What is Environmental economics?
'''Environmental economics''' is a domain of [[economics]] that looks at problems of the [[environment]] from an economical perspective.<ref>{{cite book |url=https://cup.columbia.edu/book/endangered-economies/9780231180849 |title=Endangered Economies; How the Neglect of Nature Threatens Our Prosperity |author=Geoffrey Heal |date=December 2016 |work= |publisher=Columbia University Press |isbn=9780231543286 |accessdate=23 February 2017}}</ref> [[Natural resources]], such as clean water are limited, because of [[pollution]]. They are also seen as ''free'' [[public good]]s. This means that if there are no rules on how to use these goods, they will be used too much. There are [[Externality|externalities]] for using these goods, and there is the problem of [[Free rider problem|free riders]]. In this perspective, the solution is to convert these resources into [[Good (economics)|economic goods]], which are integrated in the [[market]]. This will lessen the problem of free-riding, and give incentives to use these goods sparingly. An example for this is a [[tax]] which is tied to pollution. Proper legislation and observation of property right on how to regulate the use of these public goods is also another important factor in ensuring that market inefficiencies don't result. ==Related pages== *[[Ecology]] *[[Ecological economics]] *[[Green economy]] ==References== {{Reflist}} {{stub}} [[Category:Economic theories]] [[Category:Environment]]