Environmental Resources, Prices and Distribution

Fausta Pellizzari

Economia politica, 2001, issue 3, 393-426

Abstract: The aim of this work is to include the environmental resources in a multisectoral linear scheme of production and price-distribution. I examine several ways of accomplishing the reintegration process: adding a new process in the standard technical matrix; increasing the technical coefficients, addressing to this aim a part of the net product. The result is a change in the quantity and price systems. Such a change is insufficient to determine the price of the environmental resource, which must be determined apart. I discuss the significance of setting the price of the environmental resource as equal to its cost of reintegration and the significance of a price that would also include a pure environmental rent. I finally analyse how the price of the environmental resource affects the distribution of income and the degree of conservation of the resources.

Date: 2001
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