Environmental laws are laws that protect the environment. This includes environmental regulations; laws governing management of natural resources, such as forests, minerals, or fisheries; and related topics such as environmental impact assessments.
The tragedy of the commons is a phenomenon described in economics and ecology in which common resources, to which access is not regulated by formal rules or fees/taxes levied based on individual use, tend to become depleted. If users of such resources act to maximise their self-interest and do not coordinate with others to maximise the overall common good, exhaustion and even permanent destruction of the resource may result, if the number of the users and the amount they demand exceeds what is available.
Environmental economics is a sub-field of economics concerned with environmental issues. It has become a widely studied subject due to growing environmental concerns in the twenty-first century. Environmental economics "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."
In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's activity. Externalities can be considered as unpriced goods involved in either consumer or producer market transactions. Air pollution from motor vehicles is one example. The cost of air pollution to society is not paid by either the producers or users of motorized transport to the rest of society. Water pollution from mills and factories is another example. All consumers are made worse off by pollution but are not compensated by the market for this damage. A positive externality is when an individual's consumption in a market increases the well-being of others, but the individual does not charge the third party for the benefit. The third party is essentially getting a free product. An example of this might be the apartment above a bakery receiving the benefit of enjoyment from smelling fresh pastries every morning. The people who live in the apartment do not compensate the bakery for this benefit.
Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. For example:
In law and economics, the Coase theorem describes the economic efficiency of an economic allocation or outcome in the presence of externalities. The theorem states that if trade in an externality is possible and there are sufficiently low transaction costs, bargaining will lead to a Pareto efficient outcome regardless of the initial allocation of property. In practice, obstacles to bargaining or poorly defined property rights can prevent Coasean bargaining. This 'theorem' is commonly attributed to Nobel Prize laureate Ronald Coase.
Free-market environmentalism argues that the free market, property rights, and tort law provide the best means of preserving the environment, internalizing pollution costs, and conserving resources.
The wise use movement in the United States is a loose-knit coalition of groups promoting the expansion of private property rights and reduction of government regulation of publicly held property. This includes advocacy of expanded use by commercial and public interests, seeking increased access to public lands, and often opposition to government intervention. Wise use proponents describe human use of the environment as "stewardship of the land, the water and the air" for the benefit of human beings. The wise use movement arose from opposition to the mainstream environmental movement, claiming it to be radical.
Contingent valuation is a survey-based economic technique for the valuation of non-market resources, such as environmental preservation or the impact of externalities like pollution. While these resources do give people utility, certain aspects of them do not have a market price as they are not directly sold – for example, people receive benefit from a beautiful view of a mountain, but it would be tough to value using price-based models. Contingent valuation surveys are one technique which is used to measure these aspects. Contingent valuation is often referred to as a stated preference model, in contrast to a price-based revealed preference model. Both models are utility-based. Typically the survey asks how much money people would be willing to pay to maintain the existence of an environmental feature, such as biodiversity.
The Property and Environment Research Center (PERC), previously known as the Political Economy Research Center, is a free market environmental think tank based in Bozeman, Montana, United States. Established in 1980, PERC is dedicated to original research on market approaches to resolving environmental problems.
John A. Baden is founder and chairman of the Foundation for Research on Economics and the Environment (FREE) based in Bozeman, Montana. In addition to FREE. he cofounded the Property and Environment Research Center (PERC), the Environmental Management MBA program at the University of Washington, and Warriors and Quiet Waters. He has taught at Indiana University, Montana State University, Utah State University, and the University of Washington. Baden and his wife, Ramona Marotz-Badem, own a ranch in Gallatin Gateway, outside Bozeman, Montana.
Forestry laws govern activities in designated forest lands, most commonly with respect to forest management and timber harvesting. Forestry laws generally adopt management policies for public forest resources, such as multiple use and sustained yield. Forest management is split between private and public management, with public forests being sovereign property of the State. Forestry laws are now considered an international affair.
In economics, a common-pool resource (CPR) is a type of good consisting of a natural or human-made resource system, whose size or characteristics makes it costly, but not impossible, to exclude potential beneficiaries from obtaining benefits from its use. Unlike pure public goods, common pool resources face problems of congestion or overuse, because they are subtractable. A common-pool resource typically consists of a core resource, which defines the stock variable, while providing a limited quantity of extractable fringe units, which defines the flow variable. While the core resource is to be protected or nurtured in order to allow for its continuous exploitation, the fringe units can be harvested or consumed.
Attention economics is an approach to the management of information that treats human attention as a scarce commodity and applies economic theory to solve various information management problems. According to Matthew Crawford, "Attention is a resource—a person has only so much of it."
Payments for ecosystem services (PES), also known as payments for environmental services, are incentives offered to farmers or landowners in exchange for managing their land to provide some sort of ecological service. They have been defined as "a transparent system for the additional provision of environmental services through conditional payments to voluntary providers". These programmes promote the conservation of natural resources in the marketplace.
Daniel W. Bromley is an economist, the former Anderson-Bascom Professor of applied economics at the University of Wisconsin–Madison, and since 2009, Emeritus Professor. His research in institutional economics explains the foundations of property rights, natural resources and the environment; and economic development. He has been editor of the journal Land Economics since 1974.
Richard Lyndell Stroup was a free-market environmentalist and emeritus professor of economics at both North Carolina State University and Montana State University. He was co-founder of the Property and Environment Research Center (PERC) and a senior fellow. He was also a research fellow at the Independent Institute, adjunct scholar of the Cato Institute, and a member of the Mont Pèlerin Society. At Montana State University, he served as head of the Department of Agricultural Economics & Economics from 2003 to 2006. Stroup was director of the Office of Policy Analysis in the U.S. Department of the Interior from 1982 to 1984.
Terry Lee Anderson is an academic and author primarily focused on the intersection of economic and environmental issues in America. Anderson's works argue that market approaches can be both economically sound and environmentally sensitive. Influenced by the Austrian school of economic thought, his research helped launch the idea of free-market environmentalism and has prompted public debate over the proper role of government in managing natural resources.
Social accounting is the process of communicating the social and environmental effects of organizations' economic actions to particular interest groups within society and to society at large. Social Accounting is different from public interest accounting as well as from critical accounting.
Gary Don Libecap is a Distinguished Professor of Corporate Environmental Management at the Bren School of Environmental Science & Management and Distinguished Professor of Economics at the University of California Santa Barbara. Libecap is a research associate at the National Bureau of Economic Research; a research fellow at the Hoover Institution; and a senior fellow at the Property and Environment Research Center, and a member of the Research Group on Political Institutions and Economic Policy, Harvard University. He was the Pitt Professor of American History and Institutions at Cambridge University 2010-11, and was previously the Anheuser Busch Professor of Entrepreneurial Studies, Economics, and Law at the University of Arizona.
