Economy and Environment
A Theoretical Essay on the Interdependence of Economic and Environmental Systems
By (author) Charles Perrings
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Economy and Environment by Charles Perrings
Book DescriptionEnvironmental external effects are evidence of the inability of market prices to reflect the interdependence of economic activities undertaken within a common environment. They are an essential - not a peripheral - feature of all market economics. This essay shows how external effects are produced by the interaction of the economy with its environment, using a classical mass-balance model. No matter how efficient the market may seem to be, the use of market prices to determine depletion and pollution decisions creates more problems than it solves. Far from sharing the stable or relatively stable equilibrium properties of most economic models, the market economy is shown to be forced by its environment through a seemingly chaotic sequence of states. Reliance on the market to accommodate each change of direction merely exaggerates the general instability of the system. The 'market solution' to environmental problems is shown to generate only increasing uncertainty, a progressive myopia, and a heightened risk of conflict.
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Book DetailsISBN: 9780521020763
(228mm x 152mm x 11mm)
Imprint: Cambridge University Press
Publisher: Cambridge University Press
Publish Date: 6-Oct-2005
Country of Publication: United Kingdom
Books By Author Charles Perrings
Our Uncommon Heritage, Hardback (April 2014)
An important, interdisciplinary study of the many dimensions of human-driven biodiversity change.
Bioinvasions and Globalization, Hardback (December 2009)
This volume addresses the issue of biological invasions from both an ecological and economic perspective, providing an in-depth evaluation of the science and its implications for managing the causes and consequences of one of the most pressing environmental issues facing humans today.
Ecological Economics, Hardback (December 2008)
The collection will comprise of classic and contemporary papers in ecological economics and its precursors, exploring how the field has developed over time and identifying the main strands in the literature.
Biodiversity Loss, Paperback (January 1997)» View all books by Charles Perrings
The book reports key findings of a research program in which economists and ecologists considered the consequences of biodiversity loss.
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