Foundations and Scope of Environmental Economics

Environmental economics is a sub-discipline of economics that studies the interactions between economic systems and the natural environment. It is concerned with issues related to the allocation of resources, the management of natural resources, and the environmental consequences of economic activity. This field of study emerged in the 1960s in response to concerns about pollution, resource depletion, and other environmental problems that were becoming increasingly apparent.

The foundations of environmental economics lie in the basic principles of economics, such as supply and demand, market equilibrium, and cost-benefit analysis. Environmental economists use these principles to analyze how economic decisions affect the environment and to design policies that can help achieve environmental goals while minimizing economic costs.

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