Environmental Economics and Demography

Environmental resources, including clean air, water, biodiversity, and climate stability, are often categorized as public goods. These goods are crucial for the well-being of society and the planet, yet their management poses unique challenges. Due to their non-rivalrous and non-excludable nature, they are susceptible to overuse, market failures, and the free rider problem. In this article, we explore the concept of environmental goods as public goods, the economic challenges they present, and potential solutions for effective management. We also delve into the economic principles like the Coase Theorem, Cost-Benefit Analysis (CBA), and compensation criteria to highlight how we can address the complexities of environmental conservation while ensuring sustainability. Understanding these concepts is vital for policymakers, businesses, and individuals committed to protecting our environment for future generations.