Environmental Economics

The quest of sustainable development and the environmental harm brought about by economic activity gave rise to the field of environmental economics, which is still developing. The field of environmental economics may trace its roots back to the 1960s, a time of rapid industrialization in the West and rising public awareness of the associated pollution. As people began to feel the harmful effects of environmental deterioration, environmental activism grew in popularity. Rapid economic expansion and its effects on the environment have gained widespread attention. Its focus is on the formulation and implementation of the environmental policy. The neoclassical foundation of environmental economics addresses problems like inefficient resource allocation, negative externalities, market failure, and public good management. Environmental economics relies heavily on valuation as a tool for assessing potential solutions to problems associated with the administration of environmental and natural resource usage. It is difficult to put a monetary value on intangible advantages like clean air and unpolluted environment, making the valuation of natural resources a complicated task. It’s not easy to put a price on a resource like a mountain range that serves numerous purposes; for instance, it may prevent floods, give direct river flow patterns, scenic beauty, and supply good soils for agriculture. This textbook is intended for an introduction course in environmental and resource economics. Environmental and resource economics are the primary focus of this book’s theoretical presentation. The focus is on systematically building the conceptual frameworks and theoretical ideas needed to analyze environmental and resource problems.