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Environmental Economics

Environmental economics (JEL Q5) covers the economics of the environment and pollution.

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Scope

It includes externalities and pollution control, valuation of environmental goods, and climate-change economics.

Sub-topics

Core questions

  • How should pollution and externalities be controlled?
  • How are environmental goods valued?
  • How should climate change be addressed economically?

Key concepts

  • Externalities
  • Pollution control
  • Environmental valuation
  • Cap-and-trade vs taxes
  • Climate economics

Related topics

Frequently asked questions

How do economists address pollution?
Through instruments that price externalities — taxes (e.g., carbon taxes) or tradable permits — to align private and social costs.

Methods for this concept

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