Environmental and natural resource policy issues in developing countries

Section one describes a general approach to ENR policy analysis and stresses the need to distinguish between subjective values and objective facts, as well as between facts and "factoids" (exaggerated or inaccurate but generally accepted statements, e.g., concerning the threat of acid rain) and between "environmental values" and "economic values" (the latter being based solely on consumer demand, with little consideration for environmental preservation). Section two discusses the different settings for ENR policy analysis in less developed and developed countries in terms of population growth, poverty, GNP growth, technology level, institutional complexity, and cultural norms and behavior. Major ENR issues affecting policy formulation in developing countries include (in order of priority) the need to: reduce population growth rates, protect unique natural amenities, reduce urban-industrial congestion, improve energy supply and utilization and water quality and availability, encourage biological pest control, and reduce excessive fertilizer use. A final section examines the applicability of welfare economic theory to ENR policy formulation. The limits of the economist"s role in ENR policymaking are discussed in conclusion.