NORMATIVE AND POSITIVE C H A P T E R 2 NORMATIVE AND POSITIVE ECONOMIC ANALYSIS ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

FIGURE 2. 1 Value of activities versus climate FIGURE 2.1 Value of activities versus climate. (Adapted from Mendelsohn et al., 1994.) ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

FIGURE 2. 2 Annual damages from average global temperature increase FIGURE 2.2 Annual damages from average global temperature increase. (Source: Nordhaus, 2008.) ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

FIGURE 2. 3 Marginal cost of emissions abatement FIGURE 2.3 Marginal cost of emissions abatement. (Source: Nordhaus, 2008.)10 ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

FIGURE 2.4 Optimal emission control. (Source: Nordhaus, 2008.) ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.