Includes bibliographical references and index.

Introduction -- The theory of the consumer -- The theory of the firm -- General equilibrium and welfare economics -- Introducing prices : Pareto optimality & perfect competition -- Market failure : when prices are wrong -- From supply and demand to social and ecological context -- The challenge of pollution control : groundwater pollution -- New directionss for economics, the economy, and the environment. Economic Theory for Environmentalists is an easy-to-use, logically developed book that clearly explains complex economic concepts for both students and policy-makers. The mysteries of Pareto optimality, efficiency, price theory, perfect competition, market and intervention failure are addressed in an understandable presentation. Because the foundations of neoclassical economic theory continue to form the basis for policy decisions regarding the environment, the authors focus on clarifying neoclassical thinking as well as analyzing the effects this thinking has had on environmental policy decisions. With their overview of micro- and macroeconomic schools of thought, the authors also provide the context within which current economic theory and policy evolved and point the way to new concepts and policy approaches in economics. Concrete examples are used to illustrate theoretical concepts throughout the book.