ABSTRACT
Environmental economics, the school that is the focus of this chapter, works within the same paradigm as neoclassical economics and accepts many of the same techniques, but, as its name suggests, foregrounds concern for the environment and takes these issues most seriously. Environmental economists concern themselves with two main issues that arise from the recognition of planetary limits: environmental pollution and the depletion of scarce resources, including species. The chapter explores a key aspect of environmental economics: creating markets for environmental goods, and especially how these might be priced. The chapter provides a critical account of the success of markets in solving environmental problems. It also includes an account of the ‘environmental Kuznets curve’, the idea that as societies move through development they first pollute heavily but then become rich enough to tackle that pollution. Finally, the chapter offers a case study of pricing a key environmental resource: the value of a British coastline.
