Revised and updated for the 2nd edition, this textbook provides an analysis and investigation of the most essential areas of environmental economic theory and policy, including international environmental problems. The approach is based on standard theoretical tools, in particular equilibrium analysis, and aims to demonstrate how economic principles can help to understand environmental issues and guide policymakers. Current topics including climate change, overfishing and integrated approaches to environmental policies are carefully analyzed in this framework, and a multitude of practical examples from various parts of the world is presented. Addressing undergraduate and graduate students, this book is a must read for everybody interested in a better understanding of environmental economics.

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Hans Wiesmeth is currently the President of the Saxon Academy of Sciences and Humanities, Leipzig, Germany, and a professor emeritus at the Faculty of Business and Economics of Technical University of Dresden, Germany. From 2005 to 2010 he was on leave to act as Dean of HHL - Leipzig Graduate School of Management. Before joining Dresden University of Technology in 1992 he had a professorship in economics at the University of Bonn and visiting professorships in Canada. He was appointed President of DIU Dresden International University in September 2010. Hans Wiesmeth served as Vice-Rector Research at Dresden University of Technology for seven years from 1993. From 2000 through 2003 he was the Founding Director of BIOTEC, the Biotechnological Centre at Dresden University of Technology. His research interests range from general equilibrium theory to environmental economics and include areas such as allocation of global public commodities on the one hand and extended producer responsibility on the other.