1.1. What is Environmental Economics? Environmental economics is a subfield of economics that deals with the economic impact of environmental policies and the economic aspects of environmental degradation.

2.1. Market Failure Markets may fail to account for environmental costs and benefits, leading to overuse and degradation of environmental resources.

1.2. The Economic Causes of Environmental Degradation The economic causes of environmental degradation include market failure, externalities, public goods, and common property resources.

Field, B. C. (2017). Environmental economics: An introduction (8th ed.). McGraw-Hill.