Environmental Economics

Environmental economics is a branch of economics which deals with the inter-relationships between environment and development. Economic activities of human beings have a profound impact on natural environment. Hence, use/abuse of natural resources has raised many moral, legal and practical questions for present and future generations. Presently, many governments require cost-benefit analysis of policy options with regard to changes in environmental legislations by resetting environmental standards and introducing new policy instruments for environmental protection. Environmental economics has also made significant contributions to valuation techniques and design of new policy instruments for pollution control and management. This book provides a comprehensive description of current environmental problems facing the world and their solutions through economic institutions, economic incentives and other instruments and policies. In other words, the book focuses on international environmental problems and how economic principles can be applied to solve them. The book contains 22 chapters which have been organized into 6 theme parts. Part I (chapters 1 to 6) is titled Introduction to Environmental Economics. It provides conceptual and analytical clarity as regards environmental economics, protection of biological diversity, forests and environment, environmental pollution, principles of microeconomics and theories of welfare economics. Part II (chapters 7 and 8) is titled Theory of Externalities. It explains the concepts of externalities, failure of market, Pareto optimality, property rights, and Coase theorem. Part III (chapters 9 to 12) is titled Design and Implementation of Environmental Policy. It discusses Pigouvian taxes, effluent fees, tradable permits, choice between taxes and quotas, and implementation of environment policy. Part IV (chapters 13 to 17) is titled International Environmental Problems. It covers trans-boundary environmental problems, global climate change and the Paris Agreement (and the subsequent US withdrawal), climate change and India, and trade and environment. Part V (chapters 18 and 19) is titled Measuring Benefits of Environmental Improvements. It delves into non-market values and measurement methods, and risk assessment and perception. Part VI (chapters 20 to 22) is titled Sustainable Development. It deals with the concept and measurement of sustainable development, development framework for mining sector, and disaster mitigation and management. The book also contains a glossary of terms related to environment and ecology.