'Extending economic models to include environmental emissions and environmental policy is now commonplace. Yet, the linking is often ad hoc and based on peculiar assumptions. In this book, Rob Dellink shows how emissions and emission reduction policies for five different environmental issues can be included in a forward-looking computable general equilibrium model, building emissions into production and consumption functions. At the technical level the book is superb and stands out for its exact specification of how this is done.' - Richard S.J. Tol, Hamburg University, Germany, Free University Amsterdam, The Netherlands and Carnegie Mellon University, US This important new book enhances our understanding of the dynamic interactions between economic activity, economic growth, pollution abatement and environmental policy. It addresses one main policy problem: how can the direct and indirect costs of environmental policy for multiple pollutants be properly assessed in an applied model?

Modeling Environmental Policy demonstrates the link between physical models of the environment and policy analysis in support of policy making. Each chapter addresses an environmental policy issue using a quantitative modeling approach. The volume addresses three general areas of environmental policy - non-point source pollution in the agricultural sector, pollution generated in the extractive industries, and transboundary pollutants from burning fossil fuels. The book concludes by discussing the modeling efforts and the use of mathematical models in general.

A Simple Model of Electric Power Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Power flow equations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Social welfare action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 A Market Mechanism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 An efficient trading rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Competitive equilibrium and social optimum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 A Dynamic Trading Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 An Illustrative Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Alternative Implementation Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Chapter 5: The Berlin Mandate: The Design ofCost-Effictive Mitigation Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 The Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Future Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 The Costs of Alternative Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Some Final Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Chapter 6: Some Implications of Improved CO] Emissions Control Technology in The Context of Global Climate Change . . . . . . . . . . . . . . . . . . . . 85 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 The CET A-R Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Economic system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Climate system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Uncertain losses from temperature rise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Technology Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Implications of Loss Probability and Technology Assumptions . . . . . . . . . . . . . . . . . . . 89 Improved Technology and the Value of Infonnation About Damage . . . . . . . . . . . 94 Value of Information about Technology and Benefits of Improved Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Sununary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Chapter 7: Determining an Optimal Afforestation Policy: A Cost-Benefit Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Introduction - Motivation and afforestation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Afforesting and halting deforestation: domestic verses global solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l 01 Research Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l 02 Integrated assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Time horizon and discounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Carbon sequestration time path . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l 03 vi Interactions with other markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Structural Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l 04 Traditional timberland module . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Afforestation module . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Timber market module . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l 08 Sequestration calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 bjective function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Regionalization and Model Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Southern submodel data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Pacific submodel data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

International experts provide a comprehensive picture of the principles, concepts and methods that are applicable to problems originating from the interaction between the living/non-living environment and mankind. Both the analysis of such problems and the way solutions to environmental problems may work in specific societal contexts are addressed. Disciplinary approaches are discussed but there is a focus on multi- and interdisciplinary methods. A large number of practical examples and case studies are presented. There is special emphasis on modelling and integrated assessment. This book is different because it stresses the societal, cultural and historical dimensions of environmental problems. The main objective is to improve the ability to analyse and conceptualise environmental problems in context and to make readers aware of the value and scope of different methods. Ideal as a course text for students, this book will also be of interest to researchers and consultants in the environmental sciences.

First Published in 2004. Routledge is an imprint of Taylor & Francis, an informa company.

This book is based upon contributions to a Scandinavian conference on Transport, Agriculture and the Environment in a Regional and National Development Per spective: Quantitative and Modelling Approaches, organised by AKF, the Institute of Local Government Studies, Denmark, which was held on the Danish island of Bornholm in December 1993. The chapters represent leading edge research in Scandinavia at the end of 1993 into modelling relationships between the economy and the environment, embracing both regional and sectoral perspectives. The publication of this volume will hopefully contribute to dissemination of knowledge about the very active Scandinavian research tradition in this field, a research tradition which is related to a long-standing engagement of Scandinavian countries with environmental issues. The contributors come from Denmark, Norway and Sweden and the collection is prefaced by two chapters from well-known Dutch researchers, traditionally re garded by Scandinavians as close neighbours to the Scandinavian modelling tradition. The support of S0M (Society, Economy and Environment), an open research centre financed by the Danish Environmental Research Programme, and of AKF in the organisation of the original conference and the preparation of this book is gratefully acknowledged. It was with great sadness that the editors learned of the death of one of the contri butors, Poul Erik Stryg, during the preparation of the book.

The volume contains papers presented at a conference "On the International Dimension of Environmental Policy". It deals with two issues: *international environmental agreements; *environmental policies in open economies. Both issues are hot topics. The debate on how to cope with global climate change has become increasingly heated and controversial, and the relationship between trade and the environment is on the WTO agenda. The book contains review papers in which leading scholars in the field summarise the state of the art and original research extending the state of the art. Most of the papers are theoretically oriented, but some papers also present empirical results, using new econometric methods and new data. The book contains material for those students of economics and researchers who wish to deepen their knowledge in the area of International Environmental Economics, but also for those who endeavour to break new ground in this important field of research.

This book describes the environmental problems associated with agriculture, particularly the use of pesticides and chemical fertilizers and the disposal of animal waste. These have become major policy issues in many countries, with the main polluting effect being on water quality. As with other types of pollution, significant reductions in agriculture's contribution to water pollution requires the application of either enforceable regulatory approaches or changes in the economic environment, so that farmers adopt environmentally-friendly production practices. Providing a review and guide to the policy options and their economic administrative and political merits, the reader can develop an understanding of these options and their merits in the emerging policy context. The principal focus is on the developed world, particularly North America and Europe. The book is aimed at advanced students, researchers and professionals in agricultural economics and policy, and environmental and pollution sciences.

This book Innovations and the Environment aims to review the state of knowledge and to provide an empirical basis for the development and use of new technologies, products and services to reduce the impact of human activities on environmental quality. This is at the core of the debate on economics and the environment. The message is optimistic. Advances in thinking and actions make it possible to maintain high environmental quality at reasonable costs, sometimes even having a positive effect on corporate results. The progress is by no means automatic. Risk taking by entrepreneurs, managers and policy makers is necessary. The idea to write a book about innovations and the environment was born during discussions with Professor Han Brezet who was convinced of the importance of this subject for engineering students. This is because he has found many stories about the successes and failures of environmental technologies and even more on the impact of technologies on environmental qualities, but no reviews on technology and the mindset of entrepreneurship to explain the forces that drive innovations for sustainable development.