Book Summary of Environmental and Natural Resource Economics by T. Tietenberg

Environmental and Natural Resource Economics, T Tietenberg, (Illinois: Scott, Foresman & Company, 1984), 482pp.

Environmental and Natural Resource Economics is a comprehensive examination of the application of economics to environmental problems. It addresses basic theoretical economics and its application to: the population problem, depletable and renewable resources, water and air pollution.

Environmental and Natural Resource Economics is required reading in multiple economics courses, and environmental philosophy courses at CU Boulder. This work is an extensive examination of the contribution to environmental problems by economic growth and possible economic approaches to mitigate these problems. Tietenberg's work begins with a look forward via two prognostication models: a pessimistic one and an optimistic one. He then offers an overview of economics of the environment and an explanation of the way in which economic growth, through property rights and externalities have contributed to the present environmental problems. Prefatory to the central concern of the book the author outlines the economic approach to regulating the market in the face of changing information and uncertainty.

The remainder of the book focuses on different environmental problems in turn highlighting both the problem itself and the economic contribution and possible response to the problem. The first to be focused upon is the population problem. The author discusses the interactive relationship between economic growth and population growth and the economic approach to population control. In this, as in all the chapters, examples illustrating the points made in the chapter are offered. A very useful addition indeed.

The next five chapters are devoted to the allocation of depletable and renewable resources. Beginning with an overview, Tietenberg proceeds to an examination of depletable, non-recyclable energy resources: oil, gas, coal and uranium. Natural gas price controls, the cartel problem, and the problem with transition fuels are discussed. The chapter on depletable recyclable resource (minerals) addresses: efficient allocation, the strategic-material problem, waste disposal and pollution damage.

The consideration of renewable resources is divided between common property resources and private property resources. Fisheries are used to explore the former and cereal grains the latter. Along with market solutions to promote efficient allocation the author examines public policy toward fisheries. The complexities of renewable private property resources are examined through addressing the global scarcity of and distribution of food resources. The author uses Thailand, Columbia and India as examples in support of his assertions. This chapter is followed by one on generalized resource scarcity: mitigating factors and detection.

The final section of the book is devoted to the economics of pollution control. After an overview on general pollution control, Tietenberg addresses air pollution. Specifically he discusses stationary-source and mobile-source pollution. The problem itself, policy toward, and economic and political assessment of, the air pollution problem are examined. The nature of water pollution problems, water pollution control policy and cost effectiveness of such policies are presented. The same treatment of toxic substances is also presented.

In a four chapter conclusion, Tietenberg considers the distributional effects of pollution control policy, the possibility for growth in a finite environment and a

re-examination of his prognostication models. This work is through and comprehensive. It is an examination from a bifurcated perspective; namely from the perspective of both economic theory and environmental awareness.