The author shows that a cleaner environment does not necessarily lead to a lowering of the economic growth rate. The precise conditions under which the short-term growth rate can increase are determined. In another chapter, the costs are assessed that give insight into the way people suffer in the short term when resources are set aside for cleaning-up activities. Whenever a government strives for a cleaner environment its actions may be hampered by the political decision-making process in that it cannot employ its instruments to the fullest extent. The consequences of this for the economic subjects are determined. The gains from cooperation are determined in an international setting where pollution affects more countries.Situations are identified where the benefits of cooperation are negligible or substantial, and, therefore, the need for cooperation will be accordingly low or high. The book ends with a critical discussion about the usefulness of our concept of national income as a measure of welfare and a measure of sustainability.
