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SECTION ONE Introduction 1

1 What Is Environmental Economics? 2

2 The Economy and the Environment 23

SECTION TWO Analytical Tools 43

3 Benefits and Costs,Supply and Demand 44

4 Economic Efficiency and Markets 65

5 The Economics of Environmental Quality 84

SECTION THREE Environmental Analysis 111

6 Frameworks of Analysis 112

7 Benefit-Cost Analysis:Benefits 137

8 Benefit-Cost Analysis:Costs 161

SECTION FOUR Environmental Policy Analysis 181

9 Criteria for Evaluating Environmental Policies 182

10 Decentralized Policies:Liability Laws,Property Rights,Voluntary Action 194

11 Command-and-Control Strategies:The Case of Standards 212

12 Incentive-Based Strategies:Emission Charges and Subsidies 232

13 Incentive-Based Strategies:Transferable Discharge Permits 255

SECTION FIVE Environmental Policy in the United States 273

14 Federal Water Pollution-Control Policy 274

15 Federal Air Pollution Control Policy 300

16 Federal Policy on Toxic and Hazardous Substances 329

17 State and Local Environmental Issues 356

SECTION SIX International Environmental Issues 381

18 Comparative Environmental Policies 382

19 Economic Development and the Environment 399

20 The Global Environment 423

21 International Environmental Agreements 448

APPENDIX 468

Abbreviations and Acronyms Used in the Book 468