Economy and Environment: A Theoretical Essay on the Interdependence of Economic and Environmental Systems

Environmental external effects are evidence of the inability of market prices to reflect the interdependence of economic activities undertaken within a common environment, and are an essential feature of all market economies. This book shows how external effects are produced by the interaction of the economy with its environment, using a classical mass-balance model.

A demonstration of how external effects are produced by the interaction of the economy with its environment uses a classical mass-balance model to prove the interdependence of economic activities within a common environment.