Environmental Economics

From the Answer Desk: Should big cars pay higher gas prices?

Rashelle J.M. writes: I think that the gas problem is mostly because people are driving larger vehicles. This conveys to me how greedy people are! I also see very conservative people who are riding scooters to work! People who conserve should be rewarded! I myself drive a 4 cylinder car. Now, with that said, I propose that if people buy bigger vehicles that they pay bigger prices at the pumps. The gas pumps are computerized, so, why can't gas be priced by size of engines?

From the Answer Desk: On Sustainability and Efficiency

Janet Batista asks:

Most economists seem to be fixated on "growth." Is it possible to have an environmentally sustainable economy, stable population, market prices that incorporate environmental costs and still satisfy economists need to see growth?

Great question.  I'll give an answer a try...

From the Answer Desk: More nonsense and some sense...

The Answer Desk is back...later than ever.   Enjoy.

From the Answer Desk: A Pot Pourri of Nonsense

We started the Env-Econ Answer Desk with the intention of answering questions.  Well, we've had a bunch of questions submitted over the past couple of months and between classes and other duties--you know from my PAYING job--I haven't answered very many.  So, in the spirit of Mailbags everywhere, here are a bunch of the questions with very few answers...hopefully someone out there will be able to answer some of these.

From the Answer Desk: U.S. Agricultural Subsidies and World Environmental Quality

It's been a while since we posted an Answer Desk response.  Sometimes it's tough to find just the right expert with the time to respond.  This time, we're happy to say we found just the right expert.

My question for you: 1) Do you believe large agricultural subsidies actually prevent environmental degradation overseas? 2) Would phasing out subsidies mitigate some of these ill effects and prevent a recession, if they were phased out over a number of years? 3) Do you think the US will ever eliminate subsidies given the huge farm lobby and protectionist trade practices? [full question is below]

To answer, we called on Professor Bruce Gardner of the Department of Agricultural and Resource Economics at the University of Maryland.  Professor Gardner is a University Distinguished Professor, a former president of the American Agricultural Economics Association and former Assistant Secretary for Economics at the U.S. Department of Agriculture.  Needless to say, Professor Gardner knows a little about U.S. agricultural policy.

From the Answer Desk: Steps in CBA

Some time ago a question was submitted to the “Answer Desk” section of this blog on what the steps in cost-benefit analysis (CBA) are.  Let me try to take a belated and brief crack at this, with the caveat that entire volumes have been written on the subject.  I will primarily try to give some insight on what the steps are in theory and why they are difficult in practice, and close with a comment on how CBA is conducted in practice. 

ENV-ECON link on Wikipedia

A link to Gernot Wagner's from the answer desk: green GDP post has appeared at the end of the Wikipedia entry on Green GDP:

Further reading with a brief explanation of Green GDP.

Cool.

Note: In answer to the obvious question: No, I didn't edit the Wiki to self-promote ENV-ECON. And Tim is on vacation. If he did it, he's in big trouble with the powers that be.

From the Answer Desk: What are oil futures?

When we learn that oil futures are $60 a barrel, what does that really mean? Who pays the sixty dollars to whom, and when?