Most books in environmental economics either employ complex mathematical models or resort to a recital of case studies. What makes this new book by a leading expert in resource economics so useful is the careful blend of theory and practice. Terms and techniques are explained fully, and only a modest technical background in economics and mathematics is assumed. Partha Dasgupta examines the problems of resource management and pollution control within a common framework and relates them to issues in development planning. He also draws extensively on environmental literature to which students and policymakers seldom have access. Special attention is given to critical issues in environmental decisionmaking, such as externalities, pricing, cost-benefit analysis, uncertainty, and optimization. The author also uses real-world examples to illustrate difficult concepts.

The book develops several aspects of the theory of resource utilization to a greater depth and with greater subtlety than any other treatise I have seen. The well-prepared reader will come away with a deeper understanding of the subject and an enriched kit of analytical tools.
-- Robert Dorfman, Harvard University