Environmental Economics is the first text that concentrates solely on environmental economics--the problems of earth, air, and water pollution--with an emphasis on both government and regulation and private-sector anti-pollution incentives. It assumes a knowledge of intermediate microeconomics; therefore, basic economics is not reviewed in this book as it is in others. The book is divided into four primary sections: the first ,, section defines the field of environmental economics in relation to general economics and to ecological and resource economics; the second section looks at market failure and considers why, even with apparent environmental protection, the market often fails to work properly; the third section examines government regulation of pollution using the industrial organization literature; and the final section looks at the demand for environmental quality, covering both revealed preference and stated preference methods.
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