Environmental policy and the theory of second best
- Publisher:
- Economic Society of Australia
- Publication Type:
- Journal Article
- Citation:
- Economic Papers, 1995, 14 (4), pp. 1 - 15
- Issue Date:
- 1995-01
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Over the past two decades there has been growing interest in environmental policy. Lobbying by conservationists and growing community concern over pollution and the degradation of the natural environment have stimulated governments to address problems of externalities more seriously. In this policy debate the views of economists are becoming increasingly prominent. There is little doubt that economics has an important contribution to make in environmental policy, however the dominant economists' view represents quite a restricted subset of the relevant economic theory.
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