What are ‘environmental Economics ‘
Ecological Economics is a field of Economics that studies the financial implications of environmental policy. Environmental economists perform studies to determine the theoretical or empirical effects of environmental policy on the economy. This field of Economics helps users design appropriate environmental policies and analyze the effects and merits of existing or proposed policies.
Breaking down the ‘environmental Economics ‘
The basic argument underlying environmental Economics is that there are environmental costs of economic growth, which are distributed in the current market model. These negative external effects like environmental pollution and other types of environmental degradation, can lead to the destruction of the market. Thus, environmental economists have analyzed the costs and benefits of specific economic policies, which also includes the implementation of the theoretical tests or studies on the possible economic consequences of environmental degradation.
The Economic Strategy Of The Environment
Environmental economists associated with the identification of specific problems to be eliminated, but can be several approaches to solving the same environmental problem. If the government tries to impose the transition to clean energy, for example, they have several options. The government may introduce a forced limit on carbon emissions, or it may take more stimulus decisions as placing the number of taxes on carbon emissions or providing tax credits to companies that adopt renewable sources of energy.
All these strategies are based, in varying degrees, on government intervention in the market, so the extent to which this is acceptable is an important political factor in the definition of environmental economic policy. This debate, also known as prescriptive (in which the government will have to manually control carbon emissions) and market (where the government will set goals and incentives, but otherwise allow companies to achieve these goals, however they wanted.)
Economic Problems Of The Environment
Environmental Economics also requires a transnational approach. Economist of the environment can determine the water of depopulation due to overfishing, as negative external factors must be considered. The United States can impose regulations on its own fishing industry, but the problem will not be solved without a similar action by many other countries who are also involved in overfishing. The global character of these environmental problems has led to the growth of non-governmental organizations (NGOs) such as the intergovernmental Panel on climate change (IPCC), which organizes annual forums with participation of heads of state to negotiate international environmental policy.
In the U.S., the policy proposals arising from the green economy, is usually a controversial political debate. Leaders rarely agree on the extent of external environmental costs, making it difficult to craft basic environmental policy. Protection Agency environmental (EPA) oversees the activities of the National center for environmental Economics, which emphasizes market-based solutions such as cap and trade policies related to carbon emissions. Their priority policies to promote biofuels, cost analysis, climate change, and the solution of the problem of environmental pollution of waste.