Environmental Economics For decades, environmental considerations during a development deal were largely an afterthought. The only things that were likely to make it to a project’s balance sheet had to do with costs to the company rather than to any natural habitat. As an awareness grew of the enormous impact that environmental factors could have on world trade however, they began to “appear on the balance sheet” with increasing frequency ("Are You Being Served?", 1). One of the most important aspects of environmental economics involve externalities. Externalities refer to the external economic effects that take place when developers engage in actions, such as building residential condos on wetlands which offer natural protection against...The end:
.....n for salmon, the principle of optimization comes into play. Producers attempt to extract the maximum amount of present value from the benefits gained. It is clear then, that the environment has truly come full circle in the economic considerations of developers and polluters. Where once the impact on wetlands and endangered species were merely an afterthought in a private company’s balance sheet, now it is foremost in the minds of business executives, if only to buy credits within a lawfully set limit on their ability to despoil wildlife and natural habitats. It is a shift in attitudes that may one day constrain environmental pollution in the cheapest, most efficient way. Bibliography "Are You Being Served?". Economist April 21, 2005 2005.