1300 36 33 32

Environmental 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.

Buy Economy and Environment book by Charles Perrings from Australia's Online Bookstore, Boomerang Books.

Book Details

ISBN: 9780521020763
ISBN-10: 052102076X
Format: Paperback
(228mm x 152mm x 11mm)
Pages: 196
Imprint: Cambridge University Press
Publisher: Cambridge University Press
Publish Date: 6-Oct-2005
Country of Publication: United Kingdom

Other Editions

Reviews

» Have you read this book? We'd like to know what you think about it - write a review about Economy and Environment book by Charles Perrings and you'll earn 50c in Boomerang Bucks loyalty dollars (you must be a member - it's free to sign up!)

Write Review


Books By Author Charles Perrings

Our Uncommon Heritage by Charles Perrings

Our Uncommon Heritage

Paperback, April 2014
$71.06
Bioinvasions and Globalization by Charles Perrings

Bioinvasions and Globalization

Paperback, December 2009
$80.96
Biodiversity Loss by Charles Perrings

Biodiversity Loss

Paperback, January 1997
$69.26
Economy and Environment by Charles Perrings

Economy and Environment

Hardback, September 1987
$166.50