Abstract
In Chapter 4 it was argued that for an efficient allocation of resources energy prices should be related to their marginal social costs. In this chapter we consider one of the principal causes of the divergence of private from social costs in this sector of the economy. This is the external environmental costs associated with the production and use of energy. Some of these external costs are associated with the emissions of particular pollutants, such as sulphur dioxide and particulate matter, while others are associated with the loss of visual amenity, such as opencast (or strip) mining and overhead power lines. In addition some of these externalities are local in their effects while others involve transfrontier pollution.
This is a preview of subscription content, log in via an institution.
Preview
Unable to display preview. Download preview PDF.
Notes and References
L. B. Lave and E. Seskin, ‘Air Pollution and Human Health’, Science, vol. 169 (21 Aug 1970) pp. 723–31.
R. Wilson and W. J. Jones, Energy, Ecology and the Environment (New York, San Francisco and London: Academic Press, 1974) p. 188.
A. D. Bradshaw and M. J. Chadwick, The Restoration of Land (Oxford: Blackwell 1978) tables 2.5 and 2.6.
Garvey, Energy, Ecology and Economy (New York: Norton, 1972) p. 97.
C. Cicchetti and A. M. Freeman III, ‘The Trans-Alaska Pipeline: An Economic Analysis of Alternatives’, in A. C. Enthoven and A. M. Freeman III (eds), Pollution, Resources, and the Environment (New York: Norton, 1973).
U.S. Atomic Energy Commission, Reactor Safety Study, WASH-1400 (Washington, D.C.: Government Printing Office, 1974).
U.K. Atomic Energy Authority, Fourth AnnualReport 1957–58 (London: H.M.S.O., 1958) p. 9.
M. A. McKean, ‘Japan’, in D. R. Kelley (ed.), The Energy Crisis and the Environment (New York and London: Praeger, 1977) p. 173.
Royal Commission on Environmental Pollution, First Report, Cmnd 4585 (London: H.M.S.O., 1971).
See P. Chapman, Fuel’s Paradise: Energy Options for Britain (Harmondsworth: Penguin Books, 1975) chap. 6.
M. R. Dohan and P. F. Palmedo, ‘The Effect of Specific Energy Uses on Air Pollutant Emissions in New York City 1970–1985’, BNL-19064 (Brookhaven National Laboratory, Upton, N.J.: January 1974).
W. T. Mikolowksy et al., The Regional Impacts of Near Term Transportation Alternatives: A Case Study of Los Angeles (Santa Monica: The Rand Corporation, Report no. R-1524 — S.C.A.G., June 1974).
R. Coase, ‘The Problem of Social Cost’, Journal of Law and Economics, vol. 3 (1960) pp. 1–44.
T. H. Tietenberg, ‘On Taxation and the Control of Externalities: Comment’, American Economic Review (June 1974), and Royal Commission on Environmental Pollution, Fifth Report, Air Pollution Control: An Intergrated Approach, Cmnd 6371 (London: H.M.S.O., 1976) paras 35–40 and 337–41.
For a discussion of the informational requirements of standards versus taxes see P. Burrows, ‘Pricing versus Regulation for Environmental Protection’, in A. J. Culyer (ed.), Economic Policies and Social Goals (London: Martin Robertson, 1974).
Royal Commission on Environmental Pollution, Fifth Report, Air Pollution Control: An Integrated Approach, Cmnd 6371 (London: H.M.S.O., 1976). para. 53.
D. M. Fort et al., ‘Proposal for a Smog Tax’, reprinted in Tax Recommendations of the President, Hearings before the House Committee on Ways and Means, 91st Congress, 2nd Session, 1970, pp. 369–79. The account in the text is taken from A. V. Kneese, Economics and the Environment (Harmondsworth: Penguin Books, 1977) p. 215.
For a classification and description of the different types of environmental damage see K. G. Maler and R. E. Wyzga, Economic Measurement of Environmental Damage (Paris: O.E.C.D., 1976) chap. 4.
See J. R. Hicks, A Revision of Demand Theory (Oxford: Clarendon Press, 1956) chap. 8.
For a very useful discussion of these issues see D. W. Pearce, Valuing the Damage Costs of Environmental Pollution, Report to the U.K. Department of the Environment (London: Department of the Environment, 1976).
See, for example, R. W. Johnson and G. M. Brown Jr, Cleaning up Europe’s Waters (New York: Praeger, 1976).
Copyright information
© 1980 Michael G. Webb and Martin J. Ricketts
About this chapter
Cite this chapter
Webb, M.G., Ricketts, M.J. (1980). Energy and the Environment. In: The Economics of Energy. Palgrave, London. https://doi.org/10.1007/978-1-349-16323-6_5
Download citation
DOI: https://doi.org/10.1007/978-1-349-16323-6_5
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-24496-8
Online ISBN: 978-1-349-16323-6
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)