Hostname: page-component-77c89778f8-sh8wx Total loading time: 0 Render date: 2024-07-18T04:37:21.075Z Has data issue: false hasContentIssue false

A Theoretical Framework for Viewing Pollution Problems

Published online by Cambridge University Press:  28 April 2015

Max R. Langham*
Affiliation:
Agricultural Economics at the University of Florida

Extract

In the 1960's, we developed a strong public conscience about the environment. The 1970's will reveal a great deal about our ability to better understand and manage the environment in socially acceptable ways. This task will require both theories and measurement techniques to empirically verify them. A welfare theory (based largely on Paretian welfare economics) states that we can say one system is preferable to another if the system makes at least one person better off and no one worse off. Most alternative systems in the real world, including those available to resolve pollution conflicts, do not meet this criterion. A change in the system normally makes someone worse off. Thus, Paretian, or the “new,” welfare economics, is not really useful in making most policy decisions. The problem is compounded, because often we do not know how to measure the real effects of pollution on parties involved in and influenced by pollution. This later problem is aggravated by the fact that we have done very little to systematically record observations on pollution processes.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 1971

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1.Buchanan, James M. and Stubblebine, W. C., “Externality,” Economica, 29:371384, Nov. 1962.CrossRefGoogle Scholar
2.Davis, Otto A. and Whinston, A. B., “Externalities, Welfare, and the Theory of Games,” J. Pol. Economy, 70:241262, June 1962.CrossRefGoogle Scholar
3.Davis, Otto A. and Whinston, A. B., “On Externalities, Information and the Government-Assisted Invisible Hand,” Economica, 33:303318, Aug. 1966.CrossRefGoogle Scholar
4.Davis, Otto A. and Whinston, A. B., “On the Distinction Between Public and Private Goods,” Amer. Econ. Rev., 57:360373, May 1967.Google Scholar
5.Demsetz, Harold, “The Exchange and Enforcement of Property Rights,”J. Law and Econ., 7:1126, Oct. 1964.CrossRefGoogle Scholar
6.Edwards, W. F., “Economic Externalities in the Agricultural Use of Pesticides and an Evaluation of Alternative Policies,” unpublished Ph.D. thesis, University of Florida, 1969.Google Scholar
7.Edwards, W. F. and Langham, M. R., Pesticides, Public Welfare and Policy, research manuscript in review by Resources for the Future, Inc., 241 pp. Aug. 1970.Google Scholar
8.Griliches, Zvi, “Research Costs and Social Returns: Hybrid Corn and Related Innovations,”J. Pol. Economy, 66:419431, Oct. 1958.CrossRefGoogle Scholar
9.Hicks, J. R., “The Rehabilitation of Consumer's Surplus,” Rev. Econ. Studies, 9:108–16, 1941.CrossRefGoogle Scholar
10.Hotelling, H., “The General Welfare in Relation to Problems of Taxation and of Railway and Utility Rates,” Econometrica, 6:242–69, 1938.CrossRefGoogle Scholar
11.Hurwicz, Leonid, “On the Concept and Possibility of Informational Decentralization,” Amer. Econ. Rev., 59:513524, May 1969.Google Scholar
12.Kneese, Allen V., The Economics of Regional Water Quality Management, Baltimore: The Johns Hopkins Press, 1964.Google Scholar
13.Langham, Max R., ‘Toward Improving Performance of a System through Participatory Decisions,” unpublished paper, June 1969.Google Scholar
14.Marshall, Alfred, Principles of Economics, 8th ed., London: Macmillan and Company, 1938.Google Scholar
15.Nerlove, Marc, The Dynamics of Supply: Estimation of Farmer's Response to Price, Baltimore: The Johns Hopkins Press, 1958.Google Scholar
16.Prosser, William L., Handbook on the Law of Torts, 3rd ed., St. Paul: West Publishing Co., 1964.Google Scholar
17.Samuelson, Paul A., Foundations of Economic Analysis, Cambridge: Harvard University Press, 1947.Google Scholar
18.Tintner, G. and Patel, M., “Evaluation of Indian Fertilizer Projects: An Application of Consumer's and Producer's Surplus,”J. Farm Econ., 48:704710, Aug. 1966.CrossRefGoogle Scholar
19.Wallace, T. D., “Measures of Social Costs of Agricultural Programs,” J. Farm Econ., 44:580594, May 1962.CrossRefGoogle Scholar
20.Wellisz, Stanislaw, “On External Diseconomies and the Government Assisted Invisible Hand,” Economica, 31:345362, Nov. 1964.CrossRefGoogle Scholar