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EVALUATION OF ECONOMIC BENEFITS OF RESOURCE CONSERVATION
Citation:
Anderson, R. EVALUATION OF ECONOMIC BENEFITS OF RESOURCE CONSERVATION. U.S. Environmental Protection Agency, Washington, D.C., EPA/600/5-78/015.
Description:
The forces that determine prices of non-renewable natural resources are an important consideration in an evaluation of the social desirability of conservation through recycling. If prevailing market prices accord conservation benefits a value less than their true value to society, the prices are suboptimal and the solution may require governmental support of resource recovery and recycling. A comprehensive review of the literature on natural resource economics reveals that numerous external forces can cause divergencies between the socially optimal prices and the prices that are actually determined in the market place. The forces act in varying directions and with varying intensities over time. It is, however, difficult to establish with any degree of precision the magnitude or even the direction of bias given to the prices acting on supply and demand. Moreover, the socially optimal level of resource conservation is likely to be viewed differently by individuals of different generations.