This unique graduate textbook offers a compelling narrative of the growing field of environmental economics that integrates theory, policy, and empirical topics. Daniel J. Phaneuf and Till Requate present both traditional and emerging perspectives, incorporating cutting-edge research in a way that allows students to easily identify connections and common themes. Their comprehensive approach gives instructors the flexibility to cover a range of topics, including important issues - such as tax interaction, environmental liability rules, modern treatments of incomplete information, technology adoption and innovation, and international environmental problems - that are not discussed in other graduate-levels texts. Numerous data-based examples and end-of-chapter exercises show students how theoretical and applied research findings are complementary, and will enable them to develop skills and interests in all areas of the field. Additional data sets and exercises can be accessed online, providing ample opportunity for practice. For more information, visit the book's website at http://phaneuf-requate.com/.

'Mature fields in economics have a foundational text that frames graduate students’ understanding of what has been established and where new research is needed. With Phaneuf and Requate’s new text, environmental economics has its foundational text! This is the first text that spans the full domain of modern research and practice in environmental economics. The authors have succeeded in defining how the field will be perceived by all economists and perhaps more importantly how the next generation of environmental economists can advance it.'

V. Kerry Smith - Emeritus Regents Professor, Arizona State University, Tempe

'A superb textbook in which mathematical, graphical and textual presentations reinforce each other to provide comprehensive, clear and concise coverage of all the materials necessary for students to develop a highly informed and robust understanding of economics as applied to decision and policy making regarding the natural environment.'

Ian J. Bateman - University of Exeter

'This book provides a state-of-the-art overview of how economic theory and methods can be used to study and improve both environmental and economic outcomes. It is likely to become a classic text for teaching environmental economics to graduate students.'

Kathleen Segerson - University of Connecticut

'The authors have done a remarkable service to the profession by distilling the foundational theory and methods of environmental economics into an easily readable and consistent format. Students who master the material in this book are well-prepared to launch independent research on pressing environmental problems.'

Catherine Louise Kling - Iowa State University

'Simply a masterpiece. This book is a most beautiful and elegant synthesis of the major scientific areas of inquiry within environmental economics, fit with canons, theory, and empiricism. It’s a tome that promises to be the authority for years to come.'

John A. List - Kenneth C. Griffin Distinguished Service Professor, Department of Economics, University of Chicago

'At last, here is a graduate text that covers the theory underlying environmental regulation and the valuation of environmental benefits, which also includes up-to-date empirical methods. It is a resource that should be widely used by the profession!'

Maureen Cropper - University of Maryland, College Park