Abstract
In the last few decades, environmental and resource issues such as the extinction of species, toxic spills, depletion of natural resources, climate change, air and water pollution etc., as well as their relationship to the economy have drawn public’s attention. While environmental economics enable us to understand the nature of environmental problems, its tools are vital for applying the concepts of sustainability under scarcity into the current economic models. The following report will look into the ways we can better manage environmental risks by using economic tools in several ways.
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