Environmental Economics: A Very Short Introduction av Stephen (Professor of Economics University College London) Smith

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If environmental protection is costly, how much should we spend on pollution control? Is it worth reducing pollution to zero, or should we accept some level of pollution because of the economic benefits associated with it? How can we assess the benefits that people get from a less-polluted atmosphere?In broad terms, environmental economics looks at how economic activity and policy affect the environment in which we live. Some production generates pollution, such as power station emissions causing acid rain and contributing to global warming, but household consumption decisions also affect the environment, where more consumption can mean more waste sent to polluting incinerators. However, pollution is not an inevitable consequence of economic activity - environmental policies can requirepolluting firms to clean up their emissions, and can encourage people to change their behaviour, through environmental taxes on polluting goods, for example. Generally, though, these measures will involv