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The environment is not just a backdrop to our lives; it is the very foundation upon which economies thrive and societies flourish. As environmental challenges become increasingly urgent, the need for a sound economic understanding of these issues has never been greater. Economics of the Environment: Theories, Policies, and Practices is designed to meet this need; a comprehensive textresource designed to bridge the gap between economic theory and environmental sustainability. This resource is crafted for undergraduate and postgraduate students of economics and other social sciences, offering a structured and engaging exploration of the critical intersection between economics and the environment through rigorous pedagogy and accessible writing.
The environmental challenges of the 21st century demand a robust understanding of economic principles that can inform effective policies and sustainable practices. This textresource aims to equip students with the theoretical foundations, analytical tools, and practical insights necessary to address these challenges. Structured across five comprehensive chapters, the resource covers key areas such as environmental externalities, the valuation of ecosystem services, pollution control strategies, natural resource economics, and the economics of climate change. Each chapter is designed to provide
clear learning objectives, up-to-date examples, and analytical tools that align with both global literature and Indian policy developments. Chapter 1 introduces the concept of environmental externalities, exploring how market failures lead to environmental degradation and the role of economic policies in mitigating these issues. Chapter 2 digs deep into the valuation of ecosystem services, highlighting the economic importance of natural ecosystems and the methods used toquantify their benefits. Chapter 3 examines pollution control strategies, discussing various policy instruments such as taxes, subsidies, and tradeable permits. Chapter 4 focuses on natural resource economics, addressing the sustainable management of
renewable and non-renewable resources. Finally, Chapter 5 explores the economics of climate change, analysing the costs and benefits of mitigation and adaptation strategies in the context of global and local efforts.