One of the basic issues of accounting is to augment, or extend the conventional net national product measure so as to obtain a better indicator of welfare. This book extends the usual analysis of social accounting by including technological change, externalities and uncertainty. This important new book analyses welfare measurement, sustainability and 'green accounting' within general equilibrium models. A large part of the book is devoted to welfare measurement in the presence of technological change and external effects which complicate 'green accounting' to a considerable extent. In addition to environmental externalities, the authors also discuss external effects arising from investments in human capital and their implications for welfare measurement. Other areas examined are welfare measurement under uncertainty and examples of cost-benefit analyses of environmental and other policies. The book will be required reading for graduate students and professional economists interested in macroeconomics, environmental and resource economics.

This comprehensive and accessible textbook addresses important relationships between economics and environmental policy, especially highlighting the role of taxation. It also connects environmental policy to social accounting by describing how measures of welfare and sustainable development depend on whether policies successfully internalize market failures. The authors discuss how the modern literature on environmental taxation and tradable permits has evolved. Environmental taxation is examined from a purely corrective perspective, and as part of a broader system of optimal taxation that reflects distributional objectives. Cost benefit rules of environmental policy reforms are also examined in various contexts. Key features include: ? Examination of optimal tax policy in static and dynamic general equilibrium models with environmental externalities? Examination of cost benefit rules for environmental policy reforms? Essential historical background to the modern literature on environmental policy? Discussion of measures of welfare and sustainable development? Environmental policy from a fiscal federalism perspective. This textbook will be essential reading for those studying environmental economics and environmental policy, working effectively as both an in-depth supplementary text in general courses on environmental economics and a strong main source for environmental policy courses.

This book cleverly integrates the research on welfare measurement and social accounting in imperfect market economies. In their previously acclaimed volume, Welfare Measurement, Sustainability and Green National Accounting, the authors focused on the external effects associated with environmental damage and analysed their role in the context of social accounting. This book adopts a much broader perspective by analysing a wide spectrum of resource allocation problems of real-world market economies. The authors' aim is to derive exact welfare measures in imperfect market economies and compare them with their counterparts in a first-best equilibrium. Using numerical analysis, they also attempt to make the leap from theory to practical application by measuring the empirical importance of market imperfections. Such analysis provides the tools for examining whether 'real life' approximations of the welfare contribution of external effects, such as information collected by using the willingness-to-pay method, actually capture true and accurate values. Finally, the authors address the theory of cost-benefit analysis, in terms of environmental and other public policies, in dynamic general equilibrium models. This book is an impressive investigation of the theory of social accounting, with particular emphasis on valuation problems facing imperfectly competitive markets. It will make challenging but highly rewarding reading for academics and researchers interested in environmental economics, welfare measurement, social accounting and green accounting.

Concerns about natural resource scarcity, together with the increased awareness of environmental problems, has led to widespread interest in green accounting, which attempts to extend the standard national accounts to include the yields from natural and environmental resources. For this volume, Professors Lofgren and Li have selected the classic articles in this rapidly growing area, with particular reference to sustainability. They have also written an authoritative new introduction which offers a comprehensive overview of the literature both from a historical and a formal theoretical perspective. This volume will be an invaluable reference source for scholars and practitioners seeking an in-depth understanding of the main issues in this important field.

Karl-Goran Maler's work has been a mainstay of the frontiers of environmental economics for more than three decades. This outstanding book, in his honour, assembles some of the best minds in the economics profession to confront and resolve many of the problems affecting the husbandry of our national environments. This book investigates many of the recent advances in economics, in terms of the management of natural resources and environments. The authors also concentrate on other important issues such as control theory for non-convex economic problems, duopoly theory, game theory, local public finance, patent races and population control. In addition, they investigate the difficulties involved in constructing environmental agreements, and detail the potential benefits of marrying together the disciplines of ecology and economics. As a whole, the book effectively illustrates both the power and limitations of economics to shed light on many of today's pressing environmental issues. The diverse range of topics and exceptional quality of the authors - including contributions by Nobel Laureates Kenneth J. Arrow and Robert M. Solow - will make this book essential reading for academics and advanced level students of environmental and resource economics, as well as natural scientists with an interest in resource allocation issues.

This comprehensive and accessible textbook addresses important relationships between economics and environmental policy, especially highlighting the role of taxation. It also connects environmental policy to social accounting by describing how measures of welfare and sustainable development depend on whether policies successfully internalize market failures. The authors discuss how the modern literature on environmental taxation and tradable permits has evolved. Environmental taxation is examined from a purely corrective perspective, and as part of a broader system of optimal taxation that reflects distributional objectives. Cost benefit rules of environmental policy reforms are also examined in various contexts. Key features include: ? Examination of optimal tax policy in static and dynamic general equilibrium models with environmental externalities? Examination of cost benefit rules for environmental policy reforms? Essential historical background to the modern literature on environmental policy? Discussion of measures of welfare and sustainable development? Environmental policy from a fiscal federalism perspective. This textbook will be essential reading for those studying environmental economics and environmental policy, working effectively as both an in-depth supplementary text in general courses on environmental economics and a strong main source for environmental policy courses.

`In a world that is possibly threatened by catastrophic climate changes it is more important than ever to augment and modify current systems of national accounts so as to measure welfare in a dynamic context, i.e. move towards social accounting. This outstanding text written by leading names in the field covers all essential aspects of dynamic welfare theory and also goes beyond pure theory by providing discussion of how to go from theory to application.' - Per-Olov Johansson, Stockholm School of Economics, Sweden This concise Handbook examines welfare measurement problems in a dynamic economy, focusing on the welfare-economic foundations for social accounting. With environmental accounting becoming an increasingly important area of research, this timely Handbook assesses the ways in which the system of national accounts should be modified to accurately reflect the social value of economic activity, and how the comprehensive (or `green') net national product ought to be measured. It also addresses the principles for measuring welfare in a community at a given point in time, cost-benefit analysis for measuring welfare change and the principles for measuring sustainability, all of which have played important roles in the development of theories of social accounting. Covering a broad range of topics on environmental accounting such as endogenous risk and social accounting, money metrics welfare measures, public sector aspects of social accounting, dynamic cost-benefit analysis, and genuine saving, this unique Handbook will be a stimulating read for researchers and graduate students focusing on welfare economics and environmental economics.

`In a world that is possibly threatened by catastrophic climate changes it is more important than ever to augment and modify current systems of national accounts so as to measure welfare in a dynamic context, i.e. move towards social accounting. This outstanding text written by leading names in the field covers all essential aspects of dynamic welfare theory and also goes beyond pure theory by providing discussion of how to go from theory to application.' - Per-Olov Johansson, Stockholm School of Economics, Sweden This concise Handbook examines welfare measurement problems in a dynamic economy, focusing on the welfare-economic foundations for social accounting. With environmental accounting becoming an increasingly important area of research, this timely Handbook assesses the ways in which the system of national accounts should be modified to accurately reflect the social value of economic activity, and how the comprehensive (or `green') net national product ought to be measured. It also addresses the principles for measuring welfare in a community at a given point in time, cost-benefit analysis for measuring welfare change and the principles for measuring sustainability, all of which have played important roles in the development of theories of social accounting. Covering a broad range of topics on environmental accounting such as endogenous risk and social accounting, money metrics welfare measures, public sector aspects of social accounting, dynamic cost-benefit analysis, and genuine saving, this unique Handbook will be a stimulating read for researchers and graduate students focusing on welfare economics and environmental economics.