ABSTRACT
This chapter argues that lack of interaction between scientific disciplines which address environmental and resource problems results in research with limited practical applications, as relevant biological and physical information is not incorporated into economics and basic economic concepts are not incorporated into the decision rules of biological and physical scientists. It addresses one of the key sources of environmental damage, which is the accumulation of residues and waste products. The chapter shows that precision technologies which are information intensive and adjust to heterogeneity and randomness can provide outcomes which display increased productivity and decreased pollution at the same time. It describes ways in which existing institutions and policies work against the adoption of the technologies, and discusses how incentives may be created to encourage adoption, taking into account informational constraints. An essential avenue for economic growth with limited environmental side effects is through the development and adoption of new technologies.
