Part Six is an extension of Part Four. It primarily covers topics relating to the economics of the natural environment with specific reference to the use of the environment for the disposal of waste products from human activities. The primary issue here is public policy. Theories are discussed to the extent that they are relevant to the understanding of environmental policy issues.
Part VI is composed of six chapters (Chapters 10-15). Chapter 10 develops theoretical models and economic conditions that can be used as a guide to control environmental pollution. In Chapters 11 and 12 a number of pollution control policy instruments are thoroughly discussed and evaluated. Chapter 13 focuses on pollution problems with transboundary and global dimensions; more specifically, acid rain, the depletion of ozone and global warming. Chapters 14 and 15 deal with economic valuation of the environment. Some of the key concepts and issues addressed in these two chapters include the various techniques used to measure environmental damage (benefits), cost-benefit analysis, time preference, discount rate and intergenerational equity.
The chapters in Part Six, together with Chapter 5, cover topics normally included in standard texts on “environmental economics.”