Applying Economic Analysis to Environmental Problems: Opportunities and Constraints

Abstract

Economic analysis of environmental and natural resource management problems is receiving increasing attention. Whether the concern is with traditional pollution related issues, especially of air and water in urban areas, or with more complex natural resource management problems in rural areas, economists are increasingly being called upon to conduct analysis and offer policy advice for meeting these needs. This paper discusses the evolution of economic analysis of environmental concerns and considers some of the constraints to and opportunities for expanded economic analysis of environmental problems. Experience from both developing and developed countries is used to illustrate various points and an assessment of recent experience is offered.