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Environmental Economy

Imagine nations and communities around the world taking into account environmental goods’ value when making business plans and investments. Imagine everyone adding to their equations the environmental cost that their decisions will result in. Imagine creating a system that makes caring for our planet a must, not an option. Here is how we can make these visions reality.

Environmental economics is a discipline that deals with negative externalities generated by the production of goods and services. These externalities have harmful effects on the environment and need to be addressed and reduced. Environmental economics’ main premise is that environmental goods, such as clean air and water, carry an economic value and need to be considered as a part of business strategies as well as tax systems

Environmental Economics – what challenges does it aim to reduce?


We breathe contaminated air, eat contaminated food and drink contaminated water. Environmental pollution is so omnipresent that we have already gotten used to it. It is alarmingly easy to forget that 8.3 million people die every year due to health issues caused by pollution. It makes up for about 15% of all global annual deaths. And it will only get worse, if we don’t implement effective solutions and international regulations.

Finite Resources

We’ve been using Earth’s natural resources for thousands of years. However, the past two centuries of rapid population growth, industrialization and urbanization resulted in tremendous exploitation. Resources such as fossil fuels are exhaustible and it is only a matter of time when the Earth runs out of them. The focus on renewable, clean energy is necessary for our survival.


Humans are skilled not only in taking too much from the planet, but also in wasting the most of what they create. We generate around 275 million tonnes of plastic waste a year. It enters our soil, our food and our water. Our bodies are full of plastic. And it won’t change until we do something about it.

Wildlife Damage

Our actions towards the planet cause rapid changes in the environment, leading to wildlife damage and biodiversity loss. It generates a threat to the whole ecosystem, since some of the species are going extinct, leaving empty spots in the natural food chain. Biodiversity loss also creates a risk of inbreeding, causing genetic disorders and additionally weakening the whole environmental structure.

Climate Change

For the past two centuries we have increased the carbon dioxide emission to the atmosphere by 50%. We can already notice the consequences of it in our daily lives, dealing with unbearably high temperatures in the summer and increasingly intense natural disasters, such as forest fires or tornados. Ice masses are rapidly melting and sea levels are rising, covering coastal areas around the world. If we don’t act now, next generations will struggle to survive in the extreme weather and climate conditions.

Benefits of Environmental Economics

Protecting the environment

By focusing on the environmental problems and creating solutions that can reduce their global impact.

Guarding environmental amenities

By attributing an economic value to natural resources so that they can not be omitted or ignored while making business decisions.

Promoting sustainable development

By investing in companies and organizations that provide clean energy sources, reduce waste and contamination, protect wildlife and strive to build a sustainable future for everyone.

Uniting global effort

By coordinating international actions that improve the condition of the natural environment around the world and work to stop global issues such as climate change.

Improving living conditions on Earth

By supporting clean energy, waste reduction and natural resources protection, and rebuilding a healthy environment.

Case Studies