Economics

more_vert

Environmental Economics

Environmental economics is a sub-discipline of economics concerned with environmental issues across the world. In broader and simpler terms, Environmental economics is a field of study to assess and improve the economic value of the environment. Environmental economics studies the effects of national or local environmental policies on the overall economy of a nation. It includes the study of costs and benefits of alternative environmental policies to deal with issues and areas such as air and water pollution, water quality, toxic substances, solid waste, deforestation and global warming.

The concept of market failure is central to the study of environmental economics. Market failure occurs where markets fail to allocate resources efficiently i.e. when the market fails to allocate scarce resources to generate the greatest social welfare.