Now in its fourth edition, this book is a comprehensive and contemporary analysis of the major areas of natural resource and environmental economics. All chapters have been fully updated in light of new developments and changes in the subject, and provide a balance of theory, applications and examples to give a rigorous grounding in the economic analysis of the resource and environmental issues that are increasingly prominent policy concerns. This text has been written primarily for the specialist market of second and third year undergraduate and postgraduate students of economics. Key features:New chapter on trade and the environment, and for the first time, the text examines the economics of happiness. Extended coverageon economy-wide modelling, valuing the environment, the practice and ethics of discounting and climate change. Easy to follow, new two colour text-design and improved pedagogical features for enhanced readability and quick reference. New boxes on real-world problems and policy, keeping you informed with topical debates. Revised questions for discussion and problem-solving, to test your knowledge and practice your understanding.Detailed mathematical analysisis clearly explained in chapter appendices on the companion website, to help aid your learning. Further reading listshave been fully updated, giving directions to the latest resources to help deepen your understanding. Visit (www.pearsoned.co.uk/perman) to utilise a rich variety of online resources for both lecturers and students. Roger Permanis Reader in Economics, Strathclyde University. Yue Mais Professor in Economics, Lingnan University, Hong Kong, and Adjunct Professor of Lingnan College, Zhongshan University, China. Michael Commonis Emeritus Professor in the Graduate School of Environmental Studies at Strathclyde University. David Maddisonis Professor of Economics at the University of Birmingham The late James McGilvray was Professor of Economics at Strathclyde University. (Pearson)