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Abstract

This is a draft chapter for K. Hartley and C. Tisdell, Microeconomic Policy, Second Edition. It is designed to illustrate how microeconomics can be applied to the analysis of issues involving the environment and the availability of natural resources and policies to address these issues. It outlines the micro-basis of a number of macro-environmental relationships, considers environmental externalities and their regulation, analyses some environmental relationships involving public goods or public bads, introduces the concept of total economic value and discusses the consequences of open-access and common property resources and policies to control their use.

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