Need help with my writing homework on The State of the Environment and Government Environmental Policy. Write a 1500 word paper answering; It would be very relevant to quote a few sentences regarding the definition of Environmental economics laid down by the National Bureau of Economic Research Environmental Economics program.
“undertakes theoretical or empirical studies of the economic effects of national or local environmental policies around the world. Particular issues include the costs and benefits of alternative environmental policies to deal with air pollution, water quality, toxic substances, solid waste, and global warming.” (para 6)
According to Davis Lamb, the environmental economics’ focal point is to centralise on the perception of the externality of the environment. In other words, some or more of the outcomes of a commotion are not evaluated in accordance with its fiscal result. As an example, he states that when the pollution level of a given state reaches its optimum level the price of the producer of this pollution subject should be taken into consideration otherwise the balance would be in the brink of commotion. Therefore it is encouraged to formulate the outcome of a polluting medium in respect of utility oriented price format.
“in connection to public goods (goods that are “non-excludable” and “non-rival” – that is, they are open to all). Visitors to an open-access recreational area will use the resource more than if they had to pay for it, leading to environmental degradation. This, of course, assumes that there is no other policy instrument (for example, permits, regulation) being used to control access.” (Lamb, 2006, 148)
In economic terminology, according to, Davis Lamb in his book Cult to Culture: The Development of Civilization on the Strategic Strata,
“these are examples of market failures, and that is an outcome which is not efficient in an economic sense. Here the inefficiency is caused because too much of the polluting activity will be carried out, as the polluter will not take the interests of those adversely affected by the pollution into account. This has led to controversial research into measuring well-being which tries to measure when pollution is actually starting to affect human health and general quality of life”. (Lamb, 2006, pg 149)
Therefore it is quite evident that the prime concern of the subject environmental economics is to formulate logical outcome and settlement of the issue of pollution and control thereby saving the environment. To attain this objective there are four major solution schemes present as an effective tool. Along with these four, there are also other alternative tools that are quite logical in implementation.
The four basic formulations could be enumerated as
Better defined property rights.
Taxes and tariffs on pollution or Removal of “dirty subsidies”.
Quotas on pollution.
According to the Coase Theorem, the assigning property rights is based on a fact that there is all probability that this application would lead to an optimal solution of environmental policies of economics whereby in accordance to regardless of who receives them, the basic .cost of transaction would reveal an inconsequential state where the stakeholders of the negotiating parties would be minimised.