Introduction

Abstract

This introductory chapter raises first the seemingly delicate issue of addressing environmental issues with economic tools and instruments. After all, environmental degradations are to some extent the result of economic activities, and a contradiction between economy and ecology seems to be obvious. Thereafter, the role of economic theory is explained together with a deeper analysis of the equilibrium approach to environmental economics. The need for appropriate allocation mechanisms, both on a national and an international level, to tackle environmental problems, will be discussed before a survey reveals the structure of this monograph.