This textbook provides a concise introduction to micro and macroeconomics and demonstrates how economic tools and approaches can be used to analyze environmental issues. It is written in an accessible style without compromising the depth of analysis, and central themes of public debate regarding environmental problems and policies are discussed and analyzed from an economic perspective. The book is intended as an introductory (and in some parts also intermediate) textbook for students of environmental sciences without a background in economics. It also serves as a companion book for economists interested in a compact presentation of the micro and macroeconomic foundations of environmental economics. The second edition has been revised, updated, and expanded in many ways, including the addition of a microeconomic section on environmental technological change and a discussion on the significance of...