(Woods Hole Oceanographic Institution, 1986-01)
Edwards, Steven F.
While the economic impacts of resource use pervade discussions of coastal
zone management, most discourses tend to be ill-defined and incomplete, and to
lack a solid basis in economic theory. This primer was written to eliminate
this confusion for those non-economists who seek insight into economic thought
and into how economic analysis can contribute to coastal zone management. The
first half of the report introduces readers to basic concepts and analytical
methods in microeconomics, public finance, and environmental and resource
economics. The foundation for monetary valuations becomes apparent as the
concepts are explained. The realization that neither markets nor prices are
required for economic valuations is an important result of the explication.
Consequently, one can assess losses associated with pollution, reduced access,
and so on in units that are commensurable with market-oriented development.
The second half of the primer inculcates these basic concepts and methods
through (1) critiques of several stereotypical, pseudoeconomic arguments, (2)
a case study of the benefits of protecting water quality for recreation, and
(3) a benefit-cost analysis of a hypothetical acquisition program that is
intended to protect groundwater quality, to protect opportunities for aquatic
recreation, and to reduce the growth in traffic.
