This iS a textbook on environmental economics intended for under<br > graduates lltho have had at least one semester of microeconomic<br > theoryReaders should know the elementary theories of the firm and<br > consumerasl as supply and demand before reading the book<br > Some of the exposition is abstractbut no mathematics beyond high<br > school algebra iS used in the textNo knowledge of welfare eco<br > nomics iS assumedand the reader need have no prior acquaintance<br > with environmental problemsAs with any applied subject in eco<br > nomicssome knowledge of the subject matter will increase the<br > depth of understanding gained from reading this book<br > The intent of the book is to present a coherent thread of theoreti<br >cal and empirical analysisPart I presents the basic theoretical tools<br > necessary tO understand the subjectThe neoclassical theories of the<br > firm and consumer are extended tO include polluting discharges<br >Then basic ideas of welfare economicsof market failure from ex<br >ternalitiesand benefitcost analysis are presentedFinallythere iS a<br > careful analysis of alternative government programs tO optimize re<br >source allocation in the presence of externalities<br > Part II presents basic technical data on waterairand solidwaste<br > discharges and the resulting environmental degradationSources<br >amountsdamagesabatement techniquesand benefitcost calcula<br > I I<br >