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Topic 3 : ENVIRONMENTAL ECONOMICSTopic 3ENVIRONMENTAL ECONOMICSIntroductionThe 1980s witnessed a fundamental change in the way governments and development agencies think about the environment and development. The two are no longer regarded as mutually exclusive. It is now recognized that a healthy environment is essential to sustainable development and a healthy economy.Economists and planners are beginning to recognize that economic development that erodes natural capital is often not successful.Infact development strategies and programs which do not take adequate account of the state of critical resources- forests, soils, grasslands, freshwater, coastal areas and fisheries- may degrade the resources base upon which future growth is dependent .The committee of international development institutions on environment (CIDIE) was launched in 1980 and has played a key role in coordinating work and facilitating information exchange on the full range of sustainable development issues and matters in the area of environment economics-this is a vital prerequisite to help incorporate environmental concerns into development decision making.The principal issues and findings at the CIDIE conference on environmental economics were There is a growing awareness of the need to incorporate environmental concerns into projects.Based on practical applications and the experience gained, economic methodologies best suited to the valuation of environmental costs and benefits in devel

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