This book brings together some of the most important recent developments in the various aspects of environmental economics as well as providing an introduction to its theory and practice. Environmental valuation techniques, including exciting new approaches such as production function techniques, are outlined and applied to developed and developing countries, and to countries in transition from centrally planned to market based systems. The effectiveness of regulatory and market based policy instruments, including environmental taxation and tradeable permits, is analysed and applied to environmental problems such as the reduction of greenhouse gas emissions from transport and the conservation of biological diversity.