Environmental Economics

Environmental economics is a branch of economics that focuses on environmental concerns. Environmental economics differs from ecological economics in that it highlights the economy as a subsystem of the ecosystem with an emphasis on natural capital preservation. Environmental economics, in its broadest sense, studies how economic activity and policies affect the environment in which we live. It studies how environmental and natural resources are generated and managed using economic concepts. The costs and benefits of various policy solutions can be compared using a range of economic techniques. EPA is also conducting new research to improve approaches for calculating the economic impact of environmental outcomes. Environmental economists conduct research to determine the economic implications of environmental policy, both theoretically and empirically.