Dasgupta, Partha2010-02-252010-02-252009http://hdl.handle.net/10625/41841In the presence of externalities involving nature's services, individuals and communities overexploit natural capital. In other words ecological services are subsidized. This working paper proposes a mathematical model that factors in values of social and environmental costs/benefits. Nature consists of degradable resources: resource stocks are self-regenerative, but suffer from depletion or deterioration when they are over-used. Extreme poverty is frequently associated with a degraded environment. Studies confirm that the world's poorest people live in especially fragile natural environments. When policies are evaluated a social cost-benefit analysis must be included.Text1 digital file (68 p.)enCOMMON PROPERTY RESOURCESENVIRONMENTAL ECONOMICSNATURAL RESOURCESRESOURCES MANAGEMENTSOUTH ASIAECONOMIC DEVELOPMENTMATHEMATICAL MODELGROSS DOMESTIC PRODUCTFINANCIAL POLICYDEVELOPMENT ECONOMICSWorking Paper