ABSTRACT
This chapter explores the relationship between different approaches to environmental management and the nature of environmental capacity. It is divided into two parts. The first part advocates a pluralistic approach to environmental management that combines economic incentives with participatory practices and state regulation. The second part focuses upon capacity building. The chapter draws upon various interpretations of the concept and proposes a conceptual framework for understanding the broad dimensions of environmental capacity. Traditional theory on environmental management is rooted in the fundamental premise that self-interested behaviour will inevitably lead to environmental degradation. In response to the insufficiencies of the state, a more contemporary debate has emerged over the roles of ‘markets’ or ‘citizens’. Environmental economics is based upon mainstream economic analysis of pollution problems in free market systems.
