We shall approach the problem of understanding the fundamental economic reasons for environmental concern in a free economy by examining the set of conditions that would have to prevail for society to be satisfied with the current balance between the use of 'the environment' as a waste disposal sump and as an amenity, and between the rate of extraction of known deposits of minerals, and the supplies remaining for future generations. Having established these conditions, and the institutional framework necessary for their existence, we will then be able to decide whether or not these conditions were met in the 'real world'. This approach is taken as it provides both a review of the material with which readers are expected to be familiar, and a reference source to which they can refer back, if necessary, whilst reading further in the book.