Environmental economics is distinguished from ecological economics in that ecological economics emphasizes the economy as a subsystem of the ecosystem with its focus upon preserving natural capital. Environmental economics is an area of economics that studies the financial impact of environmental policies. Environmental economists perform studies to determine the theoretical or empirical effects of environmental policies on the economy. This field of economics helps users design appropriate environmental policies and analyze the effects and merits of existing or proposed policies. Environment, an inevitable component of human life, is facing great threats from all corners due to population explosion rapid industrialization, unscientific disposal of wastes and negligence towards the importance of nature. People were found to gossip about sustainable of environment, but they are not serious. This book is designed to introduce students to key contemporary issues in environmentäl economics and equip them with tools and methodologies to analyse and address environmental problems in an economic framework.

Economics