editors in the belief that they represent fresh contributions to economic science. The term "economic analysis" as used in the title of the series has been adopted because it covers both the activities of the theoretical economist and the research worker. Although the analytical methods used by the various contributors are not the same, they are nevertheless conditioned by the common origin of their studies, namely theoretical problems encountered in practical research. Since for this reason, busi- ness cycle research and national accounting, research work on behalf of economic policy, and problems of planning are the main sources of the subjects dealt with, they necessarily determine the manner of approach adopted by the authors. Their methods tend to be "practical" in the sense of not being too far remote from appli- cation to actual economic conditions. In additon they are quantitative. It is the hope of the editors that the publication of these studies will help to stimulate the exchange of scientific information and to reinforce international cooperation in the field of economics. The Editors PREFACE This volume arose out a conference on 'Economics of the Environment' or- ganised by the CentER for Economic Research at Tilburg University, the Netherlands, 17-19 September 1990. The editors are grateful to the helpful and constructive comments of all the referees on earlier versions of the paper that were presented at the conference. Without these comments and sug- gestions this volume would have been less good. The editors are even more grateful to Nicole van Boxel and Josette Janssen for the excellent organisation of all matters related to the conference, the splendid typing and conversion of all manuscripts in Latex, and the extremely careful proof-reading of this volume. Without their undivided devotion to this project this volume would never have seen the light. Finally, the editors are grateful for the financial assistance of the Department of Public Administration, Erasmus University Rotterdam, the Department of Social Economics, Tilburg University, and the CentER for Economic Research, Tilburg University. July, 1991 Frank Dietz Rotterdam / Tilburg Frederick van der Ploeg Jan van der Straaten LIST OF CONTRIBUTORS David G. Abler Department of Agricultural Economics and Rural Sociology Weaver Building The Pennsylvania State University University Park, PA 16802 U.S.A. Frank Beckenbach Institut für Ökologische Wirtschaftsforschung Giesebrechtstraße 13 1000 Berlin 12 Germany Floor Brouwer Agricultural Economics Research Institute Conradkade 175 2502 LS The Hague The Netherlands Stephen Craig National Rivers Authority Leeds England United Kingdom Thomas D. Crocker Department of Economics University of Wyoming Laramie, WY 82071 U.S.A. χ List of Contributors Frank J. Dietz Department of Public Administration Erasmus University Rotterdam P.O. Box 90153 3000 DR Rotterdam The Netherlands Wim Hafkamp TRN Groep/Voider k Vis P.O. Box 96916 2509 JH The Hague The Netherlands Nick Hanley Department of Economics University of Stirling Stirling FK9 4LA Scotland United Kingdom Annemarth Idenburg Faculty of Public Administration University of Twente P.O. Box 217 7500 AE Enschede The Netherlands Alan Ingham Department of Economics University of Southampton Southampton S09 5NH England Jari Kuuluvainen Department of Economics Finnish Forest Research Institute P.O. Box 37 SF-00381 Helsinki Finland List of Contributors XI Joan Martinez-Alier Departament d'Economia i Historia Economica Edifice Β 08193 Bellaterra Barcelona Spain Henk Peer Open University P.O. Box 2960 6401 DL Heerlen The Netherlands Marjan Peeters Faculty of Law Tilburg University P.O. Box 90153 5000 LE Tilburg The Netherlands Frederick van der Ploeg CentER for Economic Research Tilburg University P.O. Box 90153 5000 LE Tilburg The Netherlands Jason F. Shogren Department of Economics Iowa State University Ames, IA 50011 U.S.A. James Shortle Department of Agricultural Economics and Rural Sociology Weaver Building The Pennsylvania State University University Park, PA 16802 U.S.A. xii List of Contributors Albert E. Steenge Faculty of Public Administration University of Twente P.O. Box 217 7500 AE Enschede The Netherlands Jan van der Straaten Department of Social Economics Tilburg University P.O. Box 90153 5000 LE Tilburg The Netherlands Olli Tahvonen Helsinki School of Economics Runeberginkatu 22-24 SF-00100 Helsinki Finland Alistair Ulph Department of Economics University of Southampton Southampton S09 5NH England Paul Veenendaal Agricultural Economics Research Institute Conradkade 175 2502 LS The Hague The Netherlands Harmen Verbruggen Institute for Environmental Studies Free University De Boelelaan 1115 1081 HV Amsterdam The Netherlands Environmental Policy and the Economy F. Dietz, F. van der Ploeg and J. van der Straaten (Editors) © 1991 Elsevier Science Publishers B.V. All rights reserved. 1 1. Environmental Policy and the Economy: An Introduction Frank J. Dietz, Frederick van der Ploeg and Jan van der Straaten 1 Increasing Concern for Environmental Quality Since several years public concern for environmental issues has rapidly in- creased. The reasons are manifold. We only mention some of the ones which are most important in our view. First, deterioration of the environment is no longer a matter of dying out of some species most people never heard of before. For many people en- vironmental deterioration has become an experience in their personal life, for example, as their health is affected by smog, as they visit artificial swimming- pools because the surface water next door is polluted, and as is discovered they live on chemical waste as is the case in several newly built quarters of Dutch cities. Secondly, some established economic interests face substantial losses from environmental deterioration. Clear examples are the recreation sector along the Adriatic coast of Italy and the loss of proceeds in agriculture as a result of acidification. A third reason given to the rapidly increased attention given to environmental issues is progress in scientific research. Scientific research continuously produces more information about the effects of human actions on the environment. That is the reason why we now worry about problems like the greenhouse effect and holes in the ozone layer. A fourth reason - or perhaps it is a result of the growing concern about the environmental quality - is moral indignation. Western countries use a far greater part of the world's natural resources than is reasonable. Moreover, future generations will inherit an environment of inferior quality compared to
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