Welfare Measurement in Imperfect Markets: A Growth Theoretical Approach (New Horizons in Environmental Economics)

by Thomas Aronsson, Karl-Gustaf Loefgren, and Kenneth Backlund

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Book cover for Welfare Measurement in Imperfect Markets

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This book cleverly integrates the research on welfare measurement and social accounting in imperfect market economies. In their previously acclaimed volume, Welfare Measurement, Sustainability and Green National Accounting, the authors focused on the external effects associated with environmental damage and analysed their role in the context of social accounting. This book adopts a much broader perspective by analysing a wide spectrum of resource allocation problems of real-world market economies.

The authors' aim is to derive exact welfare measures in imperfect market economies and compare them with their counterparts in a first-best equilibrium. Using numerical analysis, they also attempt to make the leap from theory to practical application by measuring the empirical importance of market imperfections. Such analysis provides the tools for examining whether 'real life' approximations of the welfare contribution of external effects, such as information collected by using the willingness-to-pay method, actually capture true and accurate values. Finally, the authors address the theory of cost-benefit analysis, in terms of environmental and other public policies, in dynamic general equilibrium models.

This book is an impressive investigation of the theory of social accounting, with particular emphasis on valuation problems facing imperfectly competitive markets. It will make challenging but highly rewarding reading for academics and researchers interested in environmental economics, welfare measurement, social accounting and green accounting.

  • ISBN10 1840647795
  • ISBN13 9781840647792
  • Publish Date 27 October 2004 (first published 1 January 2004)
  • Publish Status Active
  • Publish Country GB
  • Imprint Edward Elgar Publishing Ltd
  • Format Hardcover
  • Pages 208
  • Language English