What Is Environmental Economics?

What is environmental Economics?
I.
Economics is the study of the allocation of scarce resources.
oNote that the theories of economics can be apply to any scarce resource, not just traditional commodities.
oEconomics is not simply about profits or money. It applies anywhere constraints atomic number 18 faced, so that choices must be made.
oEconomists study how incentives affect peoples behavior.
Environmental and intrinsic resource economics is the application of the principles of economics to the study of how environmental and natural resources are developed and managed.
oNatural resources resources provided by nature that can be divided into increasingly small units and allocated at the margin.
oEnvironmental resources resources provided by nature that are indivisible.
oNatural resources serve as inputs to the economic system. Environmental resources are affected by the system (e.g. pollution).
II. Why get wind Environmental Economics?
In general, prices reflect the relative scarceness of goods.
oHowever, in environmental economics, markets, and thus prices, often do not exist.
What aspects of environmental and natural resource economics suck in it unique?
1.Market failures
When market failures exist, government intervention whitethorn be appropriate.
2.



Dynamics
The ending to consume a good instantly typically does not affect the ability to consume it tomorrow. However, the decision to use natural resources today does affect what will be available tomorrow.
Note that prices will influence this.
Higher prices two provide incentives to conserve resources, encourage exploration for new sources, and the learning of technologies to better obtain resources.
3.Irreversibility
Damage to natural resources has long-term effects. For example, if the supercilious Canyon were flooded, future generations would be unable to enjoy its beauty. This is not as large a problem for normal consumer goods.
4.Linkages between the economic and ecological...If you want to get a full essay, show it on our website: Orderessay



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