Economists have a good understanding of intra-economic interdependence and a mature methodology of modeling it. Ecologists focus on the complex and sensitive interactions of species in ecosystems. This paper's objective is to suggest a new micro-foundation of ecosystem analysis based on economic...

The first part of the paper focusses on the implications of optimal intertemporal pollution control under alternative hypotheses about the assimilative capacity of environmental resources. Then it is shown how the optimal intertemporal allocation could be achieved by an emission tax policy. As...

In their seminal paper on production, consumption and externalities (AER, 1969), Ayres and Kneese initiated a research program on comprehensive analysis and management of residuals and pollution based on two pillars: the study of the residuals-generating materials flow subject to the mass...

In a dynamic general equilibrium model we explictly consider the relationship between the product attributes 'durability' and 'recyclability'. Both efficiency and sustainability aspects are taken into account. It turns out (a) that durability may be inefficient even in a perfectly competitive...

Under the assumption of imperfect competition in a durable good industry, the present paper investigates the efficient regulation of solid waste which causes environmental damage at the end of the product's life. It turns out that the second-best waste tax falls short of the marginal...

Environmental economics passed its age of infancy. It grew rapidly over the last decades and established itself as a discipline based on the powerful economic paradigm and reaching beyond it to capture important economy-environment interactions. The view offered here on the future of...

Using a general equilibrium model where material is first extracted, then used for producing a consumption good, recycled and finally treated to reduce environmental damage, we study efficiency-restoring policies, when one or more of the constituent markets are inactive. The material is modeled...

This paper deals with two different types of irreversibility: Pollution irreversibility occurs if the stock of pollution cannot be reduced (any more) by nature's assimilative capacity; characteristics irreversibility occurs when some characteristic of the environmental resource is irreversibly...

Optimal intertemporal pollution control with irreversibilities is investigated under conditions of certainty and uncertainty. When the assimilative capacity is positive, irreversible pollution levels are shown to be optimal only if the social time preference is sufficiently high. The...