Solution Manual Environmental Economics 2024 Release Field Field

EnvironmentalvEconomics,v2024vRelease




Instructor’s Manual to Accompany E
v v v v




NVIRONMENTAL ECONOMICS v



An Introduction v




2024 Release
v




Barry C. Field v v


University of Massachusetts Amherst
v v v




Martha K. Field Greenfiel v v v


d Community College
v v




©vMcGrawvHillvLLC.vAllvrightsvreserved.vNovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGrawvHillvLL
C.

,EnvironmentalvEconomics,v2024vRelease


Table of Contents
v v




Preface .................................................................................................................................. 2

SectionvI.vIntroduction

Chapterv1. WhatvIsvEnvironmentalvEconomics? .................................................................... 4
Chapterv2. ThevEconomyvandvthevEnvironment..................................................................... 6

SectionvII.vAnalyticalvTools

Chapterv3. BenefitsvandvCosts,vSupplyvandvDemandv....................................................... 9
Chapterv4. Markets,vExternalities,vandvPublicvGoodsv...................................................... 15
Chapterv5. ThevEconomicsvofvEnvironmentalvQuality..................................................... 19

SectionvIII.vEnvironmentalvAnalysis

Chapterv6. FrameworksvofvAnalysisv.................................................................................. 24
Chapterv7. Benefit–CostvAnalysis:vBenefits...................................................................... 28
Chapterv8. Benefit–CostvAnalysis:vCostsv.......................................................................... 34

SectionvIV.vEnvironmentalvPolicyvAnalysis

Chapterv9. CriteriavforvEvaluatingvEnvironmentalvPolicies............................................... 37
Chapterv10. DecentralizedvPolicies:vLiabilityvLaws,vPropertyvRights,vVoluntaryvAction... 41
Chapterv11. Command-and-ControlvStrategies:vThevCasevofvStandardsv............................. 47
Chapterv12. Incentive-BasedvStrategies:vEnvironmentalvChargesvandvSubsidiesv............... 53
Chapterv13. Incentive-BasedvStrategies:vMarketvTradingvSystemsv..................................... 57

SectionvV.vEnvironmentalvPolicyvinvthevUnitedvStates

Chapterv14. FederalvWatervPollution-ControlvPolicyv.......................................................... 62
Chapterv15. FederalvAirvPollution-ControlvPolicy............................................................... 67
Chapterv16. FederalvPolicyvonvToxicvandvHazardousvSubstancesv....................................... 71
Chapterv17. StatevandvLocalvEnvironmentalvIssuesv............................................................. 75

SectionvVI.vGlobalvEnvironmentalvIssues

Chapterv18. GlobalvClimatevChange ....................................................................................... 78
Chapterv19. InternationalvEnvironmentalvAgreements............................................................ 82
Chapterv20. Globalization ....................................................................................................... 85
Chapterv21. EconomicvDevelopmentvandvthevEnvironment .................................................... 88




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©vMcGrawvHillvLLC.vAllvrightsvreserved.vNovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGrawvHillvLL
C.

,EnvironmentalvEconomics,v2024vRelease


Preface
vEnvironmentalvEconomics,vAnvIntroductionvisvdesignedvasvavtextvforvavone-

semestervcourse.vItvisvbasedvonvcoursesvwevhavevtaughtvforvmanyvyears,vcoursesvpredicatedvo
nvthevnotionvthatvthevsubjectvisvinterestingvandvimportantvenoughvtovbevpresentedvtovavwideva
udiencevofvlower-
divisionvstudents,vrathervthanvdelayedvuntilvstudentsvhavevnegotiatedvavsetvofvprerequisitevco
urses.vThus,vthevbookvisvmeantvtovbevusedvbyvstudentsvwhovhavevnotvnecessarilyvhadvanyveco
nomicsvyet.vNevertheless,vthevbookvisvintendedvtovhavevavdistinctlyvanalyticalvperspective.vG
ivenvthesevobjectives,vit’svnecessaryvtovfocusvonvavlimitedvnumbervofvprimaryvconcepts—
incentives,vefficiency,vthevequimarginalvprinciple,vcost-
effectiveness,vandvsovon.vIt’svalsovnecessary,vinvthevlatervchaptersvonvdomesticvandvinternati
onalvenvironmentalvpolicy,vtovconcentratevonvthevmainvstoriesvandvavoidvgettingvdrawnvintov
thevendlessvdetailsvthatvthesevsubjectsvcontain.

Aftervthevfirstvtwovintroductoryvchapters,vtherevarevthreevchaptersvonvthevmostvbasicvo
fveconomicvprinciples.vThesevarevprobablyvaboutvthevminimumvforvsomeonevwhovhasvneverv
hadvanyveconomics.vInvwritingvthesevchapters,vtherevwasvavcontinuingvtemptationvtovgovforva
vslightlyvhighervlevelvofvsophistication.vWevtriedvveryvhardvtovresistvthis,vtovkeepvclearlyvinvm

indvthevtypevofvstudentvforvwhomvthevbookvisvprimarilyvintended.vWevwouldvhopevthatvstude
ntsvwhovhavevhad,vsay,vintroductoryvmicro,vwouldvfindvthesevchaptersvavusefulvreview.

Invthisvinstructor’svmanual,vwevhavevworkedvthroughveachvofvthevchapters,vdiscussin
gv(a)vupdatesvofvsubjectsvthatvarevnewvtovthevchaptervinvthisvedition,v(b)vthevobjectivesvofveac
h,v(c)vmainvideasvcovered,v(d)vpointsvofvdiscussionv(cautions,vtechniquesvwevhavevfoundvuse
ful,vpossiblevextensions,vetc.),vandv(e)vbriefvanswersvtoveachvofvthevquestionsvforvfurthervdisc
ussion.

Thevbookvisv21vchaptersvlong,vperhapsvtoovlongvforvstudentsvtovgetvthroughvcomplete
lyvundervnormalvcircumstances.vThevbookvisvdividedvintovsectionsvsovthatvdifferentvinstructo
rsvcanvemphasizevthevmaterialvtheyvfindvmostvuseful.vAftervhavingvgonevthroughvSectionsvIva
ndvII,vyouvmayvwishvtovpickvandvchoosevchaptersvfromvthevothervsectionsvdependingvonvthevr
elativevemphasisv youvwishvtovputvon:v(a)vbenefit–costvanalysis,
(b)vpolicyvanalysis,v(c)vU.S.venvironmentalvpolicy,vandv(d)vinternationalvissues.

Thevquestionsvatvthevendvofvthevchaptersvarevcalledv—
discussion‖vquestions,vbutvtheyvarevperhapsvmorevspecificvthanvthisvlabelvimplies.vForvth
evmostvpart,vtheyvarevnotvmeantvtovleadvtovopen-
endedvdiscussionvbutvhavevanswersvthatvwevhopevarevmorevorvlessvcorrect.vTheyvarevdesign
edvtovleadvstudentsvtowardvmakingvmodestvextensionsvofvthevideasvcovered,vwhichvshouldvh
elpvthemvbothvreviewvthevmaterialvandvperhapsvthinkvmorevdeeplyvaboutvit.

Thevexhibitsvpresentedvthroughoutvthevchaptersvarevforvthevpurposevofvillustratingvpo
intsvinvthevtext.vThevobjectivevisvtovshowvstudentsvthatvtheveconomicvideasvwevarevdiscussing
vinvthevclassroomvarevactuallyvatvworkvinvthevreal vworld.


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©vMcGrawvHillvLLC.vAllvrightsvreserved.vNovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGrawvHillvLL
C.

, EnvironmentalvEconomics,v2024vRelease


AppendixvAvofvacronymsvandvabbreviationsvisvupdated.vWevrecommendvhighlightin
gvthisvfeaturevforvstudents.vAvshort,vmatchingvquizvofvaboutv10vofvthevmostvusedvacronymsvor
vabbreviations,vlikevthevEPA,vhelps vplugvstudentsvintovthevlingovofvenvironmentalveconomic

s.

AppendixvBvisvavlistvofvwebsites,vwhichvcanvbevfoundvinvthevInstructor’svResourcesva
reavofvConnect.

Thev2024vReleasevofvthevbookvpreservesvthevbasicvstructurevofvthevearlierveditions.
Somevofvthevnewvmaterialvwevhavevaddedvincludes:

 ForevervChemicalsv(PFAS) Chapterv16
 ToxicsvandvDrinkingvWatervContamination Chapterv14
 CircularvEconomy Chaptersv2vandv17
 NaturalvCapital Chapterv2
 EconomicsvofvTechnicalvChange Chapterv5
 ParisvAgreementvandvSubsequentvCOPvMeetings Chaptersv18,v19,vandv21
 EnvironmentalvJustice Chaptersv9vandv16
 EconomicsvofvSubsidiesv&vthevInflationvReductionvAct Chapterv15
 CarbonvOffsetvMarkets Chapterv13
 ElectricvVehiclesvandvEnergyvIntensity Chapterv15
 GreenvTechnologyvTransfervandvDevelopingvCountries Chapterv21




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©vMcGrawvHillvLLC.vAllvrightsvreserved.vNovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGrawvHillvLL
C.