CONTENTS Preface 5 List of Tables 22 List of Figures 24 List of Boxes 26 PART 1 NATURAL RESOURCES AND ENVIRONMENTAL ECONOMICS 1. Introduction to Natural Resources and Environmental Economics 29 Introduction 29 Emergence of Natural Resources and Environmental Economics 30 Ecological Economics 32 Fundamental Theories 32 Fundamental Features in the Economic Approach to Natural Resources and Environmental Economics 33 2. Natural Resources: Classification and Allocation 36 Introduction 36 Depletable and Renewable Resources 36 Efficient Inter-temporal Allocation 39 Renewable Resources 42 Conclusion 48 3. Environment and Welfare Economics 50 Introduction 50 Economic Efficiency 50 Efficient Allocation in a Market Economy 53 Market Failure and Natural Resources 54 Property Rights, Common Property Resources and Environmental Resources 58 Cost-Benefit Analysis 59 Conclusion 61 4. Economics of Pollution Control 63 Introduction 63 A Pollutant Taxonomy 63 Efficient Allocation of Pollution 65 Efficient Policy Responses 69 Conclusion 76 5. Economic Development and the Environment 77 Introduction 77 View of the 'Limits to Growth' 77 Economic Growth and Environment: The Environment Kuznets Curve 79 Population Growth and the Environment 83 Sustainable Development 86 Environmental Accounting: The UNSTAT Satellite Accounting 89 Conclusion 90 6. Environmental Policies 92 Introduction 92 Rationale for Policy Instruments: Lessons from East Asia and Central America 93 Strategies 96 Policy Choices 100 International Environmental Cooperation 102 Conclusion 103 7. Valuing the Environment 105 Introduction 105 Dimension of Value 105 Environmental Cost-Benefit Analysis 106 Environmental Valuation Techniques 107 Environmental Valuation, Ethics and Social Choice 114 Conclusion 115 PART 2 : AGRICULTURAL ECONOMICS 8. Introduction to Agricultural Economics 119 Introduction 119 Basic Skills of the Agricultural Economists 120 Food and Fibre Industry 121 Choice Making and Opportunity Cost 122 9. Role of Agriculture in Economic Development124 Introduction 124 Dual Sector Models 125 Agricultural Price and Income Policies 126 Agriculture's Contribution to Economic Growth127 Agriculture as a Declining Industry 129 Alternative Organizations of Agriculture 130 Economic Instability and Agriculture 131 Importance of Agriculture 132 Firms in Agriculture and Other Industries 134 Conclusion 136 10. Farm Production Decisions 137 Introduction 137 Production Function 137 Cobb-Douglas Production Function 139 Irrational Production in Agriculture 140 Application of Input-Output Analysis 141 Application of Cost-Functions 142 Family Farm Model 144 Farm Output and Input Pricing 148 Analysis of Farm Programmes: Direct Payment Programme 150 Product Choices and Production Possibilities 151 Farm Organization and Budgets 154 Land Tenure Arrangements 156 Supply of Individual Farm Products 157 Conclusion 159 11. Land Economics and Land Utilization 160 Introduction 160 Origin and Development of Land Economics 161 Methodological Orientation in Land Economics 162 Land Utilization 163 Distribution of Population in Relation to Land Resources 165 Land in Economic Growth 167 Demand for Land and Competition 167 Urbanization and Land Uses 169 Model of Transformation of Agricultural Land (Rural-Urban Fringe Model) 170 Conclusion 172 12. Agricultural Policy 174 Introduction 174 Beliefs and Values Underlying Agricultural Policy176 Goals of Agricultural Policy 177 Economic Organization of Agriculture 179 Economic Transformation of Agriculture 180 Characteristics Important for Policy 181 Market for Policy Analysis 183 Supply and Demand for Policy Analysis 184 Government Intervention 186 Rationale for Government Intervention 188 Conclusion188 13. Food Production and Security 190 Introduction 190 Economic Development and Food Supply 191 Patterns of Growth in Food Production 192 Incidence of Hunger 194 International Linkages 196 Food Security Challenges in the World 197 Food Needs and the Developing World 198 Food Marketing 200 Approaches to the Study of Food Marketing 201 Food Marketing Bill 202 Food Market Levels 203 Marketing Functions 205 Conclusion 206 14. World Trade and Agriculture 208 Introduction 208 Exports and Imports of Farm Commodities: Demand for Exports and Imports 208 Elasticity 210 Move Towards Trade Liberalization 211 Basis of Trade 212 Trade Model 213 Gains from Trade 214 Restraints to Trade 215 Trade Agreements 216 Balance of Payments 217 Conclusion 218 PART 3 : RURAL DEVELOPMENT 15. Introduction to Rural Development 221 Introduction 221 Basic Elements of Rural Development 223 Growth versus Development 224 Expectations of Rural Societies and the Concept of Development 225 Rural Development and Rural Change 226 Important Dilemmas in Rural Development 226 16. Basic Theories Underlying Rural Development 232 Introduction 232 The Modernization Theory 233 The Dependency Theory of the Marxist School 235 Rosenstein-Rodan's Theory of the 'Big Push' 236 Leibenstein's 'Critical Minimum Effort Thesis' 238 Lewis' Model of Economic Development with Unlimited Supplies of Labour 239 Gunnar Myrdal's Thesis of 'Spread and Backwash Effects' 242 The Human Capital Model of Development 243 Gandhian Model of Rural Development 244 Rural Development Theories from Other Social Sciences 245 Conclusion 247 17. Measures of Rural Development 248 Introduction248 Measures of the Level of Rural Development 249 f Measures of Distribution of Income 255 Measures of Rural Poverty . 253 , Conclusion 261 j 18. Dynamics of Demography and Rural I Development 263 Introduction 263 Population and Rural Development 263 The Theory of Demographic Transition 265 Rural-Urban Migration 268 Conclusion 274 19. Agricultural Transformation and Rural Development 275 Introduction 275 Structure of Agrarian Systems 277 Peasant Agriculture in Latin America, Asia and Africa 279 Role of Women in Agrarian Development 287 Towards a Strategy of Agriculture and Rural Development: Main equirements 288 Conclusion 291 20. Factor Markets and Rural Development 292 Introduction 292 Land Markets and Rural Development 293 Labour Markets and Rural Development 296 Rural Credit Markets 302 Institutional Lenders 303 Conclusion 309 21. Rural Development: Policies, Strategies and Instruments 311 Introduction 311 Need for a Rural Development Policy 312 Goals of Rural Development Policy 314 Hierarchy of Policy Goals 316 Strategies of Rural Development 317 Rural Development Policy Instruments: Conceptual Framework 319 Action Systems: Instruments 322 Conclusion 330 Bibliography 331 Index 337