By Nathaniel O. Keohane, Sheila M. Olmstead
- the merits and prices of environmental protection
- markets and marketplace failure
- natural assets as capital assets
- sustainability and monetary improvement
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Additional info for Markets and the Environment
Two were linked to reductions in the main adverse human health effects from lead: retardation of cognitive and physiological development in children, and exacerbation of high blood pressure in adult males. A third benefit was a reduction in emissions of other pollutants from cars, since burning leaded gasoline destroyed the effectiveness of catalytic converters. The final benefit was lower costs of engine maintenance and related increases in fuel economy. Meanwhile, the primary costs of phasing out leaded gasoline were the costs of installing new equipment at refineries and of producing alternative additives to boost octane levels.
Let’s return to the example of open space preservation. Some people would be willing to pay for open space because they are eager to visit it—to take walks in the woods, or look for birds in a wetland. Other people without current plans to visit the area might nonetheless be willing to pay something to preserve it now, in order to have the option to use it in the future. Still others might not plan on using it themselves, but would want to preserve it to pass on to their children or grandchildren.
Let’s start with an example. Suppose a parcel of open space near where you live—a wetland or a woodland or a beachfront site— is up for sale, and likely to be converted into a housing development. How would you think about your own value for preserving the open space? It might seem self-evident that the value from open space is higher than the value from development. But of course that might not be so obvious to the developer, or the people who would like to buy houses in the new development, or to other members of the town who care less about the open space than the influx of new residents and the addition to the tax base.
Markets and the Environment by Nathaniel O. Keohane, Sheila M. Olmstead