Index

Abatements

free-market environmentalism, 109–12, 122–23

Kyoto Protocol (1997), 182–83

real-world environmental policy, 128–29, 153n2

Absentee ownership, 84–85

Aggregate output, 78

Agricultural preserves, 137, 138–39

Albert, M., 87

American Power Act, 152

An Inquiry into the Nature and Causes of the Wealth of Nations (Smith), 3–4, 54–55

Apollo Alliance, 99

Arctic National Wildlife Refuge (ANWR), 25

Arrhenius, Svante, 159

Arsenic standards, 18

Australia, 162, 163

Automobile industry, 58, 59f

Bias

contingent valuation (CV) surveys, 26–27

endogenous preferences model, 87–91

Black swans, 31–32, 33n8

Boyce, J., 239

British Petroleum (BP), 39, 232

Brundtland Commission. See United Nations World Commission on Environment and Development

Bull in the China closet economy, 76, 100n1

Bush, George H.W., 96

Bush, George W., 163, 176–77

Callendar, Guy Stewart, 159

Canada, 44, 162, 199

Capitalism, 79–81, 85, 101n6

Capital stock, 38, 42–44

Carbon cap-and-trade programs

auctioned permits, 131, 132, 135, 146–48

efficiency criterion, 181–83

equity criterion, 183–84

equivalent emissions, 185–86

false trading, 145–47

financial crises, 145–46, 148–51

global emission caps, 196–97

grandfather system, 131

limitations of, 184–90

loopholes, 186–88

mandatory caps, 164–66, 175–76, 183–84

merits of, 181–84

net carbon emissions, 199–201

paternalism, 188

real-world environmental policy, 130–32, 144–49, 153n1

speculation, 146–49

supply and demand, 148, 154n19

treaty conditions, 162, 166–72

versus international carbon tax, 204–7

Carbon cycle, 186

Carbon dioxide emissions

climate change, 68–69, 79

cost-benefit analysis (CBA), 21–24

See also Greenhouse gas (GHG) emissions

Carbon Limits and Energy for America’s Renewal (CLEAR) Act, 135, 152

Carbon sequestration

climate change, 68–69

climate treaty guidelines, 199–201

Carbon tax, 129–30, 153n1, 204–7

Cardinal theory of utility, 14–15

Certified emissions reductions (CERs)

climate treaty guidelines, 196–97, 199–203

Kyoto Protocol (1997), 166–72, 180–81, 184, 185, 188

Ceteris paribus, 93, 94

China, 163, 191, 198, 208

Civil rights, 18

Clean Air Act (1990), 24, 96, 97, 129

Clean Development Mechanism (CDM), 162, 165, 170–72, 178, 180, 185, 189, 190, 199–201, 203

Clean Water Act, 129

Climate change

carbon dioxide emissions, 68–69, 79

carbon sequestration, 68–69

deforestation, 68–69

greenhouse gas (GHG) emissions, 68–69, 79

mainstream economic theory, 68–69

Climate policy reform

adequacy of, 232–33

community-based economics (CBE), 234–36, 242n4

environmental benefit-revealing

mechanism, 237–39, 242n5

financial planning, 239–41

green consumerism, 233

Green New Deal, 230–31, 241n2

institutional versus technical reform, 233–34

iteration facilitation board (IFB), 237–39

in my back yard (IMBY) principle, 234–36

not in my back yard (NIMBY) principle, 230, 235–36

participatory economy, 237–39, 242n8

participatory planning procedure, 237–39, 242n7

political strategy, 229–32

Climate treaty exercise, 165–66, 187, 215–27

scenarios, 216–27

efficiency criterion, 217, 219, 221, 223, 226–27

equity criterion, 217, 219, 221, 223–25, 227

Climate treaty guidelines

carbon sequestration, 199–201

certified emissions reductions (CERs), 196–97, 199–203

deforestation, 200–1, 214n4

environmental justice activism

bogus carbon trading, 211–12

economic systems, 212–13

mass action, 210–11

equity criterion, 197–99

free-rider problem, 212–13

global emission caps, 196–97

Greenhouse Development Rights Framework, 191, 197–99, 206–7, 213n2

greenhouse gas (GHG) emissions, 196, 205–6

international carbon tax, 204–7

international compliance

China, 208

European Union, 207–8

United States, 208–10

international monitoring agency, 201–3

less developed countries (LDCs), 197, 202–3, 206–7, 208

mainstream economic theory, 196

more developed countries (MDCs), 196–97, 201–3, 206–10

net carbon emissions, 199–201

recommendations, 195–204

responsibility and capability criterion, 197–98, 206–7

scientific evidence, 195–96

Climate treaty negotiations

early discoveries, 159–60

effectiveness criterion, 164

efficiency criterion, 165–66

equity criterion, 164–65

free-rider problem, 163–64

historical development, 159–63

preliminary meetings, 160–61

See also Earth Summit (Rio de Janeiro, 1992); Kyoto Protocol (1997)

Clinton, Bill, 96

Club of Rome, 5, 6

Coalition of Rainforest Nations, 188

Coase theorem. See Free-market environmentalism

Collective consumption, 84

Common pool resource (CPR)

climate change, 69

community management, 142–44, 154n16

fishing industry, 64–68, 140–44

institutional analysis and development (IAD), 140, 143–44

mainstream economic theory, 53–54, 64–68, 69

marginal private cost (MPC), 67

privatization, 140–41, 154n14

real-world environmental policy, 139–44

regulation, 141–42, 154n15

tragedy of the commons, 64, 67, 139–40

Common property resource, 64

Community-based economics (CBE), 234–36, 242n4

Community management, 142–44, 154n16

Compensation, 16–17, 32n2

Competition, 84–85

Competitive consumption, 82

Composition effect, 93–94

Conference of the Parties to the Convention (COP) (Copenhagen, 2009), 161–62, 163, 178, 189, 190

Conspicuous consumption, 82–83

Consumer sovereignty, 86–87

Consumption

collective consumption, 84

competitive consumption, 82

conspicuous consumption, 82–83

ecological footprint, 84, 101n11

endogenous preferences model, 85–91

free-rider problem, 84

mainstream economic theory, 81–84, 85–91

public goods, 84

Contingent valuation (CV) surveys

bias, 26–27

cost-benefit analysis (CBA), 19–20, 25–27, 29–30

embedded bias, 27

free-rider bias, 26–27

hypothetical bias, 27

ignorance bias, 27

strategic bias, 27

willingness to accept damages (WTA) survey, 26–27, 29–30

willingness to pay (WTP) survey, 26–27, 29–30

Corrective tax, 95–96, 237, 238–39

Cost-benefit analysis (CBA)

attraction of, 11–13

black swans, 31–32, 33n8

carbon dioxide emissions, 21–24

cardinal theory of utility, 14–15

civil rights, 18

compensation, 16–17, 32n2

contingent valuation (CV) surveys, 19–20, 25–27, 29–30

economic climate models, 30–32, 33n7

economic justice, 17, 32n3

ecosystem complexity, 8–9

efficiency criterion, 12–13, 32n1

environmental preference-revealing mechanism, 28–29

environmental risk uncertainty, 30–32

greenhouse gas (GHG) emissions, 23, 30–32, 58, 59f

hedonic regression, 28

marginal changes, 12–13

marginal social benefit (MSB), 12–13, 22

marginal social cost (MSC), 12–13, 21–22

option value, 25

ordinal theory of utility, 14–15

power and wealth impact, 19–20

power-weighted decision rule, 20

quantifying environmental benefits, 24–30, 33n6

rate of time discount, 20–21, 22f

rational approach, 11, 14

social justice theory, 18

standard diagram, 12f

sulfur dioxide emissions, 24, 58

tipping points, 21–24

travel cost studies, 27–28

use value, 25

utilitarianism, 14–15, 18

value judgments, 14–16

Cuba, 44

Cyclical unemployment, 96–97

Defensive expenditures, 39

Deforestation

climate change, 68–69

climate treaty guidelines, 200–1, 214n4

Kyoto Protocol (1997), 163, 188–90, 200–1

perverse incentives, 189, 200–1

Democratic Republic of the Congo, 191, 198

Designated national authority (DNA), 203

Development zones, 138

Double counting, 36–37

Downzoning, 135–36, 137, 138, 139

Drinking water, 18

Earth Summit (Rio de Janeiro, 1992)

environmental unemployment, 96

free-rider problem, 163–64

greenhouse gas (GHG) emissions, 161

negotiations of, 161–62, 163, 165

responsibility and capability criterion, 161, 165

sustainable development, 161

Ecological economics, 76–79

Ecological footprint, 84, 101n11

Economic climate models, 30–32, 33n7

Economic conversion programs, 98, 99–100

Economic democracy, 41–42, 44–46

Economic development, 77

Economic growth

aggregate output, 78

bull in the China closet economy, 76, 100n1

capitalism, 79–81, 101n6

versus development, 77

ecological economics, 76–79

frontier economy, 76, 100n1

full-world economics, 4–6

growth imperative, 75–81

growth limits, 4–6

law of entropy, 78, 100n4

Marxism, 79–81

spaceman economy, 76, 100n1

sustainable growth, 36

throughput, 76–79, 100n3

Economic justice

cost-benefit analysis (CBA), 17, 32n3

sustainable development, 41–42, 44–46

Economic progress, 40–41, 44–46

Ecosystems

complexity of, 8–9

tipping points, 8

Effective demand, 60–61

Effectiveness criterion

climate treaty negotiations, 164

sustainable development, 40–41, 44–45

Efficiency criterion

climate treaty exercise, 216–27

cost-benefit analysis (CBA), 12–13, 32n1

energy consumption, 97, 102n21

free-market environmentalism, 109–114, 122

Kyoto Protocol (1997), 165–66, 181–83, 190

Effluent tax, 95

Embedded bias, 27

Empty-world economics

consumption, 82

externalities, 7

mainstream economic theory, 3–4, 5–6

sustainable development, 41

Endogenous preferences model

bias, 87–91

consumer sovereignty, 86–87

hedonic calculus, 87

mainstream economic theory, 85–91

preference development effect, 88, 90

preference fulfillment effect, 88, 90

snowballing inefficiency theorem, 89–90

substitution effect, 87

warped human development theorem, 90–91

Energy consumption, 97, 102n21

Enforcement

Kyoto Protocol (1997), 192

real-world environmental policy, 132–33

Entropy, 78, 100n4

Environmental benefit-revealing mechanism, 237–39, 242n5

Environmental justice activism, 210–13

Environmental Kuznets curve, 91–94

ceteris paribus, 93, 94

composition effect, 93–94

scale effect, 93

technology effect, 93–94

Environmental preference-revealing mechanism, 28–29

Environmental Protection Agency (EPA), 18

Environmental sustainability, 42–44, 46, 48n6, 49n9

Equity criterion

climate treaty exercise, 216–27

climate treaty guidelines, 197–99

climate treaty negotiations, 164–65

intergenerational equity, 41–42

intragenerational equity, 41

Kyoto Protocol (1997), 164–65, 183–84, 191

European Union, 162, 163, 197, 207–8

Evolutionary economics, 87

Exchange value, 80

Exogenous preferences model, 87

Externalities

automobile industry, 58, 59f

defined, 6

empty-world economics, 7

free-market environmentalism, 107–8

full-world economics, 6–7

invisible hand theory, 6–7, 9n1, 54–55

mainstream economic theory, 53–59

negative externality, 7, 58, 68, 95

positive externality, 68–69, 95

Exxon Valdez, 39

Financial crises, 145–46, 148–51

Financial planning, 239–41

Fishing industry, 64–68, 140–44

Flat tax, 134

Fourier, Joseph, 159

Fourteenth Amendment, 136

France, 197

Free-market environmentalism

abatements, 109–12, 122–23

Coase theorem

complete information, 112, 115

divide-the-pie game, 112–14, 117–18

illustration, 107f

incomplete information, 115–18

multiple victims analysis, 109, 119–21

no-market analysis, 108–12

standard presentation, 106–8

complete information, 112–14, 115, 122–23, 124, 125n7

divide-the-pie game, 112–14, 117–18

experimental literature, 112, 113–14, 125n10

theoretical literature, 112–13, 114

efficiency criterion, 109–114, 122

externalities, 107–8

free-rider problem, 123–24

laissez-faire economics, 106, 109

multiple victims analysis, 109, 119–21, 123–24

representative coalitions, 120–21

separate negotiations, 120

myth of, 121–25

perfect knowledge, 114–15, 123–24

perverse incentives, 121–22, 123–24

property rights, 105, 107–9, 121–23

transaction costs, 107–8, 119–21, 122, 123–24

Free-rider problem

climate change, 69

climate treaty guidelines, 212–13

climate treaty negotiations, 163–64

consumption, 84

contingent valuation (CV) surveys, 26–27

Earth Summit (Rio de Janeiro, 1992), 163–64

free-market environmentalism, 123–24

Kyoto Protocol (1997), 163–64, 176–77

mainstream economic theory, 53–54, 57–58, 59–63, 69, 88

Free trade agreements, 98

Frictional unemployment, 96, 97

Frontier economy, 76, 100n1

Full-world economics

ecosystem complexity, 8–9

externalities, 6–7

growth limits, 4–6

Gender Development Index (GDI), 44

Gender Empowerment Index (GEM), 44

Genuine progress indicator (GPI), 44

Germany, 197

GINI coefficient, 40, 41, 91

Governing the Commons (Ostrom), 139–40

Grandfather system, 131

Green consumerism, 233

Greenhouse Development Rights Framework, 191, 197–99, 206–7, 213n2

Greenhouse gas (GHG) emissions

climate change, 68–69, 79

climate treaty guidelines, 196, 205–6

cost-benefit analysis (CBA), 23, 30–32, 58, 59f

Earth Summit (Rio de Janeiro, 1992), 161

Green investment, 240

Green jobs, 240

Green New Deal, 230–31, 241n2

Green tax, 95

Gross domestic product (GDP)

current GDP, 37

defined, 36–38, 48n1

double counting, 36–37

measure limitations, 38–39

per capita GDP, 44–45, 93–94

real GDP, 37, 76–79

sustainable development, 36–39, 44–46

Gross national product (GNP), 36, 48n1, 77, 100n2

Growth boundaries, 138

Hahnel, R., 87

Hansen, James, 160

Hedonic calculus, 87

Hedonic regression, 28

Human capital, 41–42

Human Development Index (HDI), 44

Human Development Report (United Nations), 44

Hypothetical bias, 27

Iceland, 162

Ignorance bias, 27

Income inequality, 40, 41, 83, 91–94

Inflation, 37

In my back yard (IMBY) principle, 234–36

Institutional analysis and development (IAD), 140, 143–44

Intergenerational equity, 41–42

Intergovernmental Panel on Climate Change (IPCC), 160–61

Intragenerational equity, 41

Invisible hand theory, 6–7, 9n1, 54–55

Iteration facilitation board (IFB), 237–39

Japan, 176–77

Jobs in the Woods program, 99

Job Training Partnership Act (JTPA), 99

Joint products, 38–39

Keeling, Charles, 160

Keeling curve, 160

Keynes, John Maynard, 4

Kuznets, S., 91–94

Kyoto Protocol (1997)

abatements, 182–83

carbon cycle, 186

carbon trading

conditions of, 162, 166–72

efficiency criterion, 181–83

equity criterion, 183–84

equivalent emissions, 185–86

limitations of, 184–90

loopholes, 186–88

mandatory caps, 164–66, 175–76, 183–84

merits of, 181–84

paternalism, 188

certified emissions reductions (CERs), 166–72, 180–81, 184, 185, 188

Clean Development Mechanism (CDM), 162, 165, 170–72, 178, 180, 185, 189, 190, 199–201, 203

deforestation, 163, 188–90, 200–1

effectiveness criterion, 164

efficiency criterion, 165–66, 181–83, 190

emissions reduction schedule, 178

enforcement of, 192

environmental unemployment, 96

equity criterion, 164–65, 183–84, 191

free-rider problem, 163–64, 176–77

less developed countries (LDCs), 162, 165, 170–72, 177, 178, 183–84, 185, 188–90, 191

limitations of, 178

merits of, 175–77

monitoring problems, 179–81

more developed countries (MDCs), 162, 164, 165, 166–72, 176–77, 178, 183–84, 185, 186–88, 191

myth versus reality, 166–72

national emission measures, 179–80

negotiations for, 162–63

ratification incentives, 176–77

Reducing Emissions from Deforestation and Degradation (REDD), 188–90, 200–201, 214n3

responsibility and capability criterion, 177, 191

United States position, 162–63, 176–77, 191

Laissez-faire economics, 106, 109

Laundry detergent, 62–63, 73n3

Leisure time, 81–83

Less developed countries (LDCs)

climate treaty guidelines, 197, 202–3, 206–7, 208

Earth Summit (Rio de Janeiro, 1992), 161

Kyoto Protocol (1997), 162, 165, 170–72, 177, 178, 183–84, 185, 188–90, 191

Logging industry, 96, 99

Logic of Collective Action, The (Olson), 96

Macroeconomic theory, 4–5

Mainstream economic theory

absentee ownership, 84–85

capitalism, 79–81, 85, 101n6

climate change, 68–69

climate treaty guidelines, 196

collective consumption, 84

common pool resource (CPR), 53–54, 64–68, 69

competition, 84–85

consumption, 81–84, 85–91

ecological economics, 76–79

effective demand, 60–61

employment versus environment, 96–100

empty-world economics, 3–4, 5–6

endogenous preferences model, 85–91

environmental Kuznets curve, 91–94

exogenous preferences model, 87

externalities, 53–59

free-rider problem, 53–54, 57–58, 59–63, 69, 88

green consumerism, 62–63

growth imperative, 75–81

leisure time, 81–83

macroeconomics, 4–5

marginal private benefit (MPB), 55, 58, 59f, 63f

marginal private cost (MPC), 55, 58, 59f, 67

marginal social benefit (MSB), 54–55, 58, 59f, 61, 63f

marginal social cost (MSC), 54–55, 58, 59f, 61, 63f

Marxism, 79–81, 101n6

microeconomics, 4, 7

natural resource economics, 4–6

net national product (NNP), 71–73

net national welfare (NNW), 71–73

perverse incentives, 53–54, 63, 67, 69, 75–76, 85

Pigovian taxes and subsidies, 95–96

pollution-damage-revealing mechanism, 95, 102n20

private resource extraction, 53–54, 69–73

profit maximization, 84–85, 86, 101n16

public goods, 53–54, 59–63, 69

rate of time discount, 69–73

theoretical development, 4–6

transaction costs, 56–58, 61, 86–87, 88–89

Marginal changes, 12–13

Marginal private benefit (MPB)

externalities, 55, 58, 59f

public goods, 63f

Marginal private cost (MPC)

common pool resource (CPR), 67

externalities, 55, 58, 59f

Marginal social benefit (MSB)

cost-benefit analysis (CBA), 12–13, 22

externalities, 54–55, 58, 59f

public goods, 61, 63f

Marginal social cost (MSC)

cost-benefit analysis (CBA), 12–13, 21–22

externalities, 54–55, 58, 59f

Marrakech Accords, 163

Marxism

economic growth, 79–81, 101n6

exchange value, 80

surplus value, 80

Microeconomic theory, 4, 7

Monitoring

Clean Development Mechanism (CDM), 162, 165, 170–72, 178, 180, 185, 189, 190, 199–201, 203

designated national authority (DNA), 203

international monitoring agency, 201–3

Kyoto Protocol (1997), 179–81

project design document (PDD), 203

real-world environmental policy, 132–33

More developed countries (MDCs)

climate treaty guidelines, 196–97, 201–3, 206–10

Earth Summit (Rio de Janeiro, 1992), 161

Kyoto Protocol (1997), 162, 164, 165, 166–72, 176–77, 178, 183–84, 185, 186–88, 191

National Academy of Sciences, 18

National defense, 84

Natural capital

net domestic product (NDP), 38–41

sustainable development, 38–14, 48n2

Natural resource economics, 4–6

Net domestic product (NDP)

defensive expenditures, 39

natural capital, 38–41

per capita NDP, 40–41, 44, 45

produced capital, 38–41

sustainable development, 38–41, 44

Net national product (NNP) per capita, 71–73

Net national welfare (NNW)

defined, 71

per capita NNW, 71–73

New Zealand, 162

North American Free Trade Agreement (NAFTA), 98

North East Regional Greenhouse Gas Initiative, 132

Norway, 162

Not in my back yard (NIMBY) principle, 230, 235–36

Oil spills, 39, 232

Olson, M., 96

Option value, 25

Ordinal theory of utility, 14–15

Organization of Economic and Cooperation and Development (OECD), 162

Ostrom, E., 139–40

Overspent American, The (Schor), 82

Overworked American, The (Schor), 81

Participatory economy, 237–39, 242n8

Participatory planning procedure, 237–39, 242n7

Perverse incentives

deforestation, 189, 200–1

free-market environmentalism, 121–22, 123–24

mainstream economic theory, 53–54, 63, 67, 69, 75–76, 85

Pigou, A.C., 7, 55, 95–96

Pigovian taxes and subsidies, 7, 95–96, 237, 238–39

Plass, Gilbert, 159–60

Political economy, 3

Political Economy of the Environment (Boyce), 239

Political strategy, 229–32

Pollution-damage-revealing mechanism, 95, 102n20

Pollution tax, 95

Power-weighted decision rule, 20

Preference development effect, 88, 90

Preference fulfillment effect, 88, 90

Privatization, 140–41, 154n14

Produced capital

net domestic product (NDP), 38–41

sustainable development, 38–44

Profit maximization, 84–85, 86, 101n16

Progressive tax, 133–35

Project design document (PDD), 203

Property rights

free-market environmentalism, 105, 107–9, 121–23

real-world environmental policy, 129, 132, 135–39

Proportional tax, 134

Public goods

climate change, 69

consumption, 84

environmental protection, 62–63

mainstream economic theory, 53–54, 59–63, 69

Quiet Revolution in Welfare Economics (Albert and Hahnel), 87

Rate of time discount

cost-benefit analysis (CBA), 20–21, 22f

future market failure, 71

high rate problem, 70–73

net national welfare (NNW), 71–73

resource extraction, 69–73

Rational approach, 11, 14

Readjustment assistance programs, 98–99

Real-world environmental policy

abatements, 128–29, 153n2

carbon cap-and-trade programs, 130–32, 144–49, 153n1

auctioned permits, 131, 132, 135, 146–48

false trading, 145–47

financial crises, 145–46, 148–51

grandfather system, 131

speculation, 146–49

supply and demand, 148, 154n19

common pool resource (CPR), 139–44

community management, 142–44, 154n16

institutional analysis and development (IAD), 140, 143–44

privatization, 140–41, 154n14

regulation, 141–42, 154n15

distributive effects, 133–35

enforcement, 132–33

monitoring, 132–33

property rights, 129, 132, 135–39

rebates, 135

regulation, 128–29, 153n1

stock market, 149–51

taxation

carbon tax, 129–30, 153n1

flat tax, 134

progressive tax, 133–35

proportional tax, 134

regressive tax, 133–35

revenue-neutral tax, 134

tax incidence, 133, 154n7

tax-phobia, 151–52

urban sprawl, 135–39

zoning regulations, 135–39

agricultural preserves, 137, 138–39

development zones, 138

downzoning, 135–36, 137, 138, 139

growth boundaries, 138

smart growth, 137, 138–39

transfer development rights (TDRs), 138–39, 154n11

upzoning, 138

Rebates, 135

Redefining Progress, 44

Reducing Emissions from Deforestation and

Degradation (REDD), 188–90, 200–1, 214n3

Regressive tax, 133–35

Regulation

common pool resource (CPR), 141–42, 154n15

real-world environmental policy, 128–29, 141–42, 153n1

Relative income hypothesis, 82–83

Resources for the Future, 5

Responsibility and capability criterion

climate treaty guidelines, 197–98, 206–7

Earth Summit (Rio de Janeiro, 1992), 161, 165

Kyoto Protocol (1997), 177, 191

Revelle, Roger, 159–60

Revenue-neutral tax, 134

Russia, 162, 163, 176–77

Safety standards, 18

Say’s Law, 4–5, 91

Scale effect, 93

Schor, J., 81, 82

Second World Climate Conference (1989), 160

Smart growth, 137, 138–39

Smith, Adam, 3–4, 54–55

Snowballing inefficiency theorem, 89–90

Social capital, 41–42, 48n4

Social justice theory

cost-benefit analysis (CBA), 18

Social progress, 44–46, 49n8

Social sustainability, 46

Spaceman economy, 76, 100n1

Sri Lanka, 44

Steady state economy, 36

Stock market, 149–51

Strategic bias, 27

Strong sustainability, 42–44

Structural unemployment, 96–100

Suess, Hans, 159–60

Sulfur dioxide emissions

cost-benefit analysis (CBA), 24, 58

structural unemployment, 97

Surplus value, 80

Sustainable development

capital stock, 38, 42–44

defined, 35–36, 46–48

Earth Summit (Rio de Janeiro, 1992), 161

economic democracy, 41–42, 44–46

economic efficacy, 40–41, 44–45

economic justice, 41–42, 44–46

economic progress, 40–41, 44–46

empty-world economics, 41

environmental sustainability, 42–44, 46, 48n6, 49n9, 48n6, 49n9

Gender Development Index (GDI), 44

Gender Empowerment Index (GEM), 44

genuine progress indicator (GPI), 44

GINI coefficient, 40, 41

gross domestic product (GDP), 36–39, 44–46, 48n1

human capital, 41–42

Human Development Index (HDI), 44

intergenerational equity, 41–42

intragenerational equity, 41

joint products, 38–39

natural capital, 38–44, 48n2

net domestic product (NDP), 38–41, 44

produced capital, 38–44

social capital, 41–42, 48n4

social progress, 44–46, 49n8

social sustainability, 46

steady state economy, 36

strong sustainability, 42–44

sustainable growth, 36

weak sustainability, 42–44

workable definition, 46–4

Sustainable growth, 36

Sweden, 99

Taxation

carbon tax, 129–30, 153n1, 204–7

corrective tax, 95–96, 237, 238–39

effluent tax, 95

flat tax, 134

green tax, 95

Pigovian taxes and subsidies, 7, 95–96, 37, 238–39

pollution tax, 95

progressive tax, 133–35

proportional tax, 134

regressive tax, 133–35

revenue-neutral tax, 134

tax incidence, 133, 154n7

tax-phobia, 151–52

Technology effect, 93–94

Throughput

consumption, 81–82

defined, 6

economic growth, 76–79, 100n3

Tipping points

cost-benefit analysis (CBA), 21–24

ecosystems, 8

Tragedy of the commons, 64, 67, 139–4

Transaction costs

free-market environmentalism, 107–8, 119–21, 122, 123–24

mainstream economic theory, 56–58, 61, 86–87, 88–89

Transfer development rights (TDRs), 138–39, 154n11

Travel cost studies, 27–28

Tyndall, John, 159

Ukraine, 162

Unemployment

cyclical unemployment, 96–97

economic conversion programs, 98, 99–100

energy consumption, 97, 102n21

versus environmental standards, 96–100

free trade agreements, 98

frictional unemployment, 96, 97

logging industry, 96, 99

readjustment assistance programs, 98–99

structural unemployment, 96–100

United Nations Conference on Environment and Development. See Earth Summit (Rio de Janeiro, 1992)

United Nations Environment Program, 160

United Nations Framework Convention on Climate Change (UNFCCC), 160–61, 165, 175–76

United Nations World Commission on Environment and Development, 35–36, 41, 160

United States

climate treaty guidelines, 208–10

Kyoto Protocol (1997), 162–63, 176–77, 191

United States Constitution, 136, 209

Upzoning, 138

Urban sprawl, 135–39

Use value, 25

Utilitarianism

cardinal theory of utility, 14–15

cost-benefit analysis (CBA), 14–15, 18

ordinal theory of utility, 14–15

Value judgments, 14–16

Vietnam, 44

Village of Euclid, Ohio v. Ambler Realty Company (1926), 136

Warped human development theorem, 90–91

self-warping, 91

Weak sustainability, 42–44

Welfare economics, 7, 115

Willingness to accept damages (WTA) survey, 26–27, 29–30

Willingness to pay (WTP) survey, 26–27, 29–30

World Climate Conference (1979), 160

World Development Report (World Bank), 44

World Meteorological Organization, 160

World Trade Organization, 99

Zoning regulations

agricultural preserves, 137, 138–39

development zones, 138

downzoning, 135–36, 137, 138, 139

growth boundaries, 138

real-world environmental policy, 135–39

smart growth, 137, 138–39

transfer development rights (TDRs), 138–39, 154n11

upzoning, 138