ABSTRACT
Clearly, policy makers need to be conversant with economic concepts, not only to understand the basis of environmental problems but also to be able to formulate creative solutions to the recurring problem of meeting human needs in the here-and-now without depleting environmental capital. Pearce and Turner (1990) have identifi ed three key issues relevant to the extension of economic theory to environmental decision making: defi nition of objectives (effi ciency or equity? wealth creation or quality of life?); diffi culties in valuing intrinsic or objective value; and the challenge of building sustainability criteria into economic analyses. These themes recur throughout this chapter.
