The Addison-Wesle Series in Economics Abel/Bernanke Macroec れ 0 〃れ CS Bade/Parki FO ″れ d 0 ofEconomics Bierman/F rnandez Game T 20 盟″ん ECO れ om た Binger/Ho man Microec れ 0 襯た s 盟″ん C 記 c Boyer Principl Tr の〃 0 われ ECO れ 0 〃 2 CS Branson Macroe れ 0 〃 C Theory の PO ″彑 Bruce Public ・れ ce and the 員襯た 2 れ ECO れ 0 ~ れ Byrns/Sto e ECO れ 0 ・ CS Carlton/P rloff 0 施 m れイ″ / 記 0 2 れたロれ Caves/FrankeI/Jones ん e ロ ~ / 0 ECO れ 0 〃 CS ″ 0 れ / ECO れ 0 〃 2 / CS 砿 e ECO れ 0 襯 / 立 ollison んわ orEco れ 0 〃 CS Smith cracu 0 ~ れた Theoru ECO れ 0 〃れ CS 励 eo 〃〃″ ca 朝れ , an PO ″ c. 彑 例 / Eco れ om / . ・ 施れイ彑襯 e れな Gordon Ghiara m Gerber Fusfeld ECO れ 0 Ekelun Mo Ehrenber ofDe 襯 員れ Eco DO 、 ん盟れ Cooter/Ul E れど / ro Chap man Essent ロな砿 Eco れ 0 襯 / Gregory ー CO れ 0 〃 CS Gregory/Stuart R ″ SS / れれ d SO リ一 ECO れ 0 ~ れた P 催ん ~ 初れ ce れ S わ c ル HartwicWOIewiIer The Eco れ om 沁砿Ⅳル ral Resource 僑 2 Hubbard 0 れ e. 彑 , the F ⅲ 2 れ ci 記 S. 襯 , and the ECO れ 0 襯彑 Hughes/Cain 員襯たれ ECO れ 0 襯た〃なね Husted/Melvin 加 m れ ECO れ 0 襯た s JehIe/Reny 員 d れ ce イノ / croeco れ 0 〃れ C Theor1J KIein M ん 2 襯た記 Me 0 for ECO れ 0 ~ れ ~ CS Krugman/Obstfeld 加″ 0 れ記 ECO れ 0 襯た s Laidler The De 襯れイん rMO れ Leeds/von AIImen The Eco れ 0 襯沁砿 S, 〃な Lipsey/Courant/Ragan EconomlCS Melvin 加われ記 MO れ e. 彑れ d 尹加ロれ ce Miller ECO れ 0 襯た s TO 面彑 Miller れ d ⅲ 0 MO 施 ECO れ 0 〃 CS MiIIer/Benjamin/North The Eco れ 0 襯 / 砿ル″ c lssues Miller/Benjamin 2 Eco れ 0 襯 / ofMacro な Mills/Hamilton Ur わロれ ECO れ 0 〃 CS Mishkin The Eco れ 0 襯た s ofMO れ , Ba れれ切 dF れ ci 記 M ん e な Parkin EconomlCS Perloff MicroeconomlCS Phelps 〃 e 記 Eco れ 0 襯沁 Riddell/ShackeIford/Stamos/ Schneider Eco れ 0 襯 ~ : TOOI for 併″たロ U れれ市れ 0 SOC Ritter/Silber/UdeII PrincipIes 砿 0 れ , Ba れん加切 an イ F 加れ ci 記 M な Rohlf 加〃 0 イリ c ″ 0 れん ECO れ 0 襯に Re 0 がれ 0 Ruffin/Gregory 怦加が砿 ECO れ 0 襯 / Sargent R われ記 E ズ〃 ec ″ 0 加″ 0 れ Scherer Schotter Microecono,t721CS StocWWatson 加 0 イ″ c ″ 0 れね ECO れ 0 襯 cs Studenmund 豆れ 0 ECO れ 0 襯 cs Tietenberg E れ i•o れ襯 2 記 d Ⅳ 4 ル ra / Resource ECO れ 0 〃れ CS Tietenberg E れ 0 れ〃 ~ e れ一 IECO れ 0 〃 CS イ PO ″ c 彑 Todaro/Smith ECO れ 0 襯た De あ〃 men ー Waldman/Jensen / れイ / 0 れたわ Theory andPractice Weil Eco れ om た Growth Williamson ノロ croeco 〃 0 〃れ CS

市″ 0 れ記 Re ル r 例 c 115 Kelley, AlIen C. "Economic Consequences of population Change in the Third world," 面″ rn 記 ofEco- れ 0 襯 / c ん″ era ル 26 (December 1988 ) : 1685 ー 728. Excellent review of a complex literature. lncludes a detailed bibliogr 叩 hy. Kelley, AIIen C. , and Robert M. Schmidt. P 叩記われ and 加 co 襯 e 朝れ ge : c 例ー Evidence (Washing- ton, DC: World Bank, 1994 ). An excellent review of the theory and evidence underlying the rela- tionship between population growth and economic development that is complemented by some original empirical studies that reveal distinct new emerging patterns. Schultz, T. PauI. Economics 砿 P 叩″れ (Reading,MA: Addison-Wesley, 1981 ). lntended for undergrad- uates, an intensive introduction tO the field. Gives a sense of the controversies existing in the field. Simon, JuIian L. Po 〃記われれ dD 2 あ〃襯行れ Poor Co ″れ否 . ・立 c イ Es (Princeton, NJ: prince- ton University Press, 1992 ). A collection of essays from the primary pr 叩 onent of the idea that mod- erate ()s opposed tO zero or high) population growth may be helpful to developing countries. ADDITIONAL REFERENCES Becker, Gary. "An Economic Analysis of Fertility," in De 襯 00r 叩ん c れ d Eco れ 0 襯た C, んれ加 D ツ - 叩 e CO 盟〃た s (Princeton, NJ: Princeton University press, 1960 ) : 209 ー 31. Caldwell, John C. "Fertility in Africa," in ″″ Decline 加 the ん e D e あイ Co ″れ〃 s , Nick Eber- stadt, ed. (New York: Praeger, 1981 ) : 97 ー 118. Commission on P 叩 ulation Growth and the American Future, R ea 尾ん R 印な , vols. I—VII, Elliot R. Morss and Richie H. Reed, eds. (Washington, DC: Government Printing Office, 1972 ). Davis, Kingsley, et. al. , 召 elo R ce 襯ー″″加〃 / 記 Soc ″ . ・ Ca , Co れ 4 ″ e れ c , po ″ - c 5 (New York: Cambridge University Press, 1987 ). Easterlin, Richard A. P 叩記朝れ , ん F 化れん 0 れ S 盟加の加 Eco れ 0 襯た G 盟 (New York: C01umbia University Press, 1968 ). Easterlin, Richard A. "The Economics and Sociology of Fertility: A Synthesis," in た記 S ル市砿 C んれグれ R ″″ , Charles Tilly, ed. (Princeton, NJ: Princeton University Press, 1978 ) : 57 ー 133. EasterIin, Richard A. , ed. 戸 0 〃″″ 0 れ 2 れイ Eco れ 0 た C ん 2 れ ge 加のツ叩加 Co ″れケ s (Chicago: Univer- sity of Chicago Press, 1980 ). Eberstadt, Nick. ″″ Decline 加 the ん e Developed Co ″れ s (New York: Praeger, 1981 ). Espenshade, Thomas J. 豆加 0 加 C ん″市例 . ・ New Es ″襯砿 R e れ I E. ゆ e れ市ル s (Washington, DC: Urban lnstitute Press, 1984 ). Goldberg, David. "Residential Location and FertiIity, ' ⅲ P 叩記われイ D 卲叩 m 例た The 立 ch for Selective e れれ , RonaId Ridker, ed. (BaItimore, MD: Johns H 叩 kins University Press, 1976 ) : 387728. Hardee-Cleaveland, Karen, and Judith Banister, "Fertility PoIicy and lmplementation in China, 1986 ー 88 , " Po 〃記われ dD 叩襯 e た 14 (June 1988 ) : 245 ー 286. J0hnson, D. Gale, and Ronald D. Lee. PO 〃″″ 0 れ Growth Eco れ 0 襯た D 卲叩襯 e れたなイ Evi- den 化 (Madison: University 0f Wisconsin Press, 1987 ). Kuznets, Simon. P 叩″な″ 0 れ , C 叩″記 , Gro 盟 . ・立 cte E (New York: W. W. Norton, 1973 ). Lapham, R0bert J. , and W. Parker Mauldin, "Contraceptive Prevalence: The lnfluence of Organized Fam- ily Programs," S ル否加 Fa 襯 P れれ加 16 ( 1985 ).

Efficiencu れイ CO - Efi 尼 c ″れお 5 353 ANATOMY 0F AN OIL SPILL SUIT: THEAMOCO 朝ル On 17 March 1978 , the 襯 0C0 Ca 市 2 , an 0i1 transport ship traveling in a bad storm, lost steering control and, after unsuccessful towing attempts, drifted onto the rocks off the shore of Portsall, France, on the Brittany coast. UItimateIy, the ship broke in two and discharged 220 , 000 tons of crude 0 ⅱ and 4 , 000 tons Of bunker fuels along the cost of a resort area, 0 months prior to the opening Of the tourist season. Before the end of the year of the grounding, a mountain of claims had been filed involving France, a consortium Of resort owners and fishermen, Am0CO (the owner of the vessel), Bugsier (the owner 0f the tug), Shell OiI (the owner of the oil being carried at the time), and Astilleros Espafioles (the Spanish company that built the 襯 0C0 Ca イた ). After extensive and expensive preparations by all parties, the trial began in May 1982. During March 1984 a preliminary 叩 inion was issued finding Amoco and the shipbuilder jointly liable. The process then turned to the separate issue of the magnitude of the damages to be awarded. On 21 February 1989 , a judgment of 670 million francs (approximately $ 120 mil- lion) was levied against Amoco and Astilleros. The verdict was immediately appealed. The trial judge, now retired from the bench, summed up the situation: SO カ e we 尾 , twelve e ″ the acc れ 4 ツ卲 e れ ye ″ the 5 ″″〃必″ん the がれたアな加〃 0 e われ砿れ例襯 0 0 襯例ーれイ s ″り e けね e れ or 襯 0 / 記 fees 盟″ん 0 0 れ e ce れ / ん 2 れ ch れ ge イん . 2 case 襯 ch 0 れ盟砿ん the Co of 員〃〃な 面 each 〃 r 加 c ゆ記〃 expected ん叩〃 e 記 those 〃 ec な砿 the 〃れ記 me 面 盟ん c ん市 ee. な raises the 〃 os 豆わ市 , 記襯 0 ″川切加 , わ配 the ん 0 case co ″ん e ね be 〃 d れ . Source: Frank J. McGarr, "lnadequacy of Federal Forum for Resolution of 0 ⅱ Spill Damages," a talk given at a conference on 0 ⅱ spills at Newport, Rh0de lsland, on 16 May 1990. Judge McGarr was the trial judge for theAmoco C 市 2 case. citizen suits would have no ro 厄 tO play. Noncompliance iS a necessary condition for a success- ful suit. ln the early 1980S when public enforcement decreased, private enforcement—citizen suits—increased tO take up the slack. Lax public enforcement appears t0 have played a signif- icant role in the rise Of citizen suits. AII attorneys' fees incurred by the citizen group in any successful action under the Clean Water Act must be reimbursed by the defendants. Reimbursement of attorneys' fees has affected both the level and focus 0f litigation activity. ByIowering the costs 0f bringing citizen suits, attorney fee reimbursement has allowed citizen groups tO participate far more Often in the enforcement process than otherwise would have been possible. Because courts only reim- burse for appropriate claims (noncompliance claims that are upheld by the court), citizen groups are encouraged tO litigate only appropriate cases.

D な c 豆 0 れ Q ″″ 0 173 Frederick, Kenneth D. , and AlIen V. Kneese. ℃ ompetition for Water," in Ⅳ Scarcity, Ernest A. Engelbert with Ann FoIey Scheuring, eds. (BerkeIey: University of California Press, 1984 ). Griffin, RonaId C. , and Shih-Hsun Hsu, "The Potential for Water Market Efficiency When lnstream Flows Have VaIue," 襯たれ Jo ″ m 記砿 / c ″〃記 Economics 75 (May 1993 ) : 292 ー 303. Howe, CharIes W. "Project Benefits and Costs from National and Regional Viewpoints: Methodological lssues and Case Study 0f the C010rad0—Big Thompson Project," ル記 Resources JO ″ m 記 26 (Winter 1986 ). Kanazawa, M. "Pricing Subsidies and Economic Efficiency: The Bureau of RecIamation, ' 面″記砿ん Eco れ 0 襯沁 36 ( 1993 ) : 205 ー 34. Livingston, Marie L. , and Thomas A. Miller. "The lmpact of lnstream Water Rights on Ch0ice Domains,' んイ Eco れ 0 襯た s 62 (August 1986 ) : 269 ー 77. Organization for Economic C0-operation and Development. Re れ e わ Natural Resources. ・ Economzc 加 ce れ″ s ん r / 襯〃 ro イ Ma れ 20e 襯例日 Paris : OECD, 1987 ). PosteI, Sandra. "Saving Water for Agriculture," in S 砿 the Ⅳ雇・ 7990 , Lester Brown et al. (New York: W. W. Norton, 1990 ). Rubin, Kenneth. E 市 c 襯 e れな加Ⅲ R 0 レ尾 es : なれ d 0 〃″ 0 れ s (Washington, DC: Con- gressional Budget Office, 1983 ). Smith, Vernon L. "Water Deeds: A Proposed Solution to the Water Valuation Problem," r た 0 れ R 卲盟 26 (January 1977 ) : 7 ー 10. SaIiba, Bonnie. "Do Water Markets 'Work'? Market Transfers and Trade-offs in the Southwestern States, Ⅳ R 0 c Research 23 (JuIy 1987 ). Steinbeck, J0hn. The Grapes 砿Ⅲ (New York: Viking Press, 1939 ). ToreII, L. AIIen, James D. Libbin, and Michael D. Miller. "The Market Value ofWater in the OgaIIaIa Aquifer," んロれ d Economics 66 (May 1990 ) : 163 ー 75. WahI, Richard W. M 砿な for Federal Ⅲ催 . ・ S 励豆市 , Property んな , and the 召″砿 Rec 襯 ″ 0 れ (Washington, DC: Resources for the Future, 1989 ). Zamikau, J. "Spot Market Pricing of Water Resources and Efficient Means of Rationing Water During Scarcity," Resources dE れ邵 0 16 (August 1994 ) : 189 ー 210. DISCUSSION QUESTIONS 1. What pricing system identified in Table 9.1 best describes the pricing system used tO price the water you use at your college or university? Does this pricing system affect your behavior about water use (length Of showers, etc. )? HOW? Could you recommend a better pricing system in this cir- cumstance? What would it be? 2 熱 at system is used in your home town tO price the publicly supplied water? Why was that pric- ing system chosen? 3. SUPPOSe you come from a part 0f the world that is blessed with abundant water. Demand never comes close t0 the available amount. Should you be careful about the amount you use, or should you simply use whatever you want whenever you want it? WhY?

154 劭叩 / 催 8 刃れ催 Lind, Robert C. , et al. D な co ″れ″れ for 行襯 e ロれ R なん加 E れ 0 Po ″ c (Washington, DC: Resources for the Future, 1982 ). MitcheII, Bridger M. Willard G. Manning, Jr. , and Jan Paul Acton, Pea ん - ん oadP c 加 European ん e 0 れ s for し & E. ゅれ ce (Cambridge, MA: BaIIinger, 1978 ). MitcheII, Robert Cameron, and Richard T. Carson, "Property Rights, Protest, and the Siting of Haz- ardous Waste Facilities, ”員襯 e c れ Eco れ 0 襯た R 盟 76 (May 1986 ) : 285 ー 90. Moreira, J. R. , and J. GoIdemberg. "The AIcohol Program," Energ1J Po ″ cy , VoI. 27 , No. 4 ( 1999 ) : 229-245. Myers, N. , and J. Kent, Perverse S ″房 / 市 : 〃 0 肥ズ Do ″ s Ca れ U れ施尾 the E れ ro れ襯 e れ the Eco れ 0 襯 (Washington, D. C. : lsland Press, 2001 ). Nichols, A. L. , and R. J. Zeckhauser. "Stockpiling Strategies and Cartel Prices," 召 e ″面″ m 記砿 Eco れ 0 襯 - ics 7 (Spring 1976 ) : 66 ー 96. OIiver, M. , and T. Jackson. "The Market for Solar Photovoltaics," Energy Po ″ cy , Vol. 27 , No. 7 ( 1999 ) : 371 ー 385. SaIant, S. W. , "Exhaustible Resources and lndustrial Structure: A Nash-Cournot Approach to the World OiI Market," Jo ″記砿 Pol 市 c 記 Eco れ 0 襯 84 ( 1976 ) : 1079 ー 93. Teisberg, Thomas, "A Dynamic Programming Model of the U. S. Strategic Petroleum Reserve, ” Be 〃面リた れ砿 Eco れ 0 襯 / cs 12 (autumn 1981 ) : 52676. Toman, MichaeI, and MoIIy K. MacauIey. 'Risk Aversion and the lnsurance Value of Strategic 0 ⅱ Stock- piling," Resources dE れ e 8 ( 1986 ) : 151 ー 65. U. S. Agency for lnternational Devel 叩 ment (AID). DecentraIized 〃市叩 0 加盥 D D el 叩襯例 / ホ s なれ化怦 00m 襯 (Washington, DC: AID, 1986 ). West, RonaId E. , and Frank Kreith. Eco れ 0 襯たれ口 s な砿 Sol er 襯記 E れ S 襯 s (Cambridge, MA: MIT Press, 1988 ). DISCUSSION QUESTIONS 1. ShouId benefit-cost analysis play the dominant role ⅲ deciding the proportion of U. S. electrical energy tO be supplied by nuclear power? Why or why not? 2. One economist (Lerner [ 1980D proposed that the United States impose a tariff on oil imports equal to 100 percent of the import price. This tariff is designed to reduce dependence on foreign sources as well as t0 discourage OPEC from raising prices (because, as a result of the tariff, the delivered price would rise twice as much as the OPEC increase, causing a large subsequent reduction in con- sumption). Should this become public policy? Why or why not?

D な〃われ砿 0 イ Reso c 185 Poverty, p 叩 ulation growth, and the sufficiency of food production are related problems, as we stated in the chapter on population growth. High poverty levels are generally conducive tO high p 叩 ulation growth, and high population growth rates may increase the degree 0f income inequality. Furthermore, excessive population levels and poverty together increase the difficulty Of achieving fOOd sufficiency. Because we have already examined population con- trol strategies in Ch 叩 ter 6 , we shall now focus on strategies to increase the amount Of f00d available tO the poorest people. What can be done? Domestic odu ( on ⅲ LDCs The first issue tO be addressed concerns the relative merits Of increasing domestic production in the less developed countries asopposed tO importing more from abroadÄhere are several reasons for believing that many developing countries can profitably increase the percentage Of their consumption that is domestically produced. One Of the most important is that f00d imports use up precious foreign exchange. MOSt developing countries cannot pay for imports with their own currencies. They must pay in an internationally accepted curren , such as the U. S. dollar, earned through the sale Of exports. more orelgn exchange is used for agricultural imports, less is available for imports such as capital goods, which could raise the productivity (and, hence, incomes) 0f 10Ca1 workers. The lack of foreign exchange has been exacerbated during periods of high 0i1 prices. Many developing nations must spend large portions 0f export earnings merely tO import energy. ln 1993 , for example, fuel imports made up one third of all imports for Kenya. That leaves little for c 叩 ital goods or agricultural imports. Although this pressure on foreign exchange supports a need for greater reliance on domes- tic agricultural production, it would be incorrect tO carry that argument tO its logical extreme by suggesting that all nations should become self-sufficient in f00d production. The reason why self-sufficiency is not always efficient is suggested by the の一の尸朝襯〃″市れ ge. Nations are better Off specializing in those products for which they have a comparaåve advantage. If its comparative advantage is not in f00d but in textiles, for example, a given coun- try would be better 0ff producing and exporting textiles, and using the earnings t0 purchase food (TabIe 10.2 ). The opportunity costs 0f producing textiles and wheat (measured in hours 0f labor per unit 0f output) are given for a hypothetical LDC and a devel 叩 ed country (DC). SUPPOSe we are considering an eight-hour day in each country. If the average worker in each country were tO spend four hours Of each day on each activity, then 8 units Of textile ( 4 by the LDC and 4 by the (C) and 51 / 3 units of wheat ( 11 / 3 bY the LDC and 4 bY the DC) would be produced by the 朝 0 countries each day. ()e sure you can see hOW these numbers can be derived from the table). SUPPOSe, however, that the LDC in this case were tO specialize in textiles ()Y allocating all eight hours tO textile production), whereas the DC specialized in wheat. lt is easy t0 verify that TABLE 10.2 A HypotheticaI Example Of the Law Of Comparative Advantage Less Devel 叩 ed Country Developed Country 〃 0 ″ね怦 0 血 ce 7 U れ″砿既 1 1 〃 0 ″ toProduce 7 U れ″砿 e 3 1

P ce XXiii Desalinization as a backstop technology Using royalty payments t0 protect biodiversity Prot0type Carbon Fund of WorId Bank Economic cost Of Kyot0 ProtocoI Tax breaks for SUVs Subsidies on raw materials Expanded producer responsibility lmpact fees Sweden's nitrogen oxide charge Safety valves and the RECLAIM experience with electrical deregulation Some completely new data and artwork have been added. The book's Companion Web site, W、、明 .aw.com/tietenberg, features new ch 叩 ter-specific "Web Sites of lnterest," complementing the text material. An updated 加川 c ね r Ma れ″記 , re- flective of changes to the fourth edition, is available online for instructors' reference. This edition retains a strong policy orientation. Though a great deal of theory and empir- ical evidence iS discussed, their inclusion iS motivated by the desire tO increase understanding Of intriguing policy problems, and these aspects are discussed in the context of those prob- lems. This explicit integration of research and policy within each ch 叩 ter avoids the problem frequently encountered in applied economics textbooks—that is, in such texts the theory de- veloped in earlier chapters is often only loosely connected to the rest of the book. The many insights gleaned from other disciplines have an important role to play in overcoming the typ- ical textbook's tendency tO accept the material uncritically at a superficiallevel; instead, this text highlights those characteristics that make the economics approach unique. ◆ ACKNOWLEDGMENTS Perh 叩 s the most rewarding part of writing this book has been that it has put me in touch with so many thoughtful people I had not previously met. I very much 叩 preciate the faculty and stu- dents whO pointed out areas Of particular strength or areas where coverage could be expanded in this edition. The support this book has received from faculty and students has been gratifying and energizing. One can begin t0 understand the magnitude 0f my debt t0 my colleagues by glancing at the several hundred names in the lists Of references contained in the name index. Because their research contributions make this an exciting field, full 0f insights worthy 0f being shared, my task was easier and a 10t more fun than it might othemise have been. VaIuable assistance was received during various stages Of the writing from the following people: Dan S. Alexio Gregory S. Amacher M i chael Bal ch Maurice Ballabon Edward Barbier A. Paul Baroutsis Kathleen P. Bell U. S. Military Academy at West Point Virginia Polytechnic lnstitute and State University University 0f lowa Baruch COIIege University 0f Wyoming SIippery Rock University 0f PennsyIvania University Of Maine

460 劭叩 r 幻 The Q for S 加 D el 叩襯例ー Howarth, Richard B. , and Richard B. Norgard. "lntergenerational Resource RightS"' んれ dEC0 れ 0 襯た s 66 (February 1990 ) : 1 ー 11. McNeeIey, Jeffrey A. , et al. "Strategies for Conserving Bi0diversitY," E れ ro れ e 32 (April 1990 ) : 16 ー 20 , 3640. parris, T. M. ℃ omparative lnternational lndicators 0f Sustainable Development," E れ ro れ襯ー 38 , NO. 4 ( 1996 ) : 3. pearce, David, et al. "Measuring Sustainable Devel 叩 ment: Progress on lndicators"' E れ ro れ襯例ね I れ d D 叩襯ー Eco れ om / cs 1 , NO. 1 ( 1996 ) : 85 ー 102. pezzey, JOhn. "Sustainable Development Concepts: An Economic Analysis," working P 叩 er. Washingt011' DC: World Bank Environment Department, 1992 ). Redclift, Michael. S 加 le De I 叩襯 e れた E ゆ I 加 the CO ra 市 c 朝れ s (New York: Methuem 1987 ). Toman, Michael A. "Economics and 'SustainabilitY': Balancing Trade-0ffs and lmperatives" んれ d ECO- れ 0 襯 / cs 70 ( 1994 ) : 399713. Turner, R. Kerry. S ね加 E れ ro れ襯例 I Ma れ ge 襯例た Principles ロれイ Practice (Boulder, CO: Westview Press, 1988 ). Van den Bergh, J. C. J. M. , and M. W. H0fkes. "Economic M0dels 0f Sustainable Devel 叩 ment," in J. C. J. M. Van den Bergh, ed. 〃れ 00 ん砿 E れ ro れ襯例 1 れ d Resource Ec 伽 0 襯た s (Cheltenham, UK: Edward Elgar): 1108 ー 1122. world Resources lnstitute. Ⅳロル I E れ襯例な : F ⅲれ c 加 4 R 0 レ尾 e CO e 耀われん鑽 De あ〃襯 e れ一 (Washington, DC: World Resources lnstitute, 1989 ). DISCUSSION QUESTIONS 1. Discuss the mechanism favored by Daly tO control population growth. What are its advantages and disadvantages? Would it be appropriate tO implement this policy now in the United States? For those who believe that it would be, what are the crucial reasons? For those whO believe it is not 叩 propriate, are there any circumstances in any countries where it might be appropriate? Why or why not? 2. "Every molecule Of a nonrenewable resource used t0day precludes its use by future generations. Therefore, the only morally defensible policy for any generation is tO use only renewable resources. ” Discuss. 3. generations can cast neither VOtes in current elections nor d()llars in current market deci- sions. Therefore, it should not come as a surprise tO anyone that the interests Of future generations are ignored in a market economy. ' Discuss.

172 劭叩 / 催 9 Ⅳ FURTHER READING Anderson, Terry L. Ⅲ Cr なな . ・ E れ市れ the PO ″ cy Dro ″ 0 を (Washington, DC: Cat0 lnstitute, 1983 ). A provocative survey Of the political economy 0f water, concluding that we have tO rely more on the market tO SOlve the criSlS. Dinar, Ariel, and David Zilberman, eds. The Eco れ 0 襯た s and Ma れ ge 襯 e 砿Ⅲれ d Drainage 加 員 0 c ″〃″ (Norwell, 犱 : Kluwer Academic Publishers, 1991 ). Examines the special issues associ- ated with water use in agriculture. Easter, K. William et. al. M なんⅢ催 . ・ P e れ″記れ P ん r 襯れ ce (Dordrecht: Kluwer Academic PubIishers, 1998 ). Gibbons, Diana. The Eco れ 0 襯た e 砿Ⅲ催 (Washington, DC: Resources for the Future, 1986 ). A detailed survey and synthesis Of existing studies on the economic value Of water in various uses. Harrington, Paul. P c 加 0 砿 Water Se 耀た (Organization for Economic C0-operation and Develop- ment, 1987 ). An excellent survey Of the water-pricing practices in OECD countries. MacDonneII, L. J. and D. J. Guy, "Approaches t0 Groundwater Protection in the Western United States, ” Ⅳ 0 ″尾 es Research 27 ( 1991 ) : 259 ー 65. Discusses groundwater protection in practice. Martin, William E. , Helen M. lngram, Nancy K. Laney, and Adrian H. Griffin. S 加 Water 加 2 Desert 夜 (Washington, DC: Resources for the Future, 1984 ). A detailed look at the political and eco- nomic ramifications Of an attempt by Tucson, Arizona, tO improve the pricing Of its diminishing supply Of water. Saliba, Bonnie Colby, and David B. Bush. Ⅳ催 M んな加 eo れ怦 ac ″ ce. ・ M ん Tra 尼れ d P ″わ″ c Po ″ cy (BouIder, CO: Westview Press, 1987 ) : 74 ー 77. A highly recommended, accessible study Of the way western water markets work in practice in the United States. Spulber, Nich01as, and Asghar Sabbaghi, Eco れ 0 襯 / cs 砿Ⅳ催 Resources: h0 襯 R ″″ 0 れね片かた 2 ー れ (Hingham, MA: Kluwer Academic Publishers, 1993 ). Detailed analysis of the incentives struc- tures created by alternative-water-management régimes. ADDITIONAL REFERENCES Anderson, Terry L. , ed. Ⅲ R んな . ・ Scarce Resource ″ oc われ , B ″ロ″ c c. 切イ the E れ h0 れ襯 e (Cambridge,MA: Ballinger, 1983 ). Collinge, R0bert A. "Revenue NeutraI Water Conservation: MarginaI Cost Pricing with Discount Coupons," Ⅳ R 0 c Research 28 (March 1992 ) : 617 ー 22. Cust0di0, E. , and A. Gurgui, eds. G ″れ Eco れ 0 襯 / cs. ・ SeIectedPapers 0 襯 U れ″ e イⅣわ Sy 襯ー 〃襯〃 e 加 B ce あれれ (New York: Elsevier, 1989 ). Easter, K. WiIIiam, et. al., ん e な for Ⅳ er. ・ P e れ″記 & P 催ん r 襯れ ce (Dordrecht: Kluwer Academic PubIishers 1998 ). Frederick, K. D. "Water SuppIies," in Current lssues 加Ⅳル川 I Resource Po ″ cy , paul R. portney, ed. (Washington, DC: Resources for the Future, 1982 ) : 216 ー 52. Frederick, K. D. Scarce Ⅳ邵 d / ″ル″ 0 れ記 C んれ ge (Washington, DC: Resources for the Future, 1986 ). Frederick, Kenneth. "Water Resource Management and the Environment: The Role of Economic lncen- tives," in RenewabIe ルル I Reso ″尾 . ・ Eco れ 0 襯た加 c 例″ s for lmproved れ 20e 襯 e れ一 (Paris: ()rganization for Economic Co-operation and Devel 叩 ment, 1989 ).

150 劭叩 / 催 8 E れ催硼 their commercial energy needs. 10 A transition away from fossil fuels tO other energy forms in both the industrialized and the third-world nations would be an important ingredient in any strategy tO reduce carbon diOXide emissions. Can our institutions manage that transition in a timely and effective manner? Renewable energy comes in many different forms. Hydro power can be derived from flow- ing water; biomass can be burned; solar energy can used tO produce heat used tO drive steam turbines or converted directly into electricity by means of photovoltaics; wind energy can drive turbines; hydrogen extracted from the air by solar energy can fuel cars or furnaces; and geothermal energy can be captured from the bowels of the earth and put to useful work. The extent to which these sources will penetrate the market will depend upon their rela- tive COSt and consumer acceptance. Relative COSt Will no doubt change time as research uncovers better ways tO harness the power Of renewable sources. Perhaps the best example of hOW research can lower costs is provided by the experience with photovoltaics. P ん 0 ん 0 〃 cs involves the direct conversion of solar energy to electricity ()s opposed to indirect conversions such as When steam energy iS used tO drive a turbine). Anticipating a huge potential market, private industry has been very interested in photovoltaics and has poured a 10t Of research dollars intO improving its commercial viability. The research has paid off. ln 1976 , the average market price for a photovoltaic module was $ 44 per peak watt installed, and 0.5 megawatts were sold. By 1997 this had fallen to $ 4.06 per peak watt. 11 Rural electrification projects using photovoltaics are slowly spreading into the third world. Windpower is also beginning to penetrate the market on a rather large scale. New turbine technology has reduced the cost and increased the reliability of wind-generated electricity to the point that it now can compete with conventional sources in favorable sites—even when environmental costs have not been internalized. (Favorable sites are those with sufficiently steady, strong winds). AIthough many unexploited favorable sites still exist around the world, the share of windpower in the total energy mix will ultimately be limited by the diminishing availability Of those sites. One fuel that is currently receiving intense interest for the long run is hydrogen. (lce- land, for example, has announced its intention to become a hydrogen-fueled economy. ) AIthough hydrogen is the most plentiful element in the universe, it is normally combined with Other elements. Water, for example, combines 朝 0 atoms of hydrogen with one of oxygen (H20). Hydrogen is also found in the "hydrocarbons" that make up many of the fossil fuels, such as gasoline, natural gas, methanol, and propane. "Reformed" hydrogen can be made by separating it from hydrocarbons by the use of heat. Currently, most hydrogen is made this way from natural gas. AlternativeIy, it can be produced from water. If an electric current (produced by photovoltaics, for example) is conducted through a reservoir of water, the liquid splits into its constituent elements, hydrogen and 0 - gen. NASA has used liquid hydrogen since the 1970S to pr 叩 el the space shuttle and other rockets into orbit. ln addition to being directly combusted, hydrogen can be used in fuel cells. Fuel cells offer a promising technology for use as a source of heat and electricity for buildings and as an 10U. S. Agency for lnternational Devel 叩 ment (AID), l)ecentralized 〃 4 市叩 0 加盥 D De 怩ん〃襯 e な〃 ce Program (Washington, DC: AID, 1986 ). llhttp://www.eia.doe.gov/cneaf/solar.renewables/rea_data/html/ch 叩 ter2. html#l (accessed at 1 / 20 / 00 ).