ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc. C H A P T E R 20 ENVIRONMENT, GROWTH, AND DEVELOPMENT

ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc. FIGURE 20.1 Effect of a shift in demand and supply/marginal cost for environmental quality. AB, base demand for environmental quality; A′B′, demand for environmental quality with increased income, modest income effect; A″B″, demand for environmental quality with increased income, large income effect; CD, base supply of environmental quality; C′D′, supply of environmental quality, higher income; E, base provision of environmental quality; F, environmental quality, modest income effect; G, environmental quality, high income effect; H, environmental quality, increased income, no supply effect.

ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc. FIGURE 20.2 Relationship between per capita income and access to safe water. (From Shafik, 1994.)

ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc. FIGURE 20.3 Relationship between per capita GDP and smoke concentrations in cities. Circles represent the mean value of concentration median over an interval with the diameter proportional to number of data points. Line is the best statistical fit to data. (From Grossman and Krueger, 1995, p. 363.)

ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc. FIGURE 20.5 Sectoral multifactor productivity in United States with and with out adjustment for use of environment. (a) Electricity (1970 = 100); (b) agriculture (1977 = 100). Solid line accounts for use of environment; broken line omits use of environment. (From Repetto, 1996, pp. 27, 41.)