Environmental Economics: Concepts, Methods and Policies, second edition, draws on the salience of the laws of thermodynamics and principles of ecology and illustrates how concepts and methods in economics need to be revised for policy analysis. Conceptual premises advanced in the text are supported by empirical evidence and illustrations.

This extensively revised new edition has been structured into five parts. The text begins with a list of environmental issues and challenges and concludes with a list of policies to deal with these challenges. Part I aims to give readers an appreciation of environmental challenges and the linkages between the environment and the economy. These linkages are examined by recourse to concepts in environmental science. The implications of these environment-economy linkages are then considered within
the frameworks of microeconomics in Part II and those of macroeconomics in Part III. Part IV considers the valuation of environmental goods and services at the microeconomic level and the macroeconomic level. The policy implications that stem from the preceding chapters form Part V.

Unlike most standard texts in environmental economics, this text contains a clearly developed section on Environmental-Macroeconomics. This section illustrates how standard approaches in macroeconomics and trade when revised to the reality of nature-capital would lead to significantly distinct policy outcomes.