Now in its second edition, this text provides a comprehensive and coherent discussion of environmental economics. It begins with an overview of the interdependence of economics and the environment. It then focuses on the theories and concepts from mainstream economics and describes how they are applied to environmental issues. The book discusses in detail the issues of market failure, externality and welfare with regard to the environment. It also analyses population dynamics and its relationship to the environment. The concepts and issues related to natural resources economics and valuation of environmental resources as an important part of environmental economics is also explained. Finally, the book presents important national and international environmental issues and legislations. This second edition includes a new chapter that focuses on the interaction between the economy and the environment using the material balance model and examines the nature of environmental problems. It focuses on applying the principles of welfare economics to the environment and its role in decision making relates to environmental resource use. Key features:* Discusses various real-life environmental issues for better understanding of theory.* Provides a list of assignment topics to encourage students to gain practical knowledge.* Includes a glossary containing important terms.