annotated bibliography of fisheries economics literature - Office of ...

Chapter 3 in The Theory of Environmental Policy. Prentice Hall,
Englewood Cliffs, NJ.
Technological and pecuniary externalities and public and private
externalities are defined and discussed in this chapter. Solutions such as
taxes equal to the marginal social damage are discussed.
Baumol, William J. and Wallace E. Oates (1975). "Introduction to Part
2." Chapter 9 in The Theory of Environmental Policy. Prentice
Hall, Englewood Cliffs, NJ.
An introduction to welfare theory applied to practical problems in
environmental policy.
Baumol, William J. and Wallace E. Oates (1975). "Efficiency Without
Optimality: The Charges and Standards Approach." Chapter 10 in
The Theory of Environmental Policy. Prentice Hall, Englewood
Cliffs, NJ.
This chapter presents a proposal for a feasible tax-subsidy program. A
practical and effective procedure for the protection of the environment is
suggested; the use of pollution charges to implement a predetermined set of
standards for environmental quality. Some degree of arbitrariness in the
design of such standards is inevitable. And in agreeing to such a procedure,
one gives up any attempt to reach any true social optimum. Yet this proposal,
that is essentially a "satisficing" approach to the problem, can be shown to
offer some significant optimality properties. Aside from the administrative
savings made possible by avoidance of central direction and direct controls,
we will show that the proposed procedures, properly designed and implemented,
can lead to the attainment of the selected standards and that in appropriate
circumstances, they can do so at something approximating minimum cost to
society.
Baumol, William J. and Wallace E. Oates (1975). "Stochastic Influences,
Direct Controls, and Taxes." Chapter 11 in The Theory of
Environmental Policy. Prentice Hall, Englewood Cliffs, NJ.
Chapter 11 suggests that direct controls can be a useful supplement to a
system of charges for the continuing maintenance of acceptable environmental
conditions. Their usefulness arises from the inflexibility of tax rates and
the comparative ease with which certain types of direct controls can be
instituted, policed, and removed. The problem is that the state of
environmental quality at any time depends not only on the level of emissions
but on such essentially stochastic influences as wind velocity and rainfall,
that determine the rapidity of the dispersion of accumulated pollutants. As a
result, we can expect occasional environmental crises that can be predicted
only a short time before they occur. It would be too costly to society to
keep tax rates sufficiently high to prevent such emergencies at all times.
Instead, it may be less expensive in such cases to make temporary use of
direct controls, despite their static inefficiency. The chapter ends with the
description of a nonlinear programming model that illustrates the logic of the
design of an optimal mixed program.
Baumol, William J. and Wallace E. Oates (1975). "Taxes vs. Subsidies: A
Partial Analysis." Chapter 12 in The Theory of Environmental
Policy. Prentice Hall, Englewood Cliffs, NJ.
Chapter 12 examines the use of subsidies as a reward for decreased
damage by those who generate the externalities. First, we describe formally
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