Environmental Economics & Resource
Economics
• Presented by: Shivakuamr
• PhD Scholar in Economics IIT Bhubaneswar
• Date: 03/02/2025
Introduction to Environmental
Economics
• Environmental economics studies the
relationship between the economy and the
environment.
• Focuses on sustainable resource use and
minimizing negative externalities.
Why Economics Matters for the
Environment
• Economic activities impact the environment
through resource extraction, pollution, and
waste generation.
• Balancing economic growth and
environmental protection is crucial.
Market Failures & Externalities
• Market failures occur when private markets
fail to allocate resources efficiently.
• Externalities: Costs or benefits affecting third
parties (e.g., pollution).
Concept of Sustainable Development
• Meeting present needs without compromising
future generations.
• Key principles: Economic efficiency, social
equity, environmental protection.
Environmental Kuznets Curve
• Hypothesis: Environmental degradation
initially increases with economic growth but
declines after a certain income level.
Natural Resource Management
• Sustainable use of renewable & nonrenewable resources.
• Conservation strategies: Efficient allocation,
restoration, and protection policies.
Policy Instruments in Environmental
Economics
• Economic tools: Taxes, tradable permits, and
subsidies.
• Regulatory approaches: Environmental
standards, restrictions.
Cost-Benefit Analysis in DecisionMaking
• Weighing the costs and benefits of
environmental policies.
• Helps policymakers make efficient and
sustainable choices.
Valuing Environmental Goods
• Methods: Willingness to Pay (WTP),
Contingent Valuation, Hedonic Pricing.
• Assigning monetary value to non-market
goods.
Circular Economy & Green Growth
• Minimizing waste, maximizing resource
efficiency.
• Transitioning to sustainable production and
consumption models.
Climate Change & Global Agreements
• International policies: Kyoto Protocol, Paris
Agreement.
• Efforts to mitigate climate change and reduce
emissions.
Case Studies
• Successes: Renewable energy adoption,
carbon pricing.
• Failures: Overfishing, deforestation policies.
Challenges & Future Directions
• Addressing climate change, biodiversity loss,
and resource depletion.
• Strengthening global cooperation and
sustainable policies.
Conclusion & Key Takeaways
• Economic policies play a vital role in
sustainable development.
• Collaboration between governments,
businesses, and individuals is crucial.