A Sketch of Environmental Microeconomics

  • Alfred Endres
  • Volker Radke
Part of the Springer Texts in Business and Economics book series (STBE)


The preceding section closed by stating a serious problem: market failure. It is at this point that a third “protagonist” is called upon the “stage” of economics to make amends, the government. To see how this might be done in principle, we introduce the concept of “internalizing externalities”, an idea that the media love to quote but seem to not always fully understand. Then, we turn from the principle to its practical application. Pollution taxes and command and control are introduced as alternative environmental policy instruments, and are evaluated according to economic criteria. This chapter is supposed to show how microeconomic analysis, as discussed in the preceding chapter, is useful for the analysis of environmental problems and policy.


Abatement Cost Marginal Abatement Cost Permit Price Marginal Abatement Cost Curve Abatement Cost Function 
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Supplementary material

305507_1_En_7_MOESM1_ESM.pptx (420 kb)
Ch7 (PPTX 421 KB)


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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.University of HagenHagenGermany
  2. 2.Baden-Wuerttemberg CooperativeState University RavensburgRavensburgGermany

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