The Askoe meetings were an annual forum where leading economists and ecologists came together to discuss the myriad issues and challenges surrounding sustainable development. Organized by the Beijer Institute of Ecological Economics and held on the Island of Askoe in the Stockholm Archipelago, Sweden, the meetings facilitated a dialogue in which various players with differing perspectives could arrive at common conclusions and solutions that benefit us all.

This volume IS one of a number of pubhcatlOns to carry the results of the flfSt research programme of the Royal Swedish Academy of SCience's BelJer Institute The Instltute was formed m 1991 m order to promote mterdlsclplmary research between natural and social sClentlsts on the mterdependency between economic and ecological systems In Its first research programme, the BlOdlverslty Programme, the Instltute brought together a number of leadmg economists and ecologists to address the theoretlcal and pohcy Issues associated with the current high rates of blOdlVefSlty loss m such systems - whether the result of direct depletlOn, the destructlOn of habitat, or speclahsatlOn m agnculture, forestry and flshenes ThiS volume reports some of the more pohcy-onented work carned out under the programme 1 The broad aim of the programme IS to further our understandmg of the causes and consequences of blOdlverslty loss, and to Identlfy the optlOns for addressmg the problem The results have turned out to be surpnsmg to those who see blOdlverslty loss pnmarlly III terms of the eroslOn of the genetlc hbrary In vanous ways the work carned out under the programme has already begun to alter our perceptlOn of where the problem m blOdlverslty loss hes and what pohcy optlOns are aVailable to deal with It Indeed, the programme has provided a powerful set of arguments for reappraISIng not Just the econormc and ecologlcallmplicatlOns of blOdlverslty loss, but the whole case for development based on speCIalisatlOn of resource use

This book is a thoroughly revised text based on a report commissioned by the Swedish International Development Authority (SIDA). The financial grant from SIDA which made the work possible is hereby gratefully acknowledged. We gratefully accepted the offer from Kluwer Academic Publishers to revise the text. Hopefully, the text can be of interest to decision-makers, development programme personnel, teachers and the general public interested in how economics can contribute to better environmental decision-making. There are already many books on the market about environmental economics, some of them very good. What is special about this one? We do not claim to have obtained new results, but we have our own way of presenting the subject matter. In particular, we are of the opinion that policy failures are often overlooked as an obstacle to efficient environmental management. Although the main emphasis in this book is on project level analysis, it is essential that such analyses be linked to an understanding of the (dis)incentives for environmental improvements that general economic and particular environmental policies provide. Another essential feature of the book, although this is not unique, is the links provided between theory and empirical illustrations. We hope that this will illustrate to our readers the practical usefulness, but also the difficulties, of applying economics to environmental problems. In principle, this book can be read by anyone interested in the subject matter, without any formal education in economics. However, some background in microeconomic theory makes the reading easier.

The Asko meetings were an annual forum where leading economists and ecologists came together to discuss the myriad issues and challenges surrounding sustainable development. Organized by the Beijer Institute of Ecological Economics and held on the Island of Asko in the Stockholm Archipelago, Sweden, the meetings facilitated a dialogue in which various players with differing perspectives could arrive at common conclusions and solutions that benefit us all.

This book is the second edition of a text based on a report commissioned by the Swedish International Development Authority (SID A). The financial grant from SIDA which made the work possible is hereby gratefully acknowledged. There are already many books on the market about environmental economics, some of them very good. What is special about this one? We do not claim to have obtained new results, but we have our own way of presenting the subject matter. In particular, we are of the opinion that policy failures are often overlooked as an obstacle to efficient environmental management. Although the main emphasis in this book is on project level analysis, it is essential that such analyses be linked to an understanding of the (dis)incentives for environmental improvements that general economic and particular environmental policies provide. Another essential feature of the book, although this is not unique, is the links provided between theory and empirical illustrations. We hope that this will illustrate to our readers the practical usefulness, but also the difficulties, of applying economics to environmental problems. In particular we hope that the text can be of interest to decision-makers, development programme personnel, teachers and the general public interested in how economics can contribute to better environmental decision-making. In principle, this book can be read by anyone interested in the subject matter, without any formal education in economics. However, some background in microeconomic theory makes the reading easier.

Economists often assume that ecosystem and population dynamics are subject to convex, even linear processes. But research by ecosystem and population ecologists suggests that such processes are very often non-convex, for example a possible flip of the Gulf Stream due to fresh water intrusion from melting glaciers. This has dramatic implications for environmental and resource economics, since mistakes in management could prove more costly than imagined.

Economists often assume that ecosystem and population dynamics are subject to convex, even linear processes. But research by ecosystem and population ecologists suggests that such processes are very often non-convex, for example a possible flip of the Gulf Stream due to fresh water intrusion from melting glaciers. This has dramatic implications for environmental and resource economics, since mistakes in management could prove more costly than imagined.

Is knowledge an economic good? Which are the characteristics of the institutions regulating the production and diffusion of knowledge? Cumulation of knowledge is a key determinant of economic growth, but only recently knowledge has moved to the core of economic analysis. Recent literature also gives profound insights into events like scientific progress, artistic and craft development which have been rarely addressed as socio-economic institutions, being the domain of sociologists and historians rather than economists. This volume adopts a multidisciplinary approach to bring knowledge in the focus of attention, as a key economic issue.

This book is the second edition of a text based on a report commissioned by the Swedish International Development Authority (SID A). The financial grant from SIDA which made the work possible is hereby gratefully acknowledged. There are already many books on the market about environmental economics, some of them very good. What is special about this one? We do not claim to have obtained new results, but we have our own way of presenting the subject matter. In particular, we are of the opinion that policy failures are often overlooked as an obstacle to efficient environmental management. Although the main emphasis in this book is on project level analysis, it is essential that such analyses be linked to an understanding of the (dis)incentives for environmental improvements that general economic and particular environmental policies provide. Another essential feature of the book, although this is not unique, is the links provided between theory and empirical illustrations. We hope that this will illustrate to our readers the practical usefulness, but also the difficulties, of applying economics to environmental problems. In particular we hope that the text can be of interest to decision-makers, development programme personnel, teachers and the general public interested in how economics can contribute to better environmental decision-making. In principle, this book can be read by anyone interested in the subject matter, without any formal education in economics. However, some background in microeconomic theory makes the reading easier.

Transnational commons, cross-border areas without well-defined property rights, have long been ignored in 'official' development economics. This volume redresses the balance by adopting an environmental approach which stresses the importance of shared natural resources and the links between acute poverty and environmental degradation. The Economics of Transnational Commons draws together eminent contributors from fields as diverse as law, population studies, social anthropology, biological sciences, and economics, to present authoritative accounts that combine empirical case-studies with rigorous theoretical foundations. Despite the milti-disciplinary approach, the main focus of the articles is the same: that the reciprocal externalities and problems of free-riding created by any common resource are complicated in the case of transnational commons by difficulties in monitoring, enforcement, and unequal access to information. Often using theories of negotiation taken from game theory, the studies then suggest possible solutions, both at an institutional and educational level. In order to make these materials suitable for teaching purposes, the authors have been encouraged to survey their topics rather than present their most recent findings. A companion publication, The Environment and Emerging Development Issues Volumes 1-11 (edited by Dasgupta and Mahler), deals with national environmental issues.

These volumes present a set of authoritative studies of the role of environmental resources in the economic development process, written by leading scholars in a wide range of associated fields. Contributors address the problems connected with the management of local common property resources, such as soil, water, forests and their products, animals and fisheries, and supply both explanations of existing situations and policies for the future. To provide material that can be used in classroom teaching, the chapters are written as surveys rather than expositions of contributors' most recent work.