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Economic analysis of environmental policy and regulation
While many topics and issues are canvassed here, overall the book pursues three fundamental themes. First, it focuses on why environmental economics in practice is not primarily an exercise in estimating the value of pollution damages and then promulgating taxes to make polluters internalize those harms, but consists mainly of applied cost-benefit analysis. Of course, many researchers are occupied with valuing environmental damages using a variety of techniques, but that is not the central analytical support environmental economics contributes to the regulatory and policy-making process. Second, the material presented in this book shows that much of the hard work in practical applications of environmental economics involves fashioning a coherent set of questions for analysis, questions that reflect multiple Shapiro, policy goals and constraints, the complexity of real-world pollution problems, and the limitations of available information. The third and somewhat different emphasis of the book is on how practical environmental policy analyses often pose some deceptive theoretical questions, particularly problems in measuring the social costs and benefits of environmental regulations. Analysts often find these puzzles challenging at first, but transparently obvious after solving them.
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