Economics for Environmental Studies: A Strategic Guide to by Alfred Endres, Volker Radke

By Alfred Endres, Volker Radke

An figuring out of basic monetary strategies is vital for college kids in environmental reports courses worldwide. the current textbook addresses their wishes, offering a concise creation to micro- and macroeconomics and demonstrating how those fiscal instruments and ways can be utilized to investigate environmental matters. Written in an available variety with no compromising intensity of the research, imperative concerns within the public coverage debate on environmental difficulties and environmental coverage are mentioned and analyzed from an economics perspective.
The booklet is intended either as an introductory textual content for undergraduate scholars in environmental sciences with no heritage in economics, and as a significant other for economists attracted to a presentation of the micro and macro foundations of environmental economics, in a nutshell.

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Extra resources for Economics for Environmental Studies: A Strategic Guide to Micro- and Macroeconomics

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The most threatening example is that of greenhouse gas emissions into the atmosphere caused by burning fossil fuels. Both problems are important issues within natural resource economics. 4 The Circular Flow and the Natural Environment In Fig. 1 of Sect. 3 above, nature doesn’t appear at all. It might be possible to integrate natural factors of production into the circular flow. In this case, however, nature would play a subordinate role. It would appear merely as a supplier of raw materials for human economic activity.

28 3 The Economic Approach For example, during the financial crisis in 2008 and 2009, many governments raised their expenditure to build new infrastructure or to create incentives for consumers to increase their consumption expenditure. The purpose was to stabilize aggregate demand, in order to avoid a rise in unemployment. At the same time, central banks all over the world lowered interest rates in order to stimulate investment activities. It has to be noted that governmental interventions in the economic process often restrict the individual freedom of choice discussed above, which is fundamental to the existence of a market economy.

Of course, the idea of achieving a certain goal efficiently does not say anything about what this goal might be. Indeed, the criteria according to which a car is chosen and the relative weights of these criteria in the decision making process might be quite different for different individuals. For some people fuel efficiency might be most important. For others, size, speed, or prestige effect may be crucial. Similarly the decision to pursue environmental studies might be driven by different motives.

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