Environmental Economics

Environmental economics is a subfield of economics concerned with environmental issues. Central to environmental economics is the concept of market failure. Market failure means that markets fail to allocate resources efficiently. As stated by Hanley, Shogren, and White (2007) in their textbook Environmental Economics: A market failure occurs when the market does not allocate scarce resources to generate the greatest social welfare. A wedge exists between what a private person does given market prices and what society might want him or her to do to protect the environment. This book is an effort by the author to introduce the basic concepts and theories which form the focal point of environmental economics with a comprehensive insight into the subject, this compendium attempts to bring to right the various environmental issues that have prompted the expansion of environmental economics with its enlightening approach to the subject, it is hoped that this book would be vastly resourceful to readers involved in economics.