Kolstad, C., Environmental Economics

In this Very Short Introduction, Stephen Smith shows how the field of environmental economics looks at how economic activity and policy can affect the environment in which we live. The book discusses environmental issues including pollution control, reducing environmental damage, global climate change policies, questions about how we should balance environmental and economic considerations, and what form government policies should take.

In this Very Short Introduction, Stephen Smith shows how the field of environmental economics looks at how economic activity and policy can affect the environment in which we live. The book discusses environmental issues including pollution control, reducing environmental damage, global climate change policies, questions about how we should balance environmental and economic considerations, and what form government policies should take.

This book lies at the intersection of natural sciences, economics, and water en- neering and is in line with the long tradition of environmental economics at the University of Heidelberg. In the 1970s, the Neo-Austrian Capital Theory was developed using the fundamental laws of thermodynamics as a common language between the natural and social sciences. Niemes (1981) integrated the dynamic and irreversibility characteristics of the natural environment into the Neo-Austrian c- ital theory. Faber et al. (1983, 1987, 1995) then extended this interdisciplinary approach further to create a comprehensive, dynamic, environmental resource model. Over the last 3 decades, the theoretical foundations of environmental economics have been modi ed and there have been an impressive variety of applications. This book aims to reduce the gaps between economic theory, natural sciences, and engineering practice. One of the reasons these gaps exist is because economic assumptions are used to construct dynamic environmental and resource models, which are not consistent with the fundamental laws of the natural sciences.