ECS2606
NOTES
, lOMoARcPSD|21997160
ECS2606 NOTES BY
SHANTELL CHAKA
LEARNING UNIT 1
Introduction to Environmental Economics
‘Environment’ refers to the natural environment
Introduction
Economics is the study of how and why individuals and groups make decisions about
the use and distribution of valuable human and nonhuman resources.
Environmental economics on the other hand is the application of the principles of
economic to the study of environmental resources are managed.
Types of Environmental Economics
Environmental Economics
-Environmental Economics is a sub-field of neoclassical economics,”an economic
That emphasizes individual self interest , free markets and limited government
Intervation to achieve allocation of resources.
-The neoclassical economics framework attempts to assess everything in monetary
Terms,increased output and better income distribution,using tools of supply and
Demand.
-In neoclassical economics, value of goods and services is expressed in prices.
-It is possible or should be to calculate the value of natural entity (tree, clean air ,or
Lion) in monetary terms.
Relationship between the environment and the economy (neoclassical framework) .
Neoclassical environmental economics perspective.
ENVIRONMENT
ECONOMY
, lOMoARcPSD|21997160
Natural resource economics
-It’s a branch of economics that deals with the optimal utilization and management
of natural resources ect (land ,water, air, minerals, living organsims).
- Studies optimal use and management of natural resources (land, water, air,
minerals, living organisms)
- Aims for sustainability and conservation
- Analyzes market failures and policy interventions
- Interdisciplinary approach (economics, ecology, biology, geology)
Ecological economics
-Is a relatively new field.
-This field views economy as a subsystem for the environment.
-Ecological economics believes that the environment has value in itsel, not just because of its
economic benefits.
-Ecological economists believe that economic growth can’t replace the loss of the natural
environment.
-Ecological economics says that traditional economic tools, like supply and demand, aren't
enough to understand the relationship between the environment and the economy.
-Ecological economics combines insights from economics, ecology, sociology, and other
fields to ensure the economy doesn't harm the environment.
The relationship between the environment and the economy according to ecological
economics
Ecological economics perspective
ENVIROMENT
ECONOMY
NOTES
, lOMoARcPSD|21997160
ECS2606 NOTES BY
SHANTELL CHAKA
LEARNING UNIT 1
Introduction to Environmental Economics
‘Environment’ refers to the natural environment
Introduction
Economics is the study of how and why individuals and groups make decisions about
the use and distribution of valuable human and nonhuman resources.
Environmental economics on the other hand is the application of the principles of
economic to the study of environmental resources are managed.
Types of Environmental Economics
Environmental Economics
-Environmental Economics is a sub-field of neoclassical economics,”an economic
That emphasizes individual self interest , free markets and limited government
Intervation to achieve allocation of resources.
-The neoclassical economics framework attempts to assess everything in monetary
Terms,increased output and better income distribution,using tools of supply and
Demand.
-In neoclassical economics, value of goods and services is expressed in prices.
-It is possible or should be to calculate the value of natural entity (tree, clean air ,or
Lion) in monetary terms.
Relationship between the environment and the economy (neoclassical framework) .
Neoclassical environmental economics perspective.
ENVIRONMENT
ECONOMY
, lOMoARcPSD|21997160
Natural resource economics
-It’s a branch of economics that deals with the optimal utilization and management
of natural resources ect (land ,water, air, minerals, living organsims).
- Studies optimal use and management of natural resources (land, water, air,
minerals, living organisms)
- Aims for sustainability and conservation
- Analyzes market failures and policy interventions
- Interdisciplinary approach (economics, ecology, biology, geology)
Ecological economics
-Is a relatively new field.
-This field views economy as a subsystem for the environment.
-Ecological economics believes that the environment has value in itsel, not just because of its
economic benefits.
-Ecological economists believe that economic growth can’t replace the loss of the natural
environment.
-Ecological economics says that traditional economic tools, like supply and demand, aren't
enough to understand the relationship between the environment and the economy.
-Ecological economics combines insights from economics, ecology, sociology, and other
fields to ensure the economy doesn't harm the environment.
The relationship between the environment and the economy according to ecological
economics
Ecological economics perspective
ENVIROMENT
ECONOMY
