What is Environmental Economics?

Hmmm. Economics? Environment? Do these words go together? By George, are they linked in any way? Well, in fact, yes they are. The environment relies heavily on economics to balance the weights that are incurred on the environment through just plain living and the daily grind of humanity. For example, to curb over-fishing, a limit is placed on catches or a fine must be paid. In another example, a company is heavily taxed when it emits carbon dioxide over a certain limit. And national forests and parks are better maintained with high, but reasonable, entrance and usage fees. These are all ways in which the field of economics is useful, even necessary, to the environment. Read on.

When we think of the environment, many things may come to mind: recycling, water shortages, food waste, over-fishing, mass tourism, atmospheric pollution, to name a few, and the list continues. However, one doesn't often think of economics when one thinks of the environment, but make no mistake about it - the two topics are tightly intertwined. Then environment opens the way for economic activity to take place, such as in paying a fee to get into a wildlife refuge, paying to enjoy a zoo or a bird sanctuary, or our tax money going to upkeep a national park. With the influx of tourists to those places, though, natural things experience wear and tear, break-down, littering, pollution, and other negative effects. One good thing is that economics can be brought in to help combat these problems, too, such as in levying a carbon tax, instituting fines for littering, and administering government sanctions against countries who participate in less-than-positive environmental activities.

We will begin to focus on environmental economics in the next class, where we will read the passage, work on some vocabulary, write some sentences, answer some questions all under the topic of environmental economics. Then we will turn to our design projects as usual. What will our design project be? Can you imagine designing something that combines the environment with economics? Think about it. You will find out soon enough!