Book ReviewFolmer H, Gabel HL: Principles of Environmental and Resource Economics: A Guide for Students and PolicymakersCAIS MAIN (Level 1) HC79 E5 P957This book consists of 22 chapters which provide an excellent introduction to important topics in the field of environmental and resource economics. The contributors include many prominent researchers in the field. The book is explicitly intended to be a teaching tool for upper-level students as well as a reference for practitioners and researchers. In my opinion, another niche for which the book is particularly suited is graduate programs in environmental policy, business administration, or a combination of the two. The book is organized into three parts: General Environmental Economics, Environmental Business Economics and Selected Topics. The first part, General Environmental Economics, covers the fundamentals of the field. The first chapter sets the stage for environmental issues with a discussion of markets and their failures. Correcting these failures inevitably requires an economic evaluation. Accordingly, the next two chapters address theoretical and empirical issues related to environmental valuation. How then are real political decisions made? A chapter on benefit-cost analysis provides some guidance, while another chapter on the principles of environmental policy shows how the response involves considering efficiency and equity. However, some argue that economic analysis provides an important and influential guide for policy makers. The next chapter shows this by comparing different policy instruments, such as standards, taxes and tradable permits. The final chapter demonstrates how economy-wide models are useful for forecasting economic impacts. usage.In conclusion, this book is not just another text in the growing body of literature on environmental and resource economics. It has two distinct comparative advantages. First, the authors appreciate the important, although sometimes limited, role of economic analysis in environmental policy. Second, the originality and growing importance of the chapters on environmental business economics. For these reasons, this book may prove particularly useful for introducing environmental and resource economics into graduate programs in environmental policy and business administration. These same reasons also make the book attractive as a reference for undergraduates, practitioners, and researchers working in the field..