Suggested Readings and Resources

Websites of General Interest:


Association of Environmental and Resource Economists,

European Association of Environmental and Resource Economists,

Environmental Economics blog,

Intergovernmental Panel on Climate Change,

Resources for the Future,

Career Information for Environmental Economists,


Good General Sources for Environmental Economics Studies, written for the knowledgeable public: 

Review of Environmental Economics and Policy, put out by the Association of Environmental and Resource Economists

Resources Magazine, put out by Resources for the Future

Choices Magazine, put out by the Agricultural and Applied Economics Association



Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5:  Measuring Benefits to Consumers

Chapter 6:  Revealed Preference

Chapter 7:  Stated Preference

Chapter 8:  From Production to Pollution

Chapter 9: Production, Pollution, Output and Prices

Information on emissions from paper production is from Lauren Blum, Richard A. Denison, and John F. Ruston, “A Life-Cycle Approach to Purchasing and Using Environmentally Preferable Paper,”  Journal of Industrial Ecology 1(3) (1998): 15-46.

Using life-cycle analysis to get at the full environmental cost gives an interesting view of current biofuel production.  Ethanol Can Contribute to Energy and Environmental Goals Science 311, 506 (2006); Alexander E. Farrell, et al.

The variable and fixed costs of a paper mill in Sweden are from “Reuse or Burn? Evaluating the Producer Responsibility of Waste,” by Per-Olov Marklund and Eva Samakovlis, Journal of Environmental Planning and Management 46 (3) (May 2003):  381-398.

Information on emissions controls on paper production in Europe is from “EU Paper Industry Fears Pollution Control Costs,” Reuters, May 21 1999.

More information about the Clean Air Act, including a link to the text of the law, is at

Grandfathering led to a contentious and long legal battle:

  • NYT magazine  April 4, 2004  "Changing all the rules" by Bruce Barcott.  Section 6; Column 1; Magazine Desk; Pg. 38 (New Source Performance Standards) 
  • AEP billion $ Settlement
  •  Environmental Defense Fund v. Duke Energy


    Chapter 10: Maximizing Net Benefits in the Presence of Externalities

    The candidates’ positions on climate change and gasoline taxes were found on June 4, 2008 at,, and, and in the Wall Street Journal, May 2, 2008 (“Clinton Introduces Gas-Tax Holiday Bill”).

    The external costs of driving listed in Table 10.1 are from Winston Harrington and Virginia McConnell,  “Motor Vehicles and the Environment,”  Resources for the Future Report (April 2003), found at

    The estimate of the demand elasticity for gasoline is the median estimate from Molly Espey, “Gasoline Demand Revisited: An International Meta-Analysis of Elasticities,” The Energy Journal 20 (1998):  273-295.  This number is not at all known with any precision despite its import for pollution policy.

    Carol Dahl and Thomas E. Duggan,U.S. Energy Product Supply Elasticities: A Survey and Application to the U.S. Oil Market,” Resource and Energy Economics, 18 (1996): 243-263, surveys supply elasticities; the estimate used here for supply elasticity is on the higher end of those cited.

    Hughes, Knittel. and Sperling..contend that the price elasticity of gas has fallen over time and is now very inelastic. Evidence of a Shift in the Short-Run Price Elasticity of Gasoline

    Chapter 11:  Private Markets and the Environment:  The Coase Theorem

    Ronald Coase Institue includes an interview that shows Coase's view of the Coase Theorem  Also the Reason Magazine interview with Thomas Hazlett  Don't miss how Coase started life as a socialist.

    The efficient level of SOx is discussed in H. Spencer Banzhaf, Dallas Burtraw, and Karen Palmer, “Efficient Emission Fees in the U.S. Electricity Sector,”  Resource and Energy Economics 26 (2004):  317-341.

    Ronald Coase’s article is, “The Problem of Social Cost,” Journal of Law and Economics 3 (October 1960):  1-44.

      A discussion of “free market environmentalism” by the Property and Environment Research Center was found at, accessed June 13, 2006.

    Information about conservation easements and Habitat Conservation Plans, including the one in San Diego County, can be found in B. Drummond Ayres, Jr., “San Diego Council Approves ‘Model’ Nature Habitat Plan,” New York Times (March 20, 1997)

    and John H. Cushman, Jr., “The Endangered Species Act Gets a Makeover,” New York Times (June 2, 1998); 

    The Nature Conservancy’s website, and;

      and the U.S. Fish and Wildlife Service publication Habitat Conservation Plans: Working Together for Endangered Species,

    Information about SOx permits can be found at  The 1997 congressional report on tradable permits is Hayden G. Bryan, Senior Economist, Joint Economic Committee of the U.S. House of Representatives (Jim Saxton, Chairman), Joint Economic Committee Study: Tradable Emissions (July 1997).   Note 4 of the report refers to Coase and “The Problem of Social Cost.”  The report can be found at

    The story about American Electric Power buying the town of Cheshire is by Katharine Q. Seelye, “Utility Buys Town it Choked, Lock Stock and Blue Plume,” New York Times, May 13, 2002,

    Koichiro Ito (then a graduate student at Berkeley) devised a trading game for classroom play to show how the ability to trade emission rights affects total costs.

    Chapter 12  Government Policies for Environmental Protection

    The map of groundwater nitrate pollution was found at:

    Ambient air quality standards are listed at, accessed 9/12/08.

    The example of marginal costs of abatement for power plants and cars is from Meredith Fowlie, Christopher R. Knittel, and Catherine Wolfram, Optimal Regulation of Stationary and Non-stationary Pollution Sources, Working Paper 14504 (National Bureau of Economic Research, Cambridge, MA November 2008),

    The RECLAIM program is described at

    All of the information about the Regional Greenhouse Gas Initiative, and much more, can be found at

    The quote about law and sausages is attributed to the 19th century German Chancellor Otto von Bismarck at 

    The information about SOx and NOx emissions is from the U.S. Energy Information Administration, “Emissions from Energy Consumption at Conventional Power Plants and Combined-Heat-and-Power Plants, 1995 through 2006,” Electric Power Annual, Table 5.1 October 22, 2007.

    The comparison of American and European approaches is from Charles W. Howe, “Taxes versus Tradable Discharge Permits:  A Review in the Light of U.S. and European Experience,” Environmental and Resource Economics 4 (1994):  151-169 and Peter Berck and Runar Brännlund, “Green Regulations in California and Sweden.”

    Chapter 13  Enforcement and Political Economy

    The story of the diesel truck engines can be found in John H. Cushman, “Record Penalty Likely Against Diesel Makers,” New York Times, October 22, 1998, p. A1; Joby Warrick, “Diesel Manufacturers Settle Suit With EPA; Will Pay $1.1 Billion,” Washington Post, October 23, 1998, p. 3; and U. S. Environmental Protection Agency, “DOJ, EPA Announce One Billion Dollar Settlement with Diesel Engine Industry for Clean Air Violations,” October 22, 1998, at , accessed May 25, 2009.

    The smog test fraud story is from a press release of the San Francisco District Attorney’s office, “DA Harris Cracks Down on Environmental Crime:

    Man Convicted and Sentenced for Issuing False Smog Certificates,” April 20, 2009,

    The figure of approximately $3.4 billion for fines, cleanup and damages following the Exxon Valdez spill comes from totaling the numbers given by the United States Supreme Court for cleanup, criminal fines, restitution, restoration, settlements, and the damage award from a civil lawsuit.  The source is the Court’s opinion in Exxon Shipping Company v. Baker (June 25, 2008), 128 Supreme Court Reporter 2605, which reduced the punitive damage award to $507 million. 

    Figures 13.1 and 13.2 were constructed from the marginal cost of abating NOx curve for power plants from Chapter 13.  We divided by the quantity by the approximate number of large power plants, 600, and then converted the curve into its mirror image, the marginal benefit of polluting curve. 

    China’s environmental problems are described in Joseph Kahn and Jim Yardley, “As China Roars, Pollution Reaches Deadly Extremes,” New York Times August 26, 2007, at, accessed October 19, 2009.

    The theory that regulators act to benefit the regulated industry is spelled out in George J. Stigler, "The Theory of Economic Regulation," Bell Journal of Economics and Management Science 2 (Spring 1971): 3‑21 and in Sam Peltzman, “Toward a More General Theory of Regulation,” Journal of Law and Economics 19(2) (August 1976):  211-40. 

    The website of the West County Toxics Coalition is The study of the effectiveness of bucket brigades is by Dara O’Rouke and Gregg P. Macey, “Community Environmental Policing: Assessing New Strategies of Public Participation in Environmental Regulation,” 22(3) Journal of Policy Analysis and Management (2003): 383–414. 

    Research on responses to the Toxics Release Inventory include Shameek Konar and Mark Cohen, “Information as Regulation:  The Effect of Community Right to Know Laws on Toxic Emissions,” Journal of Environmental Economics and Management 32(1) (January 1997):  109-124, and Madhu Khanna, Wilma Quimio, and Dora Bojilova, “Toxics Release Information:  A Policy Tool for Environmental Protection,” Journal of Environmental Economics and Management 36(3) (November 1998):  243-266.

    Information on industry contributions to members of congress comes from  This site, accessed on October 19, 2009, provides data from the public reports of candidates.

    Chapter 14  The Time Factor:  Discounting

    Consumers’ perceptions of fuel economy are discussed in Thomas Turrentine and Kenneth Kurani, “Car Buyers and Fuel Economy?” Energy Policy 35(2), (February 2007):   1213-1223, and Molly Espey and Santosh Nair, “Automobile Fuel Economy:  What Is It Worth?”  Contemporary Economic Policy 23(3) (July 2005):  317-323.

    There is a very readable survey of consumer’s energy conservation decisions in Ken Train, “Discount Rates in Consumer’s Energy Related Decisions:  A Review of the Literature,” Energy 10 (1985): 1243-53.

    For a discussion of the debates about which interest rates government agencies should use, see, Box 2.  The U.S. Environmental Protection Agency’s Guidelines for Preparing Economic Analyses discuss discounting in Chapter 6, at

    The Stern Review on the Economics of Climate Change was published on October 30, 2006 under the direction of Nicholas Stern, who was then Head of the Government Economic Service of the United Kingdom.  More information about it, including a link to the report itself, is at  The quote is from p.31.

    Maureen L. Cropper, Sema K. Aydede, and Paul R. Portney, “Preferences for Life Saving Programs:  How the Public Discounts Time and Age,” Journal of Risk and Uncertainty 8 (1994):  243-265 describes the study of people’s preferences for saving lives in the present and future.




    Chapter 15  Benefit-Cost Analysis


    The TVA’s information about the Tellico Dam can be found at

    The history of the snail darter is told by Chief Justice Warren Burger in TVA v. Hill, 437 United States Supreme Court Reports 153 (1978), at

    The Endangered Species Act is Title 16, Chapter 5 of the United States Codes, beginning with Section 1531.  The language quoted in this chapter is from Section 1536(2), found at

    For a discussion of the effects of Tellico Dam 25 years after its completion, see Jack Neely, “Tellico Dam Revisited,” Metro Pulse, Vol. 14, No. 50, December 9, 2004,  Another update is Robert Wilson, “Tellico Dam Still Generating Debate:  1970s snail-darter case was high-water mark of discord over structure’s merits,” Knoxville News, April 13, 2008, at

    The National Environmental Policy Act is found in Title 42 of the United States Codes, beginning with section 4321.  There is a thorough discussion in Daniel R. Mandelker, NEPA Law and Litigation, (Thomson Reuters/West, 2nd Ed, updated July 2008), at

    Information about the Works Progress Administration during the Great Depression is at

    The history of Aid to Families with Dependent Children can be found at

    The discussion of the benefits and costs of nuclear power is based on Yangbo Du and John E. Parsons,  Update on the Cost of Nuclear Power,  Center for Energy and Environmental Policy Research, MIT (May 2009), at

    The costs and benefits of regulations by the EPA and other federal agencies can be reviewed on page 4 of the report at

    The EPA Guidelines for Preparing Economic Analysis are at


    Chapter 16  Nonrenewable Resource Management

    The Hotelling rule was first described in Harold Hotelling, “The Economics of Exhaustible Resources,” The Journal of Political Economy 39 (April 1931): 137-175.

    An early study of trends in resource scarcity is Harold Barnett and Chandler Morse, Scarcity and Growth:  The Economics of Natural Resource Availability, Resources for the Future Press, 1963.  Its somewhat curious finding was that, by a variety of measures of resource scarcity, nonrenewable resources appeared to become less scarce over time, while renewable resources were perhaps becoming scarcer. 

    Jeffrey Krautkraemer, “Nonrenewable Resource Scarcity,” Journal of Economic Literature 36(4) (December 1998):  2065-2107, , is one survey of the literature on the Hotelling rule.  It points out that empirical studies rarely find evidence of the Hotelling rule, perhaps due to the complications of estimating it.

    The Headwaters story is told in several news articles: 

    Jane Kay, “North Coast remembers ‘great leader’ Judi Bari; 1,000 attend rites for activist who fought to save old-growth forests,” San Francisco Examiner, March 10, 1997, Section A,

    Glen Martin and Jonathan Curiel, “Last-minute Headwaters deal OK’d; stands of ancient redwoods preserved in landmark sale,” San Francisco Chronicle, March 2, 1999, A-1,;

    “A hard-won deal to save headwaters,” San Francisco Chronicle, March 3, 1999, A-18,;

    Tom Abate, “Pacific Lumber leans - company in Headwaters deal files for bankruptcy, citing logging restrictions,”  San Francisco Chronicle, January 20, 2007, C-1,

    Kelly Zito, “Gap founders win approval to take over Pacific Lumber,” San Francisco Chronicle, June 7, 2008,

    Bruce Weber, “John Campbell dies; led Pacific Lumber in 90s,” San Francisco Chronicle, October 27, 2008, C-3,  These articles can be found in the combined Chronicle and Examiner archives at

    The proved reserves and production of oil in Table 16.1 are from the Energy Information Administration, U.S. Department of Energy, and 

    Sources for the discussion of coal, climate change, and cancer include Philip J. Hilts, “Study Pinpoints Death Risk From Small-Particle Pollution,” New York Times, March 10, 1995,; Joseph Kahn and Jim Yardley, “As China Roars, Pollution Reaches Deadly Extremes,” New York Times, August 26, 2007,,%20Pollution%20Reaches%20Deadly%20Extremes&st=cse; and Elisabeth Rosenthal, “Europe Turns Back to Coal, Raising Climate Fears,” New York Times, April 23, 2008,,%20Raising%20Climate%20Fears&st=cse.  


    Chapter 17  Renewable Resource Management


    The most recent information on herring and cod stocks comes from the United Kingdom Office of National Statistics, at

    Information about elephant poaching is from the World Wildlife Federation Species Action Plan for the African Elephant for 2007-2011,

    Information on grazing on Western range land is from John H. Cushman, Jr., “Administration Gives Up On Raising Grazing Fees,” New York Times, December 22, 1994."administration%20gives%20up%20on%20raising%20grazing%20fees"&st=cse


                John Tierney, “A Tale of Two Fisheries,” New York Times Magazine August 27, 2000, was first discussed in this book in Chapter 3.  It is at least as relevant here.  See


    Chapter 18  Economic Growth and the Environment

    Robert Kennedy’s speech about GNP was given at the University of Kansas, Lawrence, Kansas, on March 18, 1968. It can be found at

    The figures for GDP and GNP in the United States come from the Economic Report of the President,  For the definitions of National Income and Product Accounts, see

    Information about the Pollution Abatement Costs and Expenditures Survey  can be found at

    The Genuine Progress Indicators can be found at:  John Talberth, Clifford Cobb, and Noah Slattery, “The Genuine Progress Indicator 2006:  A Tool for Sustainable Development.”  San Francisco:  Redefining Progress, 2007,

    Volume 4, Issue 1 of the Review of Environmental Economics and Management came out just as this textbook was being finalized.  It includes a review of the literature on the Environmental Kuznets Curve by Richard T. Carson, and a symposium on international trade and the environment, with articles by Arik Levinson, Josh Ederington, and Carolyn Fischer.  More information can be found at .

    The experiences of attainment and non-attainment counties is documented in Michael Greenstone, “The Impacts of Environmental Regulations on Industrial Activity: Evidence from the 1970 and 1977 Clean Air Act Amendments and the Census of Manufactures,” Journal of Political Economy 110 (2002): 1175-1213, 1219. discusses IPAT and includes some references to ongoing research.

    Information on the Beijing Building Materials Group is from the United Nations Framework Convention on Climate Change website, at and

    Two reports on deforestration are: Stephan Schwartzman, Daniel Nepstad, and Paulo Moutinho, “Getting REDD Right: Reducing Emissions from Deforestation and Forest Degradation (REDD) in the United Nations Framework Convention on Climate Change (UNFCCC),”,

    and Federal Ministry for Economic Cooperation and Development, “Reducing Emissions from Deforestation in Developing Countries: The Way Forward,” Eschborn, Germany, April 2007,

    Information on the Amazon Region Protected Area program is from the World Bank ( and the World Wildlife Fund ( 

    The debt for nature swap was reported in Marc Lacey, “U.S. to Cut Guatemala’s Debt for Not Cutting Trees,” New York Times, October 2, 2006,’s%20Debt%20for%20Not%20Cutting%20Trees&st=cse



    Chapter 19: Sustainability


    Robert Solow:  “An Almost Practical Step Toward Sustainability,” Resources Policy 19(3) (September 1993): 162-172,


    For some information on the Plan Sierra example, see the W. K. Kellogg Foundation, “People Preserve their Ecosystem with Plan Sierra,” .

    One discussion of sustainability indicators is in Peter Bartelmus and Graham Douglas, "Indicators of sustainable development," Encyclopedia of Earth,  Cutler J. Cleveland, editor (Washington, D.C.: Environmental Information Coalition, National Council for Science and the Environment, 2007). [Published in the Encyclopedia of Earth April 25, 2007; Retrieved February 6, 2008];

    You can read more about the Genuine Progress Indicator at the website of Redefining Progress,

    The Human Development Index is calculated by the United Nations Development Programme.  The data presented here were taken from

    The United National Environmental Programme Global Environment Outlook (GEO) Database, has a tremendous amount of data on many ecological and environmental indicators.  Develop your own ideas about how to measure sustainability by looking at the data at

    Data on carbon dioxide emissions come from the U.S. Department of Energy, Energy Information Administration, “Emissions of Greenhouse Gases Report,”

    The report that China has surpassed the United States as the largest emitter of carbon dioxide is from Andrew C. Revkin, “China Pulls Ahead in the Great Carbon Race,” New York Times, June 14, 2008,

    The source for the Stern Review is: Stern Review on the Economics of Climate Change,


  • NYT magazine  April 4, 2004  "Changing all the rules" by Bruce Barcott.  Section 6; Column 1; Magazine Desk; Pg. 38 (New Source Performance Standards) 
  • AEP billion $ Settlement Environmental Defense Fund v. Duke Energy
  • Mass v. EPA
  • Green Mountain Chrysler v. Vermont