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A Sketch of Environmental Microeconomics

In: Economics for Environmental Studies

Author

Listed:
  • Alfred Endres

    (University of Hagen)

  • Volker Radke

    (State University Ravensburg)

Abstract

The preceding section closed by stating a serious problem: market failure. It is at this point that a third “protagonist” is called upon the “stage” of economics to make amends, the government. To see how this might be done in principle, we introduce the concept of “internalizing externalities”, an idea that the media love to quote but seem to not always fully understand. Then, we turn from the principle to its practical application. Pollution taxes and command and control are introduced as alternative environmental policy instruments, and are evaluated according to economic criteria. This chapter is supposed to show how microeconomic analysis, as discussed in the preceding chapter, is useful for the analysis of environmental problems and policy.

Suggested Citation

  • Alfred Endres & Volker Radke, 2012. "A Sketch of Environmental Microeconomics," Springer Texts in Business and Economics, in: Economics for Environmental Studies, edition 127, chapter 7, pages 99-117, Springer.
    • Handle: RePEc:spr:sptchp:978-3-642-31193-2_7
    DOI: 10.1007/978-3-642-31193-2_7
    as

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