Scope of Environmental Economics
1. Resource Management: Environmental economics addresses the allocation and management of natural resources such as water, forests, fisheries, and minerals. It examines how economic incentives, property rights, and regulations influence resource use, conservation, and depletion.
2. Pollution Control: A significant focus of environmental economics is on pollution control and management. This includes analyzing the costs and benefits of different pollution abatement technologies, designing efficient pollution control policies such as emissions taxes or tradable permits, and assessing the impacts of pollution on human health, ecosystems, and economic activities.
3. Climate Change Economics: Environmental economics plays a crucial role in understanding and addressing climate change. It examines the economic impacts of climate change, such as changes in agricultural productivity, extreme weather events, and sea-level rise.
4. Ecosystem Services: Environmental economics considers the economic value of ecosystem services—benefits provided by natural ecosystems to human societies. This includes services like water purification, pollination, carbon sequestration, and recreational opportunities.
5. Environmental Policy Analysis: Environmental economics provides tools for analyzing the effectiveness, efficiency, and equity of environmental policies. It evaluates the impacts of regulatory measures, market-based instruments, subsidies, and other policy interventions on environmental quality, economic welfare, and social equity.