Environmental Economics and Management (Routledge Revivals)

9

Environmental Costs, Irreversibility and Uncertainty

 

 

9.1 INTRODUCTION

In this chapter we will concentrate on the possible environmental damage that might occur when certain areas are developed for industrial purposes. A well known example is the regulation of water courses located in recreational areas. Environmental costs related to such regulation of areas reveal several characteristics:

(1) Costs are a result of the alternative use that could be made of these areas either being reduced in scope and/or in quality.

(2) Common areas are involved. The goods and service supplies which are reduced either in scope or in quality in this way acquire the nature of common goods. In most cases no prices exist for these goods, and in any case ...