Environmental economics is a subfield of economics concerned with environmental issues. Central to environmental economics is the concept of market failure. Market failure means that markets fail to allocate resources efficiently. Economic Growth is not an antithesis to sustainability but a condition underlying sustainability. Economic progress emphasizes qualitative and quantitative progress in the context of clean and qualitative improvement to socio-economic system. Quantitative improvements enable us to meet the essential needs of the present generation without compromising the ability of future generations to meet their own needs. Economic integration processes have intensified in recent years and should impart dynamism to global trade and enhance the trade and development possibilities for developing countries. In recent years, a growing number of these countries have adopted courageous policy reforms involving ambitious autonomous trade liberalization, while far-reaching reforms and profound restructuring processes are taking place in Central and Eastern European countries, paving the way for their integration into the world economy and the international trading system. This book is an effort by the author to introduce the basic concepts and theories which form the focal point of environmental economics with a comprehensive insight into the subject.